Blog

Corporate law legal documents with gavel at the side

To establish a legal entity in Mexico as a foreigner you will initially need to secure a valid passport.&nbsp; You can also use a valid corporation that has been validated, stamped by a Mexican Consulate in your area.&nbsp; &nbsp;Subsequently, you must obtain a Mexican Tax Identification Number (RFC) from the Mexican Tax Administration Service (SAT). The next step involves registering a unique business name with the Mexican Commercial Information System to ensure the distinctiveness of your business identity. Establishing a physical business address in Mexico is also a prerequisite. Furthermore, you will need to engage a notary public to assist in formalizing the incorporation documents, which includes drafting and notarizing the necessary documents like the articles of incorporation. Lastly, securing the necessary permits and licenses specific to your business type and location is vital to commence operations legally. It is advisable to consult with a local legal or business advisor to navigate through this process smoothly.To establish a legal entity you will generally need the following:<ol><li>Valid Passport: To verify your identity.</li><li>Visa or Resident Card: Depending on the type of business and your stay in Mexico, you might need a specific type of visa or a resident card.</li><li>Tax Identification Number (RFC): Obtain a Mexican tax identification number from the Mexican Tax Administration Service (SAT).</li><li>Business Name: Register a unique business name with the Mexican Commercial Information System (Sistema de Información Comercial).</li><li>Business Address: Establish a physical business address in Mexico.</li><li>Notary Public: Engage a notary public to formalize the incorporation documents.</li><li>Incorporation Documents: Draft and notarize the incorporation documents, including the articles of incorporation and bylaws.</li><li>Permits and Licenses: Obtain the necessary permits and licenses to operate, which can vary depending on the type of business and its location.</li><li>Foreign Investment Law Compliance: If applicable, comply with the Mexican Foreign Investment Law, which might require registering with the National Registry of Foreign Investments.</li><li>Bank Account: Open a Mexican bank account in the name of the business.</li><li>Accountant or Legal Representative: Hire a local accountant or legal representative to assist with tax and legal compliance.</li><li>Social Security Registration: Register the business and its employees with the Mexican Social Security Institute (IMSS).</li><li>Local and Municipal Registrations: Depending on the location, you might need to register with local and municipal authorities for additional permits and licenses.</li></ol> Note: The specific requirements can vary depending on the type of legal entity you are establishing. It is recommended to consult with a legal or business advisor in Mexico to guide you through the process.

What you need to establish a Mexican Entity

<h3>Qualifying for a Capital Gains Reduction in Mexico: A Detailed Guide</h3>If you are a property owner in Mexico and are planning to sell your property, it is important to understand the capital gains tax implications. However, the good news is that there are ways to qualify for a capital gains reduction in Mexico. In this detailed guide, we will walk you through the requirements and steps to take advantage of this opportunity.<h3>Understanding Capital Gains Tax in Mexico</h3>Capital gains tax is a tax imposed on the profit made from the sale of an asset, such as real estate. In Mexico, the capital gains tax rate is generally 20% of the profit. However, there are certain circumstances that may allow you to reduce this tax burden.<h3>Steps to Qualify for a Capital Gains Reduction </h3><h3>Temporary Residency:</h3>Importance: Holding a temporary residency for at least three years and the duration the property is held, is the foundational requirement to be eligible for a capital gains reduction. This status indicates that you have a legal and recognized presence in Mexico, which can affect various financial and legal matters, including taxation.Acquiring Temporary Residency: The process involves submitting an application, providing necessary documentation, and meeting specific criteria set by the Mexican immigration authorities. The duration of a temporary residency visa can range from one year to four years.How Lighthouse Can Help: If you're unfamiliar with the process or find it daunting, organizations like Lighthouse offer guidance and assistance in navigating the residency application process, ensuring that all requirements are met and paperwork is correctly filed.<h3>Holding Period</h3>►&nbsp; Visa Duration: Before you can benefit from the capital gains reduction, you must hold your temporary residency visa for at least three years. This duration ensures a level of commitment and stability in the country.►&nbsp; Property Ownership: Similarly, the property you intend to sell should have been under your ownership for a minimum of three years. This stipulation is in place to discourage rapid buying and selling, which can destabilize the real estate market.<h3>Type of Property:</h3>►&nbsp; Residential Requirement: The property in question must be residential. This means it's designed for people to live in, as opposed to commercial properties or land meant for development. The rationale behind this is to provide tax relief to individuals selling their homes, rather than businesses or investors dealing in commercial real estate. ►&nbsp; Verification: Typically, the property's classification as residential can be verified through property deeds, utility bills, or other official documents.<h3>Property Value:</h3>►&nbsp; Minimum Value: The property you're selling should have a value of at least $300,000 USD. This threshold ensures that the capital gains reduction applies to properties of significant value, potentially targeting middle to upper-tier real estate transactions. ►&nbsp; Valuation: It's crucial to get an official valuation of the property to determine its market value. This can be done through certified professionals or institutions that specialize in property valuation in Mexico.<h3>Noteworthy:</h3>The reduction max is $5,000,000 pesos per owner of the property.&nbsp; This means if more than one owner, each owner is eligible for a reduction of their captial gains.&nbsp; So, depending on the value of the property, time held and resulting profit and number of owners, the reduction can be sizeable.&nbsp; <a data-mce-href="https://wa.me/+5219842155823" href="https://wa.me/+5219842155823" title="Message us via WhatsApp to get more information." target="_blank" rel="noopener">Message us via WhatsApp to get more information.﻿</a><h3>Age and Disability</h3>Mexico provides additional capital gains reductions for individuals who are 65 years or older, or who have a disability. If you meet either of these criteria, you may be eligible for a reduction of up to 1,000,000 pesos (approximately $50,000 USD).<h3>Conclusion</h3>Qualifying for a capital gains reduction in Mexico can significantly reduce your tax liability when selling a property. By understanding the eligibility requirements and following the necessary steps, you can take advantage of these opportunities and maximize your financial gains. Remember, consulting with a tax professional is crucial to ensure compliance with Mexican tax laws and optimize your tax situation. &nbsp;<a title="Message us via WhatsApp to get more information." href="https://wa.me/+5219842155823" target="_blank" rel="noopener" data-mce-href="https://wa.me/+5219842155823">Message us via WhatsApp to get more information.</a>

