Category Archives: Uncategorized

Why should a continuing care retirement community be considered for BCS?

Proximity to the US.  The Los Cabos international airport provides flights to all over the US, Canada and other parts of the world.   Access is simple!

Quality of Life:   is high with outstanding services, shopping, travel options available.

Medical Services:  are excellent and abundant and available at reasonable cost whether for emergency care or for general care.

Cost of Living:   Can be expected to be about 40% less than most parts of the US and Canada.

Climate:   360 days of sunshine each year.  Average temperatures range from 63 to 86 F. year round.  

LINDA JONES NEIL, listing broker for Rancho Gaspareno

For additional information:

(011-52) 612-157-6497

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Why is Baja California Sur the perfect location for this investment?

In 2018, Baja California Sure is the fastest growing state in the country with 18.1% growth, and industry has grown 92% over 2017 reports INEGI, the National Statistics Institute.

Situated on the Pacific Ocean and the Sea of Cortez, Baja California is the most desired and attractive tourism and retirement destination in the country.

La Paz, capital of the state, is more than 500 years old with seven universities, major sea research centers and is gateway to the fabled Sea of Cortez.

Southward, Todos Santos, a Magic Town, (Pueblo Magico) is home to artists, writers and creative people from all walks of life.

Los Cabos, golf center of Latin America, is home for many of the rich and famous, and there is something for everyone in Cabo! Up the East Cape, some of the finest sports fishing in the world is found and Cabo Pulmo, Marine Sanctuary, harbors hundreds of exotic species.

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Why is Mexico an ideal location for your next project?

As the leading Spanish speaking country in the world, Mexico encourages and welcomes foreign investment .

The economy is the 13th largest in the world in Nominal terms and the 11th largest by purchasing power parity (PPP), according to the International Monetary Fund.

Mexico is a young country with an average age of 27…….bodes well for the future.

Mexico is the world’s fourth largest oil exporter.   With the price of oil currently low, other sectors  such as manufacturing, tourism and workers´remittances provide greater foreign investment.

Mexico is the 8th most visited country in the world.

Mexico has 11 Free Trade Agreements covering 45 countries, it also has 9 Economic Complementation Agreements, has signed Investment Promotion and Protection Agreements with 2 countries and has negotiated Double Taxation treaties with more than 31 countries

Mexico, Canada and the US joined together in 1994 to create a continent wide free trade zone with a population of 439 million people and a combined GDP of 14 trillion USD.   This has recently been re-negotiated and is beneficial to all three countries.

Mexico is California’s main trading partner and 31% of all Californians are of Mexican descent.

10,000 baby boomers are turning 65 every single day, according to AARP.  This is expected to continue into the 2030s. Easy access, great weather, lively lifestyle and caring and welcoming Mexicans make this an attractive option for retirement and long term care in the country.

AMAR the Mexican retirement association is growing and providing good infrastructure to support the increasing Aging in Place facilities.

Younger people, thinking ahead to retirement, buy homes to provide rental income now, appreciation for the future retirement.This provides great vacation rentals. It is 40% less expensive to live in many parts of Mexico than it is to live in many parts of the US and Canada.

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The Role of a Closing Agent in a Mexican Property Transaction

The Role of the Closing Agent in a Mexican Property Transaction


by Linda Jones Neil


Every transfer of title to a Mexican property MUST, by law, be made before a Mexican notary public.


The Mexican notary public is required to have a degree in law.  He must have a minimum of five years of legal practice, pass a rigorous examination and then be appointed by the governor of the state in which he/she resides.   The notary is legally responsible for the review of the prior deed and the tax and lien certificates.  The notary must draft the new deed, calculate the taxes due and pay them.  Also very important, the notary is accountable for his/her actions through the state and national notary associations.


It is commonly believed that an attorney, in addition to the notary public, is required when buying property in Mexico.   This is not necessarily the case.  In fact it may make more sense to seek out a CLOSING AGENT to handle the many details of the transfer, such as ordering and reviewing the title investigation; obtaining the certificates and trust permits, interfacing with the buyer and seller, answering their questions and concerns in their native language, explaining the nuances of the transfer process; overseeing the payment of funds for these services and expenses; reviewing the deed to be sure names and addresses are correct; being sure it is registered in the public registry of property; making sure it is delivered to the buyer; providing tax receipts to the seller………….and more!


When these matters are left with the Notary Public to handle, they may not all get done, or get done slowly due to the work load of most Notaries.   When these matters are handed to another attorney to perform, they may be sandwiched in between criminal complaints, court appearances and other more remunerative activities.


A good Closing Agent can be an attorney with expertise in title transfers, or it can be a company with experienced closing officers and attorneys on its staff for consultations in the event there are title issues.   More and more there are closing agents throughout Mexico.   They are specialists in titles and transfers.

The role of the closing agent

An experienced Closing Agent is a key person in the real estate purchasing process. Hiring a good Closing Agent who understands the ins and outs of the Mexican legal system and the requirements of the law as it relates to foreign investment will make the real estate transaction go much smoother.


The closing agent should be involved in drawing up a promise contract and reviewing all documents including title, certificate of no encumbrances, and  permits. A closing agent can also order a complete title search before the transaction reaches the notary public, which will save the buyer valuable time and money should there be a problem with the title.


The prudent buyer will always insist upon using an independent third party closing agent to protect his or her interests.


Professional Closing Agents will have bi-lingual and experienced closing officers on staff to review the legalities of the transaction and to ensure that all the documents received are in order. Prudent buyers also enlist the help of the Closing Agent, who can oversee the permit process, review the draft of the deed being used in the transfer of title and order the title investigation, identifying any problems before the title has been transferred and money exchanged.

