Campeche

Ref: 74000

Type: Apartment (New, Offplan)

Location: Campeche Playa, Campeche, Mexico

Price: 238029.6 to 524681.1 EUR (328000 to 723000 USD)

Size: 70 m2 to 142 m2

1 bedroom, 1 bathroom

portfolio

Pool
Garage
Terrace
Furnished
Air Conditioning

Distance to beach: beach front
Distance to golf course: N/A
Distance to airport: The nearest airport is in Campeche city, only 45 minutes drive from the resort.
Distance to town: N/A

Images

About Mexico

“The United Mexican States (Spanish: Estados Unidos Mexicanos (help·info)), or simply Mexico (Spanish: México (help·info)), is a country located in North America, bounded on the north by the United States; on the south and west by the North Pacific Ocean; on the southeast by Guatemala, Belize, and the Caribbean Sea; and on the east by the Gulf of Mexico.[1][2] The United Mexican States conform a constitutional republican federation of thirty-one states and a federal district, Mexico City, one of the most populous cities on Earth.

Covering almost 2 million square kilometers,[3] Mexico is the 5th largest country in the Americas by total area and 15th largest in the world. With a population of about 108 million, it is the 11th most populous country and the most populous Spanish-speaking country in the world.

As the only Latin American member of the Organisation for Economic Co-operation and Development (OECD) since 1994, Mexico is firmly established as an upper middle-income country. Federal elections held in July 2000 marked the first time since 1929 that an opposition party defeated the Institutional Revolutionary Party (Partido Revolucionario Institucional: PRI) at the national presidential race, culminating a process of political alternation that had begun at the local level since the 1980s.”

(Source: Wikipedia)

A Guide to Buying Property in Mexico

1st.- LEGISLATIVE BACKGROUND

Article 27 Part I of the Mexican Constitution prohibits foreigners from directly acquiring property for residential purposes that is located within 100 kilometres of its borders or within the 50-kilometer band along the Mexican coasts. This area is known as the "Restricted Zone."

Nevertheless, the Foreign Investment Act does allow foreign investors to acquire the rights for use and exploitation of property located in this zone by means of a trust agreement.

2nd.- CHARACTERISTICS OF THE TRUST

In this type of agreement, the seller or developer (original owner) acting as trustor irrevocably transmits ownership of the property to a financial institution (trustee), who receives the price agreed upon for that property from the acquiring foreigner (beneficiary).

The trustee will maintain ownership of the property for the contracted term (up to 50 years) and grant the foreign investor its possession, use, exploitation and/or enjoyment, as per the terms of the permit that was previously issued by the Department (Ministry) of External Affairs.

In Mexico, only banking institutions are authorised to execute trusts.

The legal effect of a trust is that the trustee, which is a Mexican legal entity, maintains legal ownership of the property in order to comply with the stipulations of Article 27 of the Mexican Constitution.

3rd.- CONSTITUTIONAL REQUIREMENTS:

The following information and documentation is required:

Photostat copy of the ownership title of the property, a receipt showing that the property tax has been paid and a sketch of its location.
Name, address, nationality of the seller (trustor).
Name, address, nationality, occupation and telephone number of the foreign investor (beneficiary). The same information is required of people who wish to be appointed as beneficiaries of the trust in the case of the death of the original beneficiary.
The foreign investor and his or her beneficiaries need not have any special migratory status to participate in a trust.
The price agreed upon between the seller and the investor.

The trustee will use this information to apply for a permit from the Ministry of Foreign Affairs to establish the trust.

Once that permit is received, the trustee will send it to a notary along with the trust agreement draft, in order for the notary to proceed with its formalisation and legalisation as a public deed.

Notaries in Mexico have a higher level of competence and are invested with more responsibility than those, for example, in the USA. According to Mexican law, they must be lawyers authorised by the national government in order to hold such a position. Their responsibilities are, among others:

To verify that the property stated in the agreement is free of encumbrances and mortgages.
To ensure that the acts and agreements formalised in their presence are complied with according to the requirements of municipal, state, and federal laws and that the taxes originating from the transaction are paid.
To register the trust agreement in the Public Registry of Property. Once this is done, the notary will give the beneficiary an original of the title contained in the trust.

In the event that the beneficiary cannot be present at the signing of the agreement, he or she must send the trustee a letter requesting the establishment of the trust and accepting the rights and obligations contained in that agreement. In such case, the trustee will sign the trust in the name of the beneficiary.