Qualifying for a Capital Gains Reduction in Mexico: A Detailed Guide

For many foreign investors, the allure of Mexico's pristine beaches, vibrant culture, and promising real estate market is undeniable. However, navigating the legalities of property ownership in Mexico, especially in the restricted zones, can seem daunting. That's where the option of acquiring real estate through a Mexican Anonymous Corporation, AC, becomes attractive. Let's dive into what this means, its benefits, and the processes involved.<h2>What is an AC?</h2>An Anonymous Corporation, or AC, is a legal entity established in Mexico that allows for the acquisition and ownership of real estate by foreign individuals or companies. It provides a layer of anonymity and protection for the investors, making it an attractive option for those looking to invest in Mexican real estate.Types of Anonymous Corporation in Mexico: ►&nbsp; Sociedad Anónima (S.A.): This is essentially a corporation where shareholders' liability is limited to their contribution. It's a common choice for both local and foreign investors. ►&nbsp; Sociedad Anónima de Capital Variable (S.A. de C.V.): A variant of the S.A., this structure allows flexibility in terms of capital adjustments without needing a fresh incorporation act. Both are fit for real estate acquisitions, but specific rules apply when foreign entities or individuals are part of the equation.Benefits of Using an Anonymous Corporation in Real Estate Transactions: ►&nbsp; Access to Restricted Zones: Foreigners can skirt around direct ownership restrictions in certain zones using an S.A. or S.A. de C.V. ►&nbsp; Limited Liability: Personal assets stay protected, as liabilities are confined to the corporation. ►&nbsp; Ownership Flexibility: Especially with an S.A. de C.V., capital structure adjustments are more straightforward. ►&nbsp; Estate Planning and Continuity: A corporation offers a seamless transition of assets, even when a shareholder passes away. ►&nbsp; Tax Planning: Some potential tax benefits can arise from corporate property ownership, though it's crucial to consult with tax experts for specific advice. ►&nbsp; Professional Management: Expert management can be hired to oversee property assets. ►&nbsp; Credibility Boost: In the eyes of local stakeholders, operating through a corporation can amplify credibility. Requirements and Procedures to Establish an AC: ►&nbsp; Name Approval: Submit at least three name options to the Ministry of Economy to get a unique corporate name. ►&nbsp; Draft the Articles of Incorporation: Collaborate with a Mexican notary public to create this legal document. ►&nbsp; Foreign Investment Registration: If there are foreign shareholders, registration with the National Registry of Foreign Investments is mandatory. ►&nbsp; Bank Trust (Fideicomiso): For properties within the restricted zones, an additional bank trust might be required, even if owned by a corporation. ►&nbsp; Operating License and Tax Registration: Obtain an operating license from the local municipality and register with the tax authorities. Necessary Documents: 1.&nbsp; Articles of Incorporation 2.&nbsp; Proof of Name Approval 3.&nbsp; IDs of Shareholders and Board Members 4.&nbsp; Proof of Address for the Corporation 5.&nbsp; Foreign Investment Registration (if applicable) 6.&nbsp; Bank Trust Documents (for restricted zones) Timelines and Costs: Establishing an AC can take anywhere from 4-6 weeks. Costs can vary widely based on legal fees, notary charges, and other administrative expenses. Generally, one can anticipate costs ranging from $2,000 to $5,000 USD, though this is just an approximate range.Tax Advantages: While owning property through a corporation can provide some tax benefits, such as potential deductions related to property management or depreciation, it's essential to understand that corporations also have yearly tax obligations. Always consult with a local tax specialist to make the most of tax advantages while ensuring compliance.In conclusion, while using a Mexican Anonymous Corporation can be a strategic move for foreign real estate investors, it's paramount to have the right guidance. At Lighthouse Real Estate and Legal Services, we pride ourselves on illuminating the path for our clients. Reach out to us for personalized advice and insights.

