If you are interested in visiting, living or investing in the Baja area our English, French and Spanish speaking team can help you with any legal services you might need, such as:

Real estate legal services: if you would like to invest in Los Cabos we can help you throughout the entire purchasing process. This includes reviewing and negotiating offers and drafting your agreement to purchase. We also perform due diligence on the property to make sure the seller is authorized to sell and the title is clean without liens and encumbrances.

Contracts and Escrow Services: we recommend you ask about our escrow service to ensure your funds are safe and only distributed according to the agreement. Our trust accounts are held in a Canadian bank and are protected by liability insurance of $1,000,000 per account.

Mexican tax laws: we are available to help you understand the Mexican tax system and if are thinking about opening a business there we can give you all the latest information on the required payment of taxes and duties.

Immigration legal services: If you are considering living, retiring or investing in the Los Cabos area we can help you manage your immigration status in Mexico.

Investing in the Baja peninsula is a very attractive proposition. With 240 days of sunshine per year, an average daily temperature of 75˚F/25˚C, unique scenery where the desert meets the ocean, plus its proximity to the United States and Canada, this is an ideal place for investing in a retirement or second home. MexLaw offers you the protection and assistance you need when making such an important decision, taking care of all legal aspects of the process so you can enjoy your new property in Mexico.

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Please note: While the U.S. Embassy, Consular Generals, and Consular Agents are slowly beginning to resume normal operations since the outbreak of COVID-19, you should always check the U.S. Embassy’s website for updated information about their operations. 

Do I need an appointment?

It depends on whether you are going to renew at your closest U.S. Consular Office or at the U.S. Embassy in Mexico City.

The U.S. Consular Agents and U.S. Consulate Generals normally require an appointment. The U.S. Embassy in Mexico City recently began a new program called the ‘Adult Renewal Drop-Off Program’ which does not require an appointment for adult renewals of 10 year passports.

For links to the U.S. Embassy in Mexico City and the list of Consulate Generals, please click here for additional information. For a list of Consular Agents, please click here.

What do I need to bring?

According to the U.S. Embassy’s website, you will need to bring:

• A completed & signed form (DS-82).
• A color 5×5 cm photo taken no more than 6 months ago.
• The fee payable in U.S. dollars or Mexican pesos at the posted exchange rate.
• Your current passport
  • Keep in mind that they will have your passport for anywhere from 4 to 8 weeks.
  • You should make a copy of your passport photo page & any visas you may have in your old passport

How will I receive the new passport?

Depending on the office, you may be required to pay to have your passport sent DHL or FedEx to a Mexican address. If you are worried that you won’t receive it to your Mexican address, you can always have it shipped to your local DHL/FedEx office.

How long will it take?

It can take up to 4 to 8 weeks to receive your new passport.

As a reminder, you should always refer to the U.S. Embassy’s website for the latest information.

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Fideicomiso (Bank Trust)

All foreign individuals purchasing property in a restricted zone (within 100 km of the Mexican border or 50 km from the coast) must purchase the property using a fideicomiso (bank trust).

Fideicomisos should be considered by foreigners who:

Will use their property for personal use (will not receive rental income).
Are considering obtaining Mexican residency.
Will rent their property for income and have Mexican residency.

If you plan on renting your property for income, you need to consider your Mexican tax obligations. One of the requirements for anyone earning income in Mexico is that you must declare any and all income with the tax authorities. To declare taxes, you must register with the authorities and obtain a Mexican tax ID known as an RFC. RFCs are only available for foreigners with Mexican residency, Mexican citizens, or Mexican corporations.

Some property owners without residency who rent their properties held in a bank trust do so via online rental companies such as AirBnb. However, without an RFC, the online rental companies are required to retain 36% in taxes.

If you are planning on renting your property but not planning on obtaining Mexican residency, you may want to consider the next option.

Mexican Corporation

Another option for foreigners buying real estate is to open a Mexican corporation. By creating a Mexican corporation, foreigners can avoid the fideicomiso process as the property would be purchased by the Mexican corporation.  Mexican corporations should be considered by foreigners who:

Plan to rent their Mexican property for income
Plan to purchase more than one rental property
Have no plans to obtain Mexican residency

When renting a property owned by a Mexican corporation, the corporation will be issued a Mexican tax ID (RFC) and make monthly income declarations. There is a lot more involved in owning a Mexican corporation so it is important to discuss this option in detail with a qualified Mexican attorney.

Making a Decision

Whether renting your Mexican property for income or using it as a vacation destination for you and your family, it is important to know the options available to you. It is also important to understand which option best fits your needs. You should always have a professional attorney discuss and review your options with you. To learn more about which option is best for you, please contact the Mexican legal team at Mexlaw. Our experienced team of professionals is best equipped to help you make the right decision for your purchase.

For information, please contact us here.

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Closing Costs: What to Expect?

