Owning Property
- A Fideicomiso (trust) is required to own property near the beach.
Foreigners cannot hold property near the Mexican coast in their name. To
handle this problem, the major banks provide a trust service for which the
buyer pays an initial fee of about US$2,000 to $4,000 and annual fees of $150
to $500, depending on the price of the property and upon the bank. These are
very rough estimates; the fees change all the time. The bank then holds the
deed in trust for a specified time. This can be renewed or terminated for a
fee.
The banks examine the legal paperwork very carefully, hence the usual Acta de Posesión that most of the natives have (the unregistered document issued by a local elected commission) is not acceptable to the bank. Nor is the somewhat more formal Escritura Privada where the property has at least been registered with a county judge. Only the Escritura Publica, a grand document researched and written by a Notaria Publica, is acceptable. Only with the Escritura Publica are you sure that you have a free and clear title. Since there are many stories of land being sold multiple times, in my opinion the Escritura Publica, held by the bank in a Fideicomiso, is well worth the money. More about this.
An FM2, which also comes in different varieties like the FM3, allows
the person to apply for Mexican citizenship after about 5 years. It is hard to
get here without holding an FM3 for 3 to 5 years first. However I know
of at least 2 people who hired Mexico City lawyers to get FM2s before entering
Mexico. After receiving the Mexican citizenship (you don't lose US or Canadian
citizenship) one can work without permission. Only the right to vote is
withheld.
Many people here still use their 6-month tourist visas, driving to
the border to renew twice a year. However, now immigration at the border is
not automatically stamping the visa for 6 months. Most frequently it will be
for a month or two or even just a few weeks, causing much time to be spent in
the local immigration office trying to get extensions. Proof of income is
required for renewal.
Proof of income (or money in your pocket) is required in all cases
above. Some people have had to xerox all their travelers cheques! The amounts
vary. Several years ago the FM2 and FM3 fees, were about US$1,800 and $1,000
per month respectively for the head of household and one-half that for each
dependent. The fees increase every year. However, if you bring your Escritura
Publica or Fideicomiso and a copy, these amounts are cut by one-half. The
easiest thing to do is to call migración at a port office or at an international airport and ask what the
requirements are. (Only Spanish is spoken unless the Delegado, who often
speaks English, is in.)
When you know the required amount for 1 month, go to the local Banca Bital
(now called HSBC) or Banamex (Bital is more accommodating and their people
usually speak a little English) and buy an Inversión for 1 month in this
amount. Take this document and a copy with you to migración. When the
Inversión (a CD) matures, you can cash it. You only need to buy it again when
you renew your FM the following year. This was working; I can't promise for
the future. In the past people brought bank statements or certified letters
from their bank, but now the office is saying that they want people who have
the FM3 or FM2 to demonstrate pesos.
This changes frequently. They now may only accept proof
of an inversion (kind of a CD in pesos) at a Mexican bank. (HSBC is the
best.) A regular bank account in pesos for the same amount is O.K., too, but
you don't receive interest and there are very hefty fees, generally.
Extending a tourist visa may not require holding pesos; you may get by with
travelers checks.
For your car, (Customs, not Migración)
In your letter you will probably need to include copies of your entry
visa and your new visa, if any, your passport, Asunto: Importación Temporal,
and Certificate of Title (Certificado de Titulo).
You may also need these papers for the border crossing as well. Be sure
you have a credit card for getting your car across the border. You will also
need insurance that is valid in Mexico. Resources, in the unlikely event that you have a problem:
Health is probably your most important concern, both mental and physical.
Although we have reasonably good private clinics and hospitals, the modem
medical advances haven't come to all of Mexico. Most of the urban areas of Veracruz have good
hospitals, and even hyperbaric facilities, but it's aa long trip from many more rural areas.
f
To live In Mexico full time, you must get an FM-3, a "no Inmigrante" visa,
or a FM-2 "Inmigrante restista" visa. You are not allowed to reside in Mexico
with the FM-T tourist visa you came in with. There are certain requirements
that must be met with each type of document, and it is best to talk to your
Immigration official to find out exactly what they are. Don't expect your
immigration official to speak much English, so if you don't speak Spanish,
bring along an interpreter.