Acquiring Real Estate Through a Mexican Anonymous Corporation

<figure id="figure-ia05tafm8kln1jzyp8"><img id="ia05tafm8kln1jzyp8" src="https://cdn.durable.co/blocks/7If7RtAz6mFEvofB2ZmW7eIM8JAnM4zgffQqH9fkMkFTaRyagkxxx9mQYSWelyy3.jpg" alt="New airport in Tulum Mexico" class="object-cover bg-gray-100 rounded-sm md:rounded-md lg:rounded-lg" style="aspect-ratio: 16/9; object-position: undefined undefined;" data-corners="default" data-aspect="16:9" data-caption="" data-positionx="undefined" data-positiony="undefined" data-mce-src="https://cdn.durable.co/blocks/7If7RtAz6mFEvofB2ZmW7eIM8JAnM4zgffQqH9fkMkFTaRyagkxxx9mQYSWelyy3.jpg" data-mce-style="aspect-ratio: 16/9; object-position: undefined undefined;"></figure><h3>The Upcoming Airport in Tulum, Mexico: A Game-Changer for Tourism</h3>Tulum, a picturesque town on the Caribbean coastline of Mexico's Yucatán Peninsula, has long been a favorite destination for travelers seeking a blend of ancient history, stunning beaches, and a laid-back vibe. With the announcement of a new airport coming to Tulum, the region is poised to experience a significant boost in tourism and economic growth. Here's what you need to know about this exciting development.<h3>1. Why Tulum?</h3>Tulum has been on the radar of international travelers for years, primarily due to its well-preserved ruins of an ancient Mayan port city and its pristine beaches. The town offers a unique blend of cultural heritage, natural beauty, and modern amenities. The addition of an airport will make this gem even more accessible to the world.<h3>2. Economic Implications</h3>The construction of the Tulum airport is expected to bring a surge in job opportunities for the local community. From construction roles to airport staff and increased demand in the hospitality sector, the economic benefits are vast. Moreover, with easier access to Tulum, local businesses, artisans, and tour operators can expect a rise in clientele.<h3>3. Boosting Tourism</h3>Currently, travelers heading to Tulum typically fly into Cancún and then undertake a 1.5 to 2-hour drive. The new airport will streamline this process, making Tulum a more attractive destination for short getaways. It's also anticipated that the airport will increase the number of international tourists, especially from regions that previously found the journey cumbersome.<h3>4. Environmental Considerations</h3>With any major infrastructure project, especially in a region known for its natural beauty and ecological significance, environmental concerns arise. Authorities have emphasized the importance of sustainable construction practices to minimize the impact on Tulum's delicate ecosystems. It's crucial that the airport's development prioritizes the preservation of the area's natural habitats and biodiversity.<h3>5. What to Expect</h3>The Tulum airport is expected to feature state-of-the-art facilities, catering to both domestic and international flights. Travelers can look forward to modern amenities, streamlined security processes, and a range of services designed to enhance the travel experience.<h3>6. The Future of Tulum</h3>With the airport in place, Tulum is set to solidify its position as a top-tier travel destination in Mexico. The town's charm, combined with increased accessibility, will undoubtedly attract a broader spectrum of travelers, from history enthusiasts and beach lovers to luxury seekers and eco-tourists.In ConclusionThe announcement of the Tulum airport is a testament to the town's growing significance on the global travel map. While the influx of tourists will bring numerous benefits, it's essential to approach this growth sustainably, ensuring that Tulum retains its unique charm and natural beauty. As the world watches this exciting development unfold, Tulum is gearing up for a new chapter in its rich history.

