Mexico! Has anyone sold property in Mexico?

Question

Hi BP members, I'm thinking about selling some property which I currently own in Mexico and haven't seen too much information on the subject other than what my RE agent in Mexico is telling me. I plan to use the funds to start my REI career here in the U.S. So I turn to this great community to ask, has anyone sold property in Mexico. what fees, taxes did you pay? How did you transfer the money to the U.S, etc.. Any help would be appreciated. Thanks.

Dion Rivera · Answer

Hi @Jorge Torres, I decided not to sell the property. Instead, I'm renting the few houses that were built in the property. However, one of my relatives did sell a property in Puerto Vallarta and it was relatively easy. They found a realtor in Puerto Vallarta who found a buyer. My relatives had to make a couple of trips to Mexico to sign paperwork, etc. The monies were in dollars and straightforward. I think it's getting easier to do business in Mexico with U.S. funds. The realtor fees were a bit high, around 6% but that also includes some of the taxes. I would recommend to get a hold of a realtor in Mexico and work with them. There are a lot of realtors on social media these days that have had much success with American buyers/sellers. Good luck to you. If I do sell the property, I'll update this thread. BTW, the property has appreciated substantially since my last post :).

Jorge Torres · Answer

Thanks for the reply @Dion Rivera. I already have a realtor in Monterrey, my concern is more with how to bring the money to the US, calculate taxes, etc. Im glad that you were lucky by not selling, however my main reason for selling is because now Im living in Texas and prefer to invest in here, plus I´m afraid of the peso losing power against usd.

Vinny NA · Answer

The best and quickest option to sell would be via realtors who work specifically in the region where you own a property. As mentioned in previous posts, the fee is usually 5-6% of the property price but it's negotiable depending on the value of the property. This should be helpful as well: https://rivieramayacozy.com/transfer-property-mexico/

When selling or buying in Mexico always remember to ask the realtor about his certificate, you'd like to avoid scams at all costs since getting the money back in case it happens can be challenging. Unfortunately, there's still no federal law in Mexico that requires people who act as realtors to be certified.

Mishan Andre · Answer

Hi @Dion Rivera I currently work in RE in Cabo San Lucas, Mexico.  Make sure your RE agent conducts a Capital Gains study prior to your sale.  This will indicate your "sweet spot" for your selling price.  The study will take into account the fluctuation in value of the peso from when you purchased, to where it is now.  Upon selling, you will be expected to pay 35% capital gains on the peso value of income from sale.  Your write-offs can include: acquisition tax (when you purchased), any commissions paid and any enhancements you made to the property (assuming you kept your facturas).  Let me know if you have any other questions - happy to help.

Jorge Torres · Answer

Hi @Dion Rivera -- Can you please tell me how things went, Im in your exact same position and have the exact same questions right now.

Account Closed · Answer

@Dion Rivera i just see this, hope is not too late i am actually born and raised in Mexico city i work for one of the worlds largest Real estate Private equity firms, and sold real estate in Mexico all over for about 2 years. so let me know if i am of any help

Lisa Loveless · Answer

@Mishan Andre I have a property In Mazatlan Mexico. Purchased the condo about 8 years ago from a couple from Seattle. All funds were exchanged in the US, however we were required to set up a trust with the bank in Mexico since the property is so close the ocean. I would like to sell now. I am willing to sell for the what I paid for the unit, can I just change the name on the trust to the new buyer? I get different answers from everyone in Mexico- the bank, the attorney. I would appreciate any help you can offer. Thanks in advance.

Mexico! Has anyone sold property in Mexico?

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