● All foreigners with the intention of purchasing a home in Mexico by law need to acquire it via a Mexican Ownership Trust to comply with anachronical legislationthat forbids foreigners to own homes directly within the Prohibited Zone that is determined by the areas located 100 kilometers from the border lines inland and 50 kilometers from the high tide point inland.
● Mexican Ownership Trusts have a 50 year term, renewable for subsequent 50 year terms through a very simple and not costly process.
● Please read our OWNERSHIP AND GUARANTEE THROUGH MEXICAN OWNERSHIP TRUST section for in depth information on the ownership on any home via a Mexican Ownership and Guarantee Trust (OGT).

● Closing costs in Mexico vary from state to state but in general terms they end up being around 6.5 to 7.5% of the property value. These costs are basically the same as those paid by Mexicans and include Public Notary fees, Real Estate Acquisition Tax, Recording Fees at Public Real Estate Registry, No Encumbrances Certification, Real Estate Taxes Certification and other minor fees. The only additional closing costs paid by foreign investors are those related to the Mexican Ownership Trust setup fees and the corresponding acquisition permit that is issued by the Secretary of Foreign Relations.

● It is very important to convey to you that since your acquisition is reviewed by and formalized before a Mexican Public Notary in what is called an Escritura Pública or Public Deed, the process grants absolute legal certainty to the ownership of your property in Mexico.
● You will be appointed as Second Beneficiary under the Mexican Ownership Trust evidenced in the Escritura Pública or Public Deed and once the loan granted to you by TANA Finance is paid fully, you will automatically become First Beneficiary.
● As with Mexicans, all acquisitions of real estate are transferred via a Public Notary and the Public Deed later recorded at the corresponding Public Registry of Property. The role of Public Notaries includes their responsibility to act as an intermediary of Mexico’s Internal Revenue Service for collection and payment of all applicable taxes and grants further certainty that all real estate acquisitions comply with all legal laws and regulations.

● You will have the exact same rights as if you owned your property directly. You may use freely your home, lease it and even sell it. The only limitation is that in order to transfer title to any third party you must pay the balance of the loan granted to you by TANA Finance prior to or simultaneously to the execution of the Public Deed or Escritura Publica granted by a Public Notary which will evidence the property transfer and payment of the original loan.

● Yes, you may sell or transfer title to your property while you still owe TANA Finance any amount of the original loan, provided that at closing before the Public Notary you evidence prior payment in full of any amounts outstanding or at closing the outstanding balance is paid and TANA Finance confirms the receipt of such amount in writing.

● In Mexico Public Notaries are legal counsel for both parties and are obliged to verify that the seller has proper authority to sell the property and receive the funds and the purchaser has the ability to legally purchase the property either directly, when feasible, or via a Mexican Ownership Trust. They provide legal certainty to all parties and are accountable for any legal consequences the parties may suffer.

● Compared to real estate yearly taxes paid in the USA, Canada and Europe, Mexico’s Impuesto Predial is far less costly and represents only a fraction of those paid in other countries. Most states grant discounts if paid yearly in the month of January and such discounts could represent savings in excess of 6% compared to monthly payments.

● During the first year, you can expect to pay about $1,000 USD to close and own your home through a Mexican Ownership Trust. After the first year, expect a yearly fee to be paid to the Fiduciary of $500 USD.