The Upcoming Airport in Tulum, Mexico: A Game-Changer for Tourism

Resort Beach Chairs at Tropical Ocean Hotel with Palm Trees on Sunny Day

Buying a property in Riviera Maya, Mexico can be an exciting and life-changing experience. With its beautiful beaches, rich culture, and warm climate, it's no wonder that so many people are drawn to this region. However, before making such a big investment, there are a few things that you should consider.<h3>Research the area</h3>The first thing that you should do before buying a property in Riviera Maya is to research the area thoroughly. This includes learning about the local culture, the climate, the economy, and the real estate market. By doing this, you can get a better understanding of what to expect when you move to the area.<h3>Consider the location</h3>Another important factor to consider is the location of the property. Do you want to be close to the beach, or do you prefer a more secluded area? Are you looking for a property in a gated community or a more traditional Mexican neighborhood? These are all important questions to ask yourself before making a decision.<h3>Work with a real estate agent</h3>Working with a reputable real estate agent who specializes in the Riviera Maya area can be incredibly helpful. An experienced agent can help you find properties that meet your specific needs and budget, and can also guide you through the buying process.<h3>Get your finances in order</h3>Before making an offer on a property, it's important to get your finances in order. This includes getting pre-approved for a mortgage, if necessary, and having a clear understanding of your budget. You should also be prepared to pay for closing costs, property taxes, and other fees associated with buying a property in Mexico.<h3>Understand the legal process</h3>Buying a property in Mexico is different than buying a property in the United States or Canada. It's important to have the right legal partner like Lighthouse to explain the legal process and the requirements for foreign buyers. This includes obtaining a Mexican bank trust, known as a <a data-mce-href="https://lighthousemex.com/blog/navigating-the-fideicomiso-structure--a-comprehensive-guide-to-buying-property-in-mexico" href="https://lighthousemex.com/blog/navigating-the-fideicomiso-structure--a-comprehensive-guide-to-buying-property-in-mexico" title="What is a fideicomiso">fideicomiso</a>, which is required for non-Mexican citizens to own property within 50 kilometers of the coast.<h3>Visit the property in person</h3>While it may be tempting to buy a property sight unseen, it's always best to visit the property in person before making a decision. This will give you a better sense of the property's condition, location, and overall suitability for your needs.<h3>Consider the property's potential</h3>When visiting a property, it's important to consider its potential. Is it in need of repairs or renovations? Does it have the potential to generate rental income? These are all important factors to consider when making a decision.<h3>Make an informed decision</h3>Buying a property in Riviera Maya, Mexico can be a wonderful experience, but it's important to make an informed decision. By researching the area, working with a real estate agent, getting your finances in order, being guided by Lighthouse and understanding the legal process, visiting the property in person, and considering its potential, you can make a decision that you'll be happy with for years to come.<figure id="figure-q358z6s4ilmtsf03i"><img id="q358z6s4ilmtsf03i" src="https://images.unsplash.com/photo-1482288357941-9348c97aecde?crop=entropy&amp;cs=tinysrgb&amp;fit=max&amp;fm=jpg&amp;ixid=M3wyNjI5NjF8MHwxfHNlYXJjaHwyNnx8Uml2aWVyYSUyME1heWElMjBiZWFjaHxlbnwwfHx8fDE2OTUzMzc5MDh8MA&amp;ixlib=rb-4.0.3&amp;q=80&amp;w=1080" alt="Riviera Maya beach" class="object-cover bg-gray-100" style="aspect-ratio: 16/9;" data-mce-src="https://images.unsplash.com/photo-1482288357941-9348c97aecde?crop=entropy&amp;cs=tinysrgb&amp;fit=max&amp;fm=jpg&amp;ixid=M3wyNjI5NjF8MHwxfHNlYXJjaHwyNnx8Uml2aWVyYSUyME1heWElMjBiZWFjaHxlbnwwfHx8fDE2OTUzMzc5MDh8MA&amp;ixlib=rb-4.0.3&amp;q=80&amp;w=1080" data-mce-style="aspect-ratio: 16/9;"></figure>

