Fideicomiso vs Mexican Corporation

While both fideicomiso and Mexican corporations offer distinct advantages, fideicomiso remains the safest option to buy property within Mexico's restricted zones. Although entrusting a bank to hold your deed might feel unsettling to some, it provides legal security and ensures possession of the property. This arrangement allows you to act freely and legally with your property—be it renting, remodeling, or selling—while adhering to Mexican laws governing ownership in these areas.

Additionally, fideicomiso arrangements allow you to appoint as many beneficiaries as you wish, adding a layer of flexibility and long-term planning to property ownership. You can also enjoy the freedom to rent, remodel, or sell your property without restrictions, all while staying compliant with local laws.

Before 2012, opening a Mexican corporation to purchase property was a simpler and more cost-effective process compared to setting up a fideicomiso. However, significant reforms to Mexico's fiscal law in 2012 introduced stricter regulations and higher compliance requirements, making the process more complex and less appealing for prospective homeowners.

Opening a Mexican corporation is a strategic choice if your plans include operating a business in Yucatan or anywhere else in Mexico. A corporation allows you to enjoy tax efficiencies and the ability to manage your property as part of a larger business model. Platforms like Airbnb or Vrbo make it easy to capitalize on the area's steady tourist demand, offering tools that streamline your rental operations and ensure compliance with tax authorities, including the Secretary of Tax Administration (SAT).

When you are ready to sell your house, providing the Secretary of Tax Administration with comprehensive accounting information is essential. This includes income statements, expense reports, tax filing records, and rental history. Proper documentation not only facilitates a smooth transaction but also ensures compliance with Mexico’s tax laws, particularly in regions with high rental activity or foreign investments. Maintaining a transparent record of all business operations associated with the property will help prevent legal complications and expedite the selling process.

Even if you’re not selling your property, renewing your immigration status may require tax and employee records.