Home >> Real Estate >> Tax Manifestation - Building a house in Mexico
Search properties
Business Directory Search
Latest Service Provider
SA Newsletter
Tax Manifestation - Building a house in Mexico
An important detail if you are building a house
By Alicia Parra
For those brave souls who are building their home in Mexico, an important part of the process is the Manifestation. This is a notification made before the local property tax department. It signals the termination of the construction and tells the world that the house is ready to be occupied.
All too often, this notification is not made in a timely manner and can cause problems and additional expense, especially when the house is being sold. The Manifestation must be prepared on a printed format supplied by the property tax office and will require detailed information about the lot: measurements, total surface area, etc. and detailed information about the house or other construction being manifested.
Copies of the property tax payments, construction license, plans and the deed to the property must be presented. This same form will request information about the types of materials used in each room and the utility distribution. The value of the construction must be stated in the manifestation. This can either be in the form of a contract with the builder in which the total amount paid for the construction is shown, or through official invoices showing the cost of materials and social security (IMSS) statements on amounts paid for the workers.
This value is highly important since it will establish the basis for tax calculations when the property is sold.
The cost of manifestation is minimal if done in a timely manner. Not only does it establish a date for calculation of capital gain taxes (ISR) upon sale, but also it lowers the property tax rate from that of a vacant lot to that of a residential dwelling which can result in lower property taxes even though the overall value of the property is higher.
ABOUT THE AUTHOR
Ms. Parra is Chief Closing Officer for The Settlement Company. It is the first escrow company in Mexico, and is dedicated to processing the trusts and title transfers of Mexican real estate for foreign buyers and sellers for properties located ANYWHERE in Mexico. The company frequently sponsors seminars on the various aspects of real estate ownership in Mexico and holds membership in AMPI, NAR and FIABCI and PROFECO Certificate 00063/96 E-Mail:
This e-mail address is being protected from spam bots, you need JavaScript enabled to view it
Web Site: http://www.settlement-co.com
Tradex exhibitions is Mexico's leading organizer of trade and consumer exhibitions with a portfolio of over 10 events. They excel in creating high profile, highly targeted business and consumer exhibitions, where buyers and suppliers can come together to do business.
Vacational real estate in Mexico registered a massive spike in 2007 by growing 46.6 percent and all indicators point to 2008 being an even better year for the sector.
According to an industry report commissioned by the vacational rental giant RCI, last year Mexico made up 69 percent of holiday homes that were built in the region which comprises of Mexico, Central America and the Carribean.
That figure included 44 master plan developments in diverse destinations all across the nation. Cancun and Los Cabos were the top two cities with the biggest tally of new vacational real estate registering 200 and 80 percent growth respectively, the report stated.
Playa del Carmen is undoubtedly the jewel in the Riviera Maya which stretches from the world famous resort of Cancun to Tulum and the Sian Ka'an biosphere reserve. Originally a humble fishing resort, tourism in Playa del Carmen began as a passenger service to the nearby island of Cozumel which is a hotpsot for scuba diving in the Yucatan Peninsula.
The biggest appeal of corporate housing or executive suites is that it's a home from home. A lot of business executives who come to Mexico are sometimes here on month-long stays and find the experience of staying in a cramped, sparsely-furnished hotel room that is located on the outskirts of a city unappealing.
Apartments, houses, duplex, horizontal condos or townhouses are all available for sale in Mexico. Each has its own advantages and disadvantages as a home.
If you had asked your savvy holiday-maker a decade ago what fractional ownership is he probably would have drawn a blank reaction. Fractional ownership is a very smart method of vacation home ownership. Has become increasingly popular in the luxury market, attracting public who want to own exclusive properties of the highest quality and service, while paying only for the time they plan to use.
Warning: mysql_fetch_array(): supplied argument is not a valid MySQL result resource in /home/emexpert/public_html/modules/mod_advertise.php on line 46