Couples considering retirement to Mexico should make sure both partners
feel the same way. If dad's hobby is fishing, but mom's is shopping in
Bloomingdale's and Nieman Marcus, Papantla may not be her kind of town. You
should be adventuresome, flexible in your lifestyle, interested in learning
new things, and open to exploring a different culture. You should be able to
make friends easily, study the Spanish language, and be able to be separated
from your family and friends in the U.S. Patience and tolerance is a must.
Everything moves slower here, and "type A" personalities don't fit in. You
will be a "minority" race here, and you'll have to accept all the differences
that being a gringo entails.
You must be financially stable. It's difficult to get work papers here, and
even more difficult to make a living. Tourist season is from November through
April. After Easter, tourist areas look like ghost towns (except for major holidays). The heat and
humidity can get pretty oppressive for some people, especially when there are
other health problems.
You must be a free spirit, a self starter, confident and independent. You
must be open minded to a different way of life, but "street-wise" enough not
to be taken in by some fast talkers. (if you've got some money to invest,
there'll be plenty of folks around who'll take you in as their "business
partner.")
There are so many things that we take for granted in the states, such as
paying bills by writing out a check. This is a cash economy. You pay your
phone bill, electric bill and water bill with cash, in person, standing in
line. You wake up one day and the electricity or the phone has been shut off
because you didn't pay the bill (that you haven't even received yet). The
drivers and the driving "laws" are different. (I use the term "laws" loosely,
because even though there are laws and rules of the road, abiding by them is
arbitrary.) There are often no modern conveniences, like air conditioning.
Dinner is at a different time than back home, usually after 8 p.m. You can't
tune in to a radio station in English. Unless you have a satellite dish, all
TV programs are in Spanish. Car repairs are a royal pain. You can't find your
favorite food at the supermarket. You planned to have pork chops, but the
Commercial Mexicana doesn't have any. If you have big feet, there are no shoes
to fit. (So who wears shoes anyway?) You hold a dinner party and everybody's
late. And so on.
In the past 10 years since I've lived in this country, I've seen many
foreigners come and go. In fact, I've thought about going back a few times
myself! Before you make that final decision to change your lifestyle, research
it carefully. If possible, spend some time here. Ask questions of the gringos
already living in Manzanillo, and start making plans for a new and exciting
future!
Susan Dearing
A number of foreigners living in Mexico rent out rooms in their homes to
visitors. We hope to add them to our list of advertizers in the near future. You can find
the Real Estate page at re.html.
First he filed a criminal lawsuit in Cihuatlán, bogus, which he eventually
lost, then he filed a civil suit in Autlán where they are a very old respected
family. Am still fighting that. Learned he has problems with numerous other
people who have ventured into business dealings with him, after I was already
committed. The first I knew of the civil suit, they came and embargoed my car,
all the papers in Spanish; I understand this is illegal in itself. Then the
judge eventually signed an order saying he had to return the car, which he
refused, and I just keep getting one runaround after the other, designed to
run me out of money through legal fees, which he has done, my lawyers have
disappeared from the scene, I fled the country on advice from a thirty-year
American consulate veteran who says they have a file a foot thick of Americans
who were killed or just disappear when they appear to have the upper hand or
are fighting lawsuits.
I have Mexican friends there still trying to fight this thing, but I hold
out little hope, and basically lost everything, over something I have all the
receipts and licenses, etc. saying I complied with everything, by virtue of
the fact they can keep presenting roadblocks until you eventually give up and
get out and they win by default. I love Melaque, and that is the saddest
part, but I thought people considering business there should be aware. To all
of the people who frequented my establishment and the international band of
Musicians who jammed there so often, thank you for a wonderful two years. I
can be contacted at mailto:Loca%20judy@aol.com. Hasta luego
to all!
Judy
Gracias
Cristina Gomez
After four renewals of the FM-3 visa, most foreigners, especially those who
live in Mexico, get an FM-2 visa which can only be done in Mexico. As a
resident of Puerto Escondido, that meant a trip to Huatulco annually. Now, the
immigration service is sending an agent periodically to Puerto to process the
renewals. There are forms to be filled out, a fee to be paid and copies of
bank statements, properties, passports to be made. The actual processing is
free, although for many years in the Huatulco office there were routine,
illegal demands for fees.
