What are the advantages and disadvantages of incorporation & citizenship?
The major advantage of incorporation or citizenship is that you can avoid having to maintain a trust. The Mexican government views a Mexican corporation as a citizen and therefore no trust is needed.
The costs of forming a corporation can vary greatly, but it is safe to say that over several years you will save money, however, should you sell the property here in Mexico, any tax exemption you may have had is greatly diminished as you will be paying your gain at a corporate level which is much higher.
From a mortgage viewpoint, the great disadvantage of buying property as a corporation is that most lenders will not finance a residential corporate property.
Becoming a Mexican citizen is a serious step involving a great deal of forethought and commitment. If you are only thinking of becoming a citizen solely for the purposes of buying a home, then you are on the wrong track. Again, I will say that becoming a citizen of Mexico, is a serious matter and should be approached as such.
Financing is available for dual citizens, US citizens and Mexican citizens equally. There will be more loan programs for your mortgage broker to offer you.
Both of incorporation and becoming a citizen offer some advantages, but be careful and approach both with the seriousness they deserve.
Have a question about mortgages or buying in Mexico? Send questions to BuyinginMexico@hotmail.com
About MEXLend
MEXLend, Inc. is a Mexican mortgage brokerage that currently represents 20 different lenders offering 300 different loan options in Dollars and Pesos for buyers looking to purchase vacation or investment property throughout Mexico – including two new products specifically for Canadian citizens! In recently announced results based upon post-closing client interviews conducted by Mexico’s largest US lender, MEXLend won the #1 mark of distinction for both client satisfaction and fastest closings for the second straight cycle. MEXLend can be reached at 322-132-7991 (in Vallarta), 917-779-9061 (while in the US or Canada) or go online at www.mexlend.com.
