This is partially true, partially untrue.There is an 8% withholding in case that there are taxes owed.

Then there is the time element with holding costs.

With a fideicomiso, the gross income is taxed through a withholding tax whereas, with the corporation, the rate, you can deduct expenses but the taxation rate is higher.

Bear in mind that the fiscal treatment of the two options in Mexico is different (withholding tax on the gross income with the fideicomiso vs cost deductions with the corporation).

I'm sure over time more laws will be created to force the government to give that information in a more timely manner but for now they often obstruct the public by withholding it for a time.

If you control how they perform tasks, set their hours, or provide tools, they should likely be a W-2 employee, requiring you to withhold taxes and comply with payroll regulations.

They would withhold rent for minor items that were caused by the tenants.

Here is  the biggest question - I expect withholding  $1.00 of the security deposit is going to cause friction.

Purchase price: $450,000 Purchased property out of foreclosure, had problems with holder over tenant, but has been resolved, will rehab property to rent at FMV What made you interested in investing in this type of deal?

When I brought up that withholding proper documentation could be a breach of contract, the response I received was that I could terminate the agreement, but I wouldn’t get my escrow or due diligence money back.