Finding a Trustworthy Closing agent


Clients should never hesitate to ask for details of the professional experience and references.  This is even more important when the real estate agent in the transaction is representing BOTH buyer and seller.  This is dual agency which is still common in Mexico.   In this case the buyer should definitely seek out his/her closing agent.


Questions to Ask a CLOSING AGENT:  What exact services will you provide? What areas of law or real estate are your specialties? Can you provide an estimate of taxes and closing cost expenses? Will you order or conduct a title search? Can you provide at least three references?   Do you have experience with transfers to foreigners, Mexican bank trusts and foreign investment? How long have you been offering Closing Services to the public? How do you handle the funds you receive for closing expenses? Do you prepare specific instructions for the disbursement of funds?


Closing Agents do not have to be specifically licensed in Mexico to be able to supervise the transfer process of Mexican property. It is important to be cautious and do the same homework as when researching a real estate agent. Ask for credentials and references. The more experienced the staff and in-house counsel the company has in handling foreign investment transactions, the more protection and safety the buyer should have in a Mexican property purchase.


Copyright, 2010-2014   Consultores Phoenix, S.C. Reproduction prohibited without permission.


about the author

LINDA NEIL  is  the founder of The Settlement Company®, which specializes in real estate transfers and escrows, specializing in the Virtual Closing®. The company does business throughout Mexico.   Licensed as a California real estate broker, Ms. Neil has pursued her profession in Mexico for more than thirty years. Her skills in negotiating contracts between parties from three distinct cultures have placed her services in demand as a consultant and for speaking engagements on Mexican law and customs in Mexico, the United States and Canada. She has been widely published on the subject of real property in Mexico. Memberships; FIABCI, AMPI and NAR.  Linda  is a former  member of the National Advisory Council of AMPI and has served as AMPI Coordinator for the state  of Baja California Sur.  Additionally she is co-founder of Global Mexico Real Estate Institute, dedicated to education the real estate professional in Mexico.

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by Linda Jones Neil


Everyday more and more foreigners, people from the U.S., Canada, Asia and Europe, have found Mexico to be an ideal location for healthy retirement.  Others have come to Mexico as a result of job transfers.  Others still, taking advantage of electronic and wireless communications, seek out delightful areas in which to live and work from their in-home offices and studios.


Many newcomers prefer to rent or lease a house or an apartment while they shop for the ideal location and home for purchase.  This increase in demand for housing has made the acquisition of rental properties an increasingly attractive investment.  What better and more secure income can be found than a house or apartment complex which will produce rental income for many years?  Especially when it is most likely increasing in value at the same time!


Investors can pay all cash, use funds from IRA accounts or even, possibly, negotiate seller financing to establish solid long-tem gains.


Rental contracts can be simple and should always contain an arbitration clause.  Just as in a rental in the U.S. or Canada, a security deposit is a good idea.


For the real estate investor who is thinking of acquiring properties for rental there are a couple of important considerations: one is the way to hold title and the other is how to declare and pay taxes on income.




A Mexican Corporation can be established to hold title to all NON-residential property.  This can mean apartments and houses which will be used entirely for rental and/or commercial purposes.  The expense involved in accounting and maintaining a corporation is substantial, however and may be too expensive if the investor has only a few properties. For properties owned by the corporation an IVA tax of 16% of the value of the construction is charged at acquisition, in addition to the 2% acquisition tax.   Corporate tax declarations must be filed monthly and estimated taxes paid monthly.  Property taxes will be charged at a rate for commercial not residential properties, as will utilities. Stock in the corporation, if sold or transferred, is subject to an income tax (ISR) similar to that paid by an individual on the gain on the sale of a house.


The alternative to the Mexican corporation is that the buyer hold title in fee simple, if in the interior of the country,  or in trust (fideicomiso), if the property is located in the restricted zone.  In fee simple, property will need to be registered with the Secretary of Foreign Relations but has no additional annual title fee.  In the trust, the annual cost to hold title will be the trustee fee of 375. USD to 550.USD.  Utilities and property taxes will generally be charged at a residential rate, rather than a commercial rate.


Annual maintenance, fees for accounting and legal services, as well as taxes, will generally be less for up to seven properties in fee simple where permitted, or in trust (fideicomiso) than the costs generated by the properties held by the Mexican corporation.




Mexico’s tax law is patterned after those of the United States and Canada and states that:


            “Physical persons (individuals) and legal persons (companies) who are residents of Mexico and who receive income in this country,  are obligated to register with Hacienda, declare their income and pay their taxes, regardless of the source;

            and………  “Physical and legal persons who are residents in a foreign country (outside Mexico) must declare their income and pay their taxes on all income generated in Mexico”………


If the properties are held in a Mexican corporation, the Mexican accountant will prepare the monthly declarations and estimated taxes will be paid.


If in a bank trust, a Mexican accounting firm can perform all necessary tax and accounting services including the monthly filings, tax payments and can provide the foreign owner with accounting and documents for obtaining tax credits on U.S. or Canadian taxes.


It has never been simpler to enjoy a return on investment, monthly income and pay taxes in accordance with the law!


Income on rental properties.2006. Copyright, 2004-2014, Consultores Phoenix, S.C. Reproduction prohibited without permission.

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about the author:

LINDA NEIL is the founder of The Settlement Company, which specializes in real estate transfers, escrows,and consultations.  Settlement also prepares monthly tax declarations, files them and perform additional essential landlord accounting services.


For reprints of this article or for further information on tax paying services, please contact The Settlement Company® at, and website:

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