You should expect to pay the following fees when closing on a property in Mexico:

Notary Fees

In Mexico, any legal acquisition of property must be administered through a Notary. A Notary (Notario Publico) in Mexico is an experienced lawyer, selected and appointed by the Mexican Government. All real estate purchases must be registered with a Notary, and they are legally responsible to ensure the property’s title is clear and properly recorded with the public registry. The fees paid to the Notary are based on the purchase price of the property.

Bank Trust Fees (Fideicomiso)
Bank trust fees can vary by financial institution and depend on whether you are doing a transfer of trust or opening a new trust. The fees quoted will also include the first year’s trust payment.

Legal Fees
Legal fees paid to Mexlaw will include the closing services provided by our experienced team of Real Estate Attorneys. For a complete list of our services, please visit our Real Estate Legal Services section.

Taxes & Duties
The taxes and duties paid at the time of closing include:
o Registration of the title deed at public registry
o Transfer Tax
o Government Closing Documents & Appraisal – these are required by law and based on the purchase price of the property.

Taxes & Duties: Why so High?

Many buyers are surprised to see that the taxes they pay at the time of closing are much higher than they are used to paying in the United States and Canada. The reason is the Mexican Government collects a large percentage of the property taxes at the time of closing.

While this may seem like a lot to pay, you will be pleasantly surprised when it is time to pay your annual property tax, known as the predial. Annual property taxes are very low in Mexico as the tax is calculated at a fraction of what your property is actually worth. Additionally, many municipalities offer significant discounts (up to 25%) if you pay early. Annual property taxes are due in January so discounts will be offered starting in December.

For additional information about closing costs, property taxes, and Mexican real estate services, please do not hesitate to reach out to our team of professionals at Mexlaw. We would be happy to provide you with a free Estimated Closing Cost for your property.

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That brand is what will ultimately generate in the public that awareness of quality of the product or service that is being offered.  It will make a different impression from the rest of the products of the competition.

Therefore, the registration of the trademark and its corresponding logo is an important and necessary process, when introducing a new product or service in the market or entering a new market with an existing brand. The object is to obtain exclusivity by its use, and thus prevent others from exploiting it.

Otherwise, anyone could present to the public similar products or with characteristics so identical that they could generate confusion with consumers and weaken the effort that was invested in the brand.  This will correspond in a financial loss for the business.

In Mexico, the regulatory body called the Mexican Institute of Industrial Property (IMPI), has the legal authority to administer the country’s intellectual property system. This means that it will be responsible for registering the trademarks filed and having a global registration that prevents two trademarks with similarities that could lead to confusion.

Trademarks are registered with IMPI by filing the appropriate documents with samples of the trademark and logo and by providing as much detail as possible as to color and letter font or size. An element that is equally important is a comprehensive description of the product or services that is associated with that trademark. Vague or ambiguous terms will lead to unnecessary contestation or, worse, impossibility to defend the trademark in the event of a contestation. For example, a client recently registered (on their own) a trademark in Mexico associated with “swimming pool cleaning and maintenance”.  Within days they received multiple notices of contestation from numerous competitors attempting to defend their trademarks as the service was so vague that it may infringe on their trademark.  MexLaw intervened, settled all the claims by withdrawing the vague trademark application and filing a new one with a more precise specification of the product.  This represented unnecessary delays and expenses to the business.

Another particularity of filing a trademark application with IMPI is the speed with which they are considered and approved. This indicates that it does not necessarily do a thorough examination and review of its registers to identify potential conflicting names.  Therefore, it is up to the trademark owner to monitor applications and quickly file oppositions in the event of possible conflicts.  IMPI will respond with an initial reply (whether confirming or reject the complaint) and then the trademark owner must enforce that decision by taking legal action to have counterfeited products destroyed or removed from the market.

Finally, another difference with Mexican trade names (name of the corporation) and those in other jurisdictions is that the corporation’s business name does not benefit from exclusive protection as is the case elsewhere in North America.  For example, a client recently incorporated a Mexican subsidiary of its American counterpart with the same name.  Several months later it became aware that a Mexican Company registered a trademark like its Corporate name.  All attempts to have this trademark cancelled or modified failed as Corporate names in Mexico are not trademarks and therefore do not benefit from any protection.  Therefore, it is strongly recommended to register a trademark although the name of the corporation is similar to the trademark being registered.  Especially if the product or service provided is associated with that name.

It is therefore recommended that if you intend to establish a business in Mexico, and start making use of a trademark, consult an expert lawyer on the subject. They can advise and support you in the registration process, which will provide legal certainty in its use, and avoid the possibility that your trademark may violate the rights previously obtained by another person. Once the registration has been validly obtained with IMPI, it will entitle you to the exclusive use of the trademark, which will generate protection that can be exercised through civil and criminal actions when any third party infringes that right.

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MexLaw is focused on providing legal services to expats who are visiting, living or investing in Mexico.

