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Who is JMcnamara Investments?
“…somos la llave.”
…the key to unlocking innumerable possibilities and invaluable opportunities in your quest for building an exceptional lifestyle.
JMcNamara Investments understands that life is short. You want to make the most of the life you have. You want to live fully. You want to make your mark.
We’re here to help.
Acquiring Real Estate?
JMC offers expertise and guidance in your search to acquire luxury real estate, homes and properties.
You seek the remarkably uncommon and we help you find it.
We offer access to exclusive property listings including a large inventory of luxury homes that match your lifestyle choices such as waterfront, golf, island, vacation, urban and many others.
Selling Real Estate?
The sale of a distinguished home or property should be prominent and memorable. To adequately represent a home of stature requires highly-qualified real estate professionals who not only possess local expertise but who also successfully achieve significant global reach. Our marketing and visual presentation techniques transform your property into an unforgettable attraction.
Contact JMcNamara Investments and start living your legacy… TODAY.
Where is JMcnamara Investments Located?
JMcnamara Investments is based from the Riviera Maya, Mexico. Our offices are located in Playa del Carmen, Mexico and we serve the following locations:
- Playa del Carmen
- Riviera Maya
- Puerto Aventuras
- Puerto Morelos
- Isla Mujeres
Can Foreigners Legally Purchase Property in Mexico?
Absolutely! Mexican laws states that foreigners have the right to own real estate in Mexico.
However, Mexican Law designates special requirements for foreigners when purchasing real estate located near the coast or near the border. Foreigners can acquire real estate located in these zones through a Fideicomiso (Mexican Bank Trust) or through forming a Mexican Corporation. We have a useful article that explains further. Click here to read more.
Why Buy Property in the Riviera Maya Mexico?
Cancun and the Riviera Maya represent one of the fastest growing tourist destinations in the entire Caribbean. It’s not hard to understand why: The Huffington Post even calls our alluring Caribbean destination a “Must-See” paradise. (Click here to read the publication’s reasons why.)
Playa del Carmen, in particular, has been growing so quickly it has been touted as one the fastest growing cities in both Latin America and North America for more than a handful of years now.
In general, coastal real estate markets throughout Mexico are literally booming.
Furthermore, as Mexico values and encourages foreign investment dollars, the country is focused on providing more accessibility and incentives for foreign investors. As such, the Latin American country is renowned as a top international destination for both tourism and retirement among US and Canadian citizens.
How are Property Taxes Calculated in Mexico?
Property taxes, known in Mexico as the Predial tax, have historically been low in Mexico and are one of the attractive aspects of owning real estate in the Latin American country. The Predial is a municipal tax paid annually and is calculated as a percentage (currently .25% of the assessed value), determined at the time of sale.
Generally speaking, you can expect to pay $100 usd per $100,000 usd of assessed value yearly. For a normal property they can range from $100 to $300 US. If paid in the first two months, you get a discount.
What are the Tax Regulations on Rental Income in Mexico?
Mexican law states that you must pay tax on any income derived in Mexico, therefore if you rent out your house and collect revenue, you should be paying taxes (you can offset expenses through deductions). Americans can claim the tax paid in Mexico on the US tax statements as a means of avoiding double taxation.
There are some options on how to calculate tax on rental income:
- The blind deduction of 35% of total income, without deductions with tax of 35% paid on the remaining amount.
- A 30% tax on income, less allowable deductions which include property tax, maintenance, interest on loans for construction expenses, insurance, salaries of employees and commissions paid to rental agents and property managers..
- A 25% tax on the gross income, no deductions.
Hacienda is paying more attention to internet advertising and is beginning to inquire into the income of those who are renting their homes. It makes sense to become legal since penalties for non-compliance can be considerable. Methods one and two above require the RFC (taxpayer identification number). Method three outlined above does not require residency or official status.
What are the Income Tax Regulations in Mexico?
If you work in Mexico you will pay income tax. Typically, when working as an employee, income tax is deducted at the source from the employer and paid to SAT (aka Hacienda) – the Federal Tax Collection department.
If you are an Independent Contractor vs an Employee, then in this case you would pay your own taxes directly to the government, making “declarations” on a monthly basis. Having a good accountant is essential.
What is the Sales Tax in Mexico?
Sales Tax in Mexico is known as IVA, “impuesto al valor agregado” (our equivalent to VAT – value-added tax). The rate for IVA is set at 16% and is charged on ‘most’ goods and services. In theory, it is supposed to be charged on ‘all’ goods and services. Typically, larger stores and businesses will automatically include IVA on everything. This means the tax is built into the price and you most likely won’t notice the charge.
However, some of the smaller shops do not include IVA in their published prices. You’ll find, when requesting a “Factura”, Mexico’s official Tax Receipt, that smaller business operations will explain that you will need to pay an additional 16% if you desire the Factura. A number of these small time operations try to avoid paying taxes and don’t report everything to the government.
Note: A “Factura” is the legal receipt given for goods and services in Mexico that can be used for business expenses or for deductions in Mexican business transactions. The receipts you receive from most vendors are not “facturas” but rather “Notas De Remission” (a simple receipt not used for legal requirements). You must have the Tax ID information issued to you by SAT/Hacienda (RFC, business operation, business address, etc…), on hand in order to request a “Factura” for any business expenses.
What are the Current Tax Treaties between Mexico and the United States and Canada?
Foreigners are not taxed on money they bring into Mexico. However, recently there has been some sharing of information between the three NAFTA countries, which may require you to be more diligent in your reporting of investment income in Mexico and property purchases or rental income in the United States and Canada.
The United States applies serious fines and even jail time when the requirement for reporting revenue generated in a foreign country is not met. It is best to consult your US tax accountant about these requirements.
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