After four renewals of the FM-2, a foreigner may apply for immigrant
status. Being an immigrant confers "all the rights and responsibilities of a
Mexican" MINUS the right to vote and the right to own property close to the
coast or the border. Having arrived at that level, the only practical
difference I notice is that I don't have to go through the annual visa renewal
process which saves me money and, more importantly, a lot of grief. The FM-3
can be accomplished easily. The FM-2 may require the services of an
immigration lawyer, especially if the foreigner isn't fluent in Spanish. I
used a lawyer for both the FM-2 and the immigrant status steps, although I'm
fluent in Spanish, because of the tremendous amount of paperwork. Living in
Puerto Escondido would have required various trips to Oaxaca or Mexico City,
and it was worth it to me to pay an expert to get it done correctly and in a
timely fashion.
The last step is to become a Mexican citizen. For those who wish to become
Mexican citizens, there is an application process and, of course, an exam as
is required in most countries. According to a U.S. embassy official, dual
citizenship may be a reality within as short a time as two years. He
emphasized that a U.S. citizen who becomes a Mexican citizen will not, under
any normal circumstance, lose his or her American citizenship--even if the
Mexican government requires that the U.S. citizen relinquish his or her
passport. A new U.S. passport will be issued immediately.
Under the FM-2 and FM-3 visas, a foreigner may keep his or her car
in Mexico. The car's permission runs with the period of the visa extension.
After renewing his or her visa annually, the foreigner must write a "solicitud
" (a letter of application in Spanish) asking permission to keep the can
another year in Mexico, make copies of the renewed visa and copies of the
car's title and entry papers and send all that off to a state office of
Hacienda (the tax revenue service). They review the application and
send the car owner an official letter which must be carried at all times in
the car. By means of that "oficio", the car is legally sanctioned for another
year in Mexico. A word of warning: When one reaches the status of "immigrant",
it's no longer possible to keep a foreign car in Mexico. No one mentioned that
to me, and I was surprised and dismayed to learn that I'd have to drive my '93
Quest back to the States, sell it, and return to Mexico to buy a car here.
I've just bought a car here, Tom. I haven't had to license it just yet, a
process I understand to be exorbitant and subject to "requests" for extra
fees. The licensing procedure may warrant another note to you.
Sheila Clarke
Visas
An FM3 allows the person to bring in household items and to keep a
car with foreign plates without having to drive back to the border every 6
months. There are different types of FM3s. Some give permission to work for
specific companies, others to work at specific professions or businesses.
These can be very difficult to get. Usually people apply for the FM3
Rentista which is for retired people. It is the easiest to get. If
possible, it is better to apply for it at a big Mexican Consulate in the
person's home country. It is much faster and easier. Be patient with the
paperwork; this is Mexico. You'll get used to it after awhile. It is difficult
to be explicit about the details because they change depending upon who is in
charge at the immigration office that day, and the laws change frequently as
well.
Other Documents You Should Have
Address:
Administración Local Juridica de Ingresos
Lic. Jose Guadalupe
Mesta Guerra
Armenta y Lopez No. 208, Centro
Oaxaca, Oaxaca
US Consul Mark Lease, Oaxaca: 01 951-43054. M-F 9:00 -
2:00PM
Embassy, Mexico DF: 01 5-21100-42
Many other books have been written about retiring in Mexico, and I would
hope that before you take such an important step, you'd do a lot of research.
Underworld Scuba
http://www.divemanzanillo.com/
Cost of Living
A number of people ask about the cost of living in Mexico. You don't get a
straight answer because ... it depends. Some people can live very
economically because their basic necessities, food (unprocessed) and housing
(away from bustling tourist or industrial locations), are quite inexpensive.
However, if your basic necessities include an automobile and airconditioning,
then your cost of living is dramatically higher. Gasoline, automobiles,
electricity, and anything with an electrical cord are expensive in Mexico.
How Do I Get More Information About Living In Mexico?
Well, probably not by asking me since I havn"t been a Mexican resident for
seven years or so. But you can also ask questions on the Visitors' Comments. A number of
the participants live in Mexico.
Visit Cozumel
Looking
for a great get away in Mexico?
Check out what our Cozumel
Rentals have to offer! Our beautiful Cozumel villas with
leave you breathless. Traveling with family? See our Cozumel condos!
Comments
Running a Business in Mexico
Hello Tom! Just want to warn people who want to open businesses there. I
have had a hair-raising year and experience with a Mexican landlord and my
restaurant. Seems, in a nutshell, he saw my business taking off well, so has
done everything in