Due to Mexico tightening the tax regulations for foreign property ownership, there is a certain amount of paranoia that vacation there has become expensive. We are here to tell you it is not true and that you can plan to go to beautiful
Cabo San Lucas or anywhere else already today!
Many have a picture of Mexico as a dream land. This unfortunately, includes the conviction that you are allowed to do anything you want in this paradise. In the end, it is paraiso, right? Unfortunately this has led to many maltreatments of Mexican law, including the ones relating to property.
Originally Mexican government gives you the legal right to do it. However, once you have purchased a piece of land there you are considered their citizen (fideicomiso) you have to behave as their citizens (normal, right?) A lot of foreigners have purchased a house with private beach in Mexico but avoid paying taxes, they then rent it out, not unlike some of the los cabos villas.
Sure, the announced 25%-29% for the income rental tax sound agonizing, but, think of it -is it worth your daily anxiety that the Mexican law will knock at your door> The consequences will be much higher. Nothing is too expensive for the piece of your mind!
Do You Need the Villa for Vacation or For Renting?
Put a finger on your forehead and ask yourself: do I want monetary profit or fun? If it is about the cash, you have probably already read what you have to do – stick to the law and find the ways it can work for you. However, if you want to unwind in a posh house on a sunny beach, then it is not really a problem. Even now, there are still thousands of villas on offer for your own convenience and at reasonable prices (if you are reasonable of course).
Start planning just a tiny bit earlier and putting the money aside The implementation of taxes did switch the numbers on the tags for those pieces of heaven but it’s not at all that shocking. And you can see it with only 15 minutes spent on googling.
On Airbnb, for example, the price of luxury villas on Cabo starts already at $275. Can’t get much better than this if you think that you get the whole property, your own privacy and you choose with whom you share your bathroom! You also get the pool as an extra in most of them.
The most you would pay for such a thing on Aianb is a $1000, which, again, if divided by more people who would be occupied the place doesn’t even reach the scale of expensive.
Pricy Mexico everybody crazes about is nothing to be worried about. The ones that want to actually own a property there should be rightful, give money for what they should, and most importantly, pre-plan the investment. They always say to treat other’s homejust as you treat yours (it is a country this time).
As for the tourists, Mexico is still very affordable (especially Cabo San Lucas) It takes to look at AianB’s site just a minute to figure this out, and there are so many others that will provide the same service and will prove the point.