Our English, Spanish, and French speaking team can assist you in any legal matter. Some of our legal services include:

• Real estate services
• Seller services
• Escrow services
• Immigration
• Business and corporate law
• Mexican tax laws
• Investments and financing
• Family law
• Criminal and civil law
• Personal injury
• Estate planning

Real Estate Legal Services

Looking to invest in Merida? Consult with MexLaw before you sign anything. We will assist you throughout the entire real estate purchase process. Our experienced lawyers will review and negotiate offers and draft your agreement to purchase. Once the offer is accepted, we perform due diligence on the property to ensure the seller is authorized to sell and holds a clean title without liens and encumbrances. Choose a law firm that offers you a title guarantee on your investment.

From making an offer to closing, we accompany the buyer and ensure the title is recorded in the public registry and provide the deed. Purchasing real estate in Mexico can be a challenging endeavor, but with the right legal team by your side, it is a safe and secure investment.

Contracts and Escrow Services

Whether you are purchasing pre-construction property or renovating one of Merida’s colonial homes, it is highly recommended you consult a lawyer to prepare a construction contract to protect you against construction liens or disappearing contractors.

It is also advisable you inquire about MexLaw’s escrow service to ensure your funds are secure and only distributed according to the agreement. Our trust accounts are held in a Canadian bank and are protected by liability insurance of $1,000,000 per account.

Immigration Services

Living, retiring, or investing in the Yucatan, we can manage your immigration status in Mexico.

Corporate law and Business Services

Expats who are considering renting out their Merida home, operating a B&B, or investing in another business should consider creating a corporation, and our legal experts can help you determine the financial pros and cons of incorporation. The most common are corporations and limited liability companies, and a professional legal team will determine which option is best for your business and which will give you the most operational and financial benefits.

Accounting and Mexican Tax Laws

MexLaw and our partners at Mextax are available to help you understand the Mexican tax system, assisting business owners in the management and payment of taxes and duties required to operate a business.

Labour laws

We are here to help business owners understand the strict labour laws of Mexico, and your rights, and obligations as an employer.

Criminal Law

In the event you are arrested in Mexico, you must have a legal defense specialized in the new penal system to ensure a technical defense and dedicated to resolving your legal situation. You want a legal team that succeeds whether it is a criminal or civil case.

Personal Injury

The Personal Injury team at MexLaw are dedicated to obtaining a fair and quick compensation for injury victims recovering from tragic or inconvenient accidents. Whether your case results from a vehicle accident, product liability, medical malpractice, premise liability (slip and fall), or wrongful death, we are dedicated to representing people whose lives have been devastated by the carelessness of others. MexLaw has recovered more than one million USD in settlements for our clients.

Our professional standards are among the most recognized and respected internationally.

If you have any questions regarding any legal matter in Merida or the surrounding area, please email us at contact@mexlaw.ca

The post MexLaw’s legal services are now available in Merida! appeared first on MEXLAW.

The new regulations will allow a safer, and more reliable option for users of public transportation. Regulated prices and safety are currently the most significant concerns for the public using taxi services; digital platform providers can relieve some of these apprehensions.

The Institute of State Mobility will be established and take on the responsibility of planning and the execution of mobility policies. Also, they will monitor to ensure monopolistic practices are avoided. In all cases, the providers of transport services will require a permit issued by the institute and comply with certain obligations to ensure the safety of users.

The new law also gives priority to pedestrians, people with disabilities and people with limited mobility, cyclists, and users of public transportation.

Translation of the official communication from the Gobierno de Quintana Roo page:

https://www.facebook.com/notes/gobierno-de-quintana-roo/el-congreso-del-estado-aprob%C3%B3-la-ley-de-movilidad/593322017707922/

The Mobility Law approved today by the State Congress places people as a priority.

* Mobility is recognized as a human right and fundamental for the effective movement of people.

* Orders components related to mobility, transportation, roads and urban signage.

* Establishes the hierarchy of mobility: first pedestrians, then cyclists and then public transport    and private transport.

* The Mobility Institute is created as a decentralized public body.

* The Integrated Public Transportation System is created to regulate:

1. The infrastructure for mobility and its use.
2. The classification of transport and its rates.
3. The concessions and the permits.
4. The Massive Public Transport System.
5. The service through digital platforms.
6. Parking lots, stations and terminals.
7. Licenses and driving permits.
8. The Public Transportation Registry.

The Integrated System of Public Transport covers the transport service contracted through digital platforms, public service, and private service.

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MEXLAW, the only Canadian law firm in Mexico with offices in Cancun and Playa del Carmen, has been providing reliable and professional legal services to individuals who wish to invest or simply enjoy the Riviera Maya.  We are dedicated to offering a secure and familiar environment for our clients to invest or live here.   As part of this commitment, MexLaw has developed a Canada-wide information campaign consisting of seminars, conferences and advertising in which we present video testimonials from individuals who are already living here.  In these testimonials they describe in their own words the quality of life they enjoy here.

We wish to thank our Canadian francophone friends for joining us recently for breakfast on the beach to candidly talk about their experiences of living and investing in this splendid destination. The testimonials collected are an invaluable tool to provide confidence to residents of Canada, the US and Europe to choose to invest or live in the area.

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