Viva Mexico and the Peso, which is the countries currency.
Most to all real estate listings are advertised in USD and funds are transferred into a secure USD trust account with escrow.
The most important thing for any buyer/seller to know is that the title reflects the exchange rate of the day of closing and translates the USD value into pesos. This peso value stated in your title is the basis for determining capital gains tax for the Seller and determining the tax base for the Buyer.
The peso has devaluated to approximately $18 MN to $1USD therefore if you purchase a property for $100,000.00USD X $18MN = $1,800,000.MN that now becomes your tax base for the day you sell.
Many Seller’s purchased their properties not so long ago when the exchange rate was at $10MN to $1USD therefore a Seller’s base then becomes $1,000,000MN and the capital gains tax utilizes this value.
Here is a graph of the exchange rate for the Mexican peso over the last 10 years.
As you can see it is at an all time low!! That translates to a greater Pesos value on the purchase of your property.
Now is the time to take advantage and maximize your purchase!
By Lisa Welsch, Coldwell Banker Riveras, firstname.lastname@example.org
612-140-1414 Mex Cell, 858-764-0605 USA Line