4th.- RIGHTS AND OBLIGATIONS OF THE BENEFICIARY

The beneficiary will have the right to the use and exploitation of the property; that is to say, he or she can inhabit it, make alterations to it, build or improve upon it and let it out. The beneficiary will also be entitled to order the trustee to charge against or mortgage the property, transfer its ownership, or formalise the transfer of rights as beneficiary to another individual or legal entity.

In the event that the beneficiary sells the property to another foreigner, he or she can transfer the trust rights to the new owner. This transfer must be formalised before a Mexican notary upon payment of the required taxes involved in the transaction. Furthermore, the TRUSTEE must give their consent before the transfer can be implemented.

Likewise, the beneficiary can indicate one or more "substitute beneficiaries" in the trust deed, who will receive all the rights and obligations that are derived from the trust in case of the death of the original beneficiary. If this happens, the beneficiary(ies) will only have to present their identification documents and a certified copy of the beneficiary's death certificate to the trustee, thereby avoiding the need to make a declaration of legal inheritance.

5th.- CHARGES AND TAXES

Periodic charges and taxes

Property tax: is paid annually and in Campeche it is 0.12% of the value of the property annually
Maintenance payments in the case of condominiums. These are payments to the Association of Property Owners.
Public utilities (water, electricity, etc.)

Trustee's (Bank) Fees

Fees to the trustee for the yearly management of the trust.

Commissions or fees that the trustee charges for this type of trust depend on the bank that is designated as trustee and can vary, but the following amounts would be considered to be standard charges:

On the date of establishment: for opening, acceptance of duties and signing of the agreement as trustees: approximately US 600.00 dollars. This amount is paid only once on signing the public deed of trust.
Annually: commissions for the property title, to the amount of US 800.00 dollars annually. This commission is paid in advance.

Trustee's fees carry VAT (value added tax) at the rate of 15% in Campeche.

Annually, on the anniversary of the trust, the trustee will send a notice for the charge of the management commission to the beneficiary's residence.

Charges and taxes on the date of formalising the trust

In addition to the charges described in the section above, the following charges are generated for initializing the trust and accepting the duties of Trustee:

The notary's charges and fees for formalising the trust, which can vary from 0.03% to 1% of the consideration, depending on the notary.
Tax for registering in the Public Registry of Property, which is 1% of the value of the operation to be paid at the time of registration.
Tax for Transfer of Ownership.- for the acquisition of the property, which will be 2% of the value of the consideration.
Additionally, fees for obtaining the permit from the Ministry of Foreign Affairs and for the registration of the trust in the National Registry of Foreign Investments must be paid. This is a one-off fee can reach approximately 1,500.00 dollars..

6th.- RENEWAL OF THE TRUST

Article 13 of the Foreign Investment Act establishes that the Ministry of Foreign Affairs will allow the renewal of trusts with property in the "restricted zone" for a term equal to that of the original trust.

In the interpretation of the previous article, the extension can be requested more than once and the additional authorised duration can be granted for another 50 years or less.

Furthermore, the Ministry of Foreign Affairs can authorise a new trust on property that is transferred from one beneficiary to another for a term of up to 50 years, which is once again renewable for another 50, if the beneficiaries of the original beneficiary and the new beneficiary are different.

A new trust can be established if the current trust is first terminated and the taxes originating from the establishment of the new trust are paid. As stated above, according to current law with respect to the extension of the trust, the additional years to be authorised remain at the discretion of the authorities.

7th.- SECOND TRANSFER OF THE PROPERTY

If a foreign resident, be it an individual or a company, transfers the rights of the trust for a property located in Mexico, this person or company must pay a tax of 25% on the total income obtained with no deductions.

However, a tax of 29% may be applied to the profit if and only if the foreigner names a representative in Mexico and the purchase is made through a public deed. While the trust exists, the trustee will be considered its representative.

Mexico has agreements with several countries in order to avoid double taxation, including, Germany, the United Kingdom, Spain, Denmark, the USA and Canada. However, it is not possible to reduce the amount of this tax.

Completion Details

Phase 1 is due for completion in December 2008. This will include the Hotel, Marina, Town Centre and the first 9 holes of the golf course. The golf course completion is due to fall in line with phase 2 completion. Subsequent phases are due to complete