What should I do before buying a property in Riviera Maya Mexico

Before you open a business bank account, you will need to legally establish your business in Mexico. Generally, the steps include:Step 1: Business Incorporation&nbsp; &nbsp; &nbsp;1.&nbsp; Choosing a Business Structure: Decide on a suitable business structure (e.g., S.A., S. de R.L.).&nbsp; <a data-mce-href="https://lighthousemex.com/blog/legal-entities-in-mexico" href="https://lighthousemex.com/blog/legal-entities-in-mexico" title=" Click for more Info" target="_blank" rel="noopener">Click for more Info</a> &nbsp; &nbsp; &nbsp;2.&nbsp; Notary Public: Get in touch with a notary public to facilitate the incorporation process.&nbsp; <a data-mce-href="https://lighthousemex.com/blog/mexican-notary--or--notario-p-blico" href="https://lighthousemex.com/blog/mexican-notary--or--notario-p-blico" title="Click for more Info" target="_blank" rel="noopener">Click for more Info</a> &nbsp; &nbsp; &nbsp;3.&nbsp; Business Name: Register your business name with the Mexican Institute of Industrial Property. &nbsp; &nbsp; &nbsp;4.&nbsp; Tax Identification Number (RFC): Obtain a Federal Taxpayers Registry Number (Registro Federal de Contribuyentes, RFC) from the Tax Administration Service (Servicio de Administración Tributaria, SAT). &nbsp; &nbsp; 5.&nbsp; Permits and Licenses: Acquire necessary business permits and licenses from local and federal government entities.Step 2: Gathering Necessary Documents to Open a Business Bank Account, you would typically need to gather several documents, including:&nbsp; &nbsp; 1.&nbsp; Proof of Identity: Government-issued identification for all account signatories (e.g., passport, Mexican Residency Card, INE card). &nbsp; &nbsp; 2.&nbsp; Proof of Shareholder Address: Recent utility bills to provide proof of business address. (REGISTRO PÚBLICO DE LA PROPIEDAD) &nbsp; &nbsp; 3.&nbsp; Incorporation Documents: Legal documents proving the establishment of the business, including the articles of incorporation. (ACTA CONSTITUTIVA) &nbsp; &nbsp; 4.&nbsp; RFC Certificate: The RFC certificate issued by SAT. (CONSTANCIA DEL SAT DE LA EMPRESA)May also need: &nbsp; &nbsp; &gt;&gt;&nbsp; Foreign Investment Registration: If applicable, register as a foreign investor and obtain the necessary ID or permits. &nbsp; &nbsp; &gt;&gt;&nbsp; Depending on the bank, they may require a signed authorization to check the shareholders in the Mexican Credit Bureau &nbsp; &nbsp; &gt;&gt;&nbsp; Power of Attorney: If someone else will be opening the account on behalf of the business, a power of attorney document may be needed.Step 3: Choosing the Right Bank and Account TypeBefore you proceed, research different banks and account types available in Mexico to find one that suits your business needs. Consider factors such as fees, accessibility, services offered, time to open the account, and the reputation of the bank.The time to open an account will vary from bank to bank, from between 3 weeks to 2 or more months. Initial deposits will vary from bank to bank, from between $5,000 Pesos to $25,000 Pesos.&nbsp; Also, some banks debit annual $5,000 Pesos “insurance” from the balance to protect the account.Step 4: Application Process&nbsp; &nbsp; &gt;&gt;&nbsp; Bank Appointment: Schedule an appointment with the chosen bank. &nbsp; &nbsp; &gt;&gt;&nbsp; Application Form: Complete the business bank account application form provided by the bank. &nbsp; &nbsp; &gt;&gt;&nbsp; Document Submission: Submit all the necessary documents mentioned in step 2.Step 5: Verification and Account ApprovalOnce you have submitted the application form and all the necessary documents, the bank will review your application and conduct a verification process. This may include background checks on the business and its signatories.Step 6: Account ActivationOnce your application is approved, you will be notified by the bank, and you can proceed to activate your account, set up online banking, and other relevant services.Step 7: Maintaining ComplianceAfter the account is set up, ensure to maintain compliance with the bank’s policies and Mexican regulations, and follow the Mexican Accounting practices to prevent any issues with your account in the future.

Blog

What you need to establish a Mexican Entity

Qualifying for a Capital Gains Reduction in Mexico: A Det...

Acquiring Real Estate Through a Mexican Anonymous Corpora...

The Upcoming Airport in Tulum, Mexico: A Game-Changer for...

What should I do before buying a property in Riviera Maya...

How to Open a Business Bank Account in Mexico