By Tom Budniak | Good Herald
Mexico has always fascinated Americans. Many Americans toy with the idea of retiring to Mexico all their lives and many of them do take the plunge. As the cost of living in USA is increasing every day and standard of living Mexico improving, more people are opting to retire permanently to Mexico. A retirement destination with sunny climate, beautiful beaches, friendly people, good medical care facilities, stable government, booming economy and world class real estate – Mexico is all this and more. The best part is that one can retire in Mexico and lead a very comfortable life for very less as compared to USA. Retiring to Mexico is not as complex as people think. In fact, Mexico is retirement friendly.
The Mexican authorities offer attractive benefits like a special visa and inexpensive health care for expats who come to Mexico attracted by the warm weather and white beaches. The “rentista” is a special type of non-working visa available to retirees 51 and older. To obtain a “rentista”, an expat needs to provide a letter from the bank or social security administration confirming that he/she receives a certain minimum income each month. Expat Retirees are also eligible for IMSS, medical insurance system. MSS stands for Instituto Mexicano del Seguro Social. It’s a Mexican social security plan that costs $ 200 per year and covers medical, dental, and vision care. IMSS gives you complete coverage including prescription meds except for certain preexisting conditions that have varying time periods before they are covered.
To encourage retirees to buy Mexico Real Estate, Mexican government has made buying property in Mexico for foreigners a simple process. Non-Mexicans can obtain direct ownership of property in the interior of Mexico. However, foreigners cannot own property outright within the restricted zone i.e. property in Mexico within 50 miles of the coast or 100 miles of a national border. Foreigner needs to set up a Mexican corporation which will technically own the land or a beneficial trust called a fideicomiso.
While buying Real Estate in Mexico, an expat make sure to contact a reputable real estate agent to help you get your corporation or trust established in right order. Since, there is no real estate license system for selling and buying property in Mexico, meaning that anyone can be a real estate agent whether or not they are familiar with the intricacies of laws and procedures. Before purchasing property in Mexico, research real estate companies and choose one only after evaluating their experience, references and communication skills.
Since property taxes in Mexico known as Predial is substantial lower in Mexico as compared to USA, buying Mexico real estate makes more sense than ever. You need to pay taxes only on slated sale price every year even if the property’s value increases.
The manifold benefits to retirees such as cheap luxury condos, affordable healthcare system, breathtaking beauty, relaxed atmosphere and rich culture are just what expats look for and get in Mexico. If you’re contemplating about retiring and purchasing home in Mexico, you’re in for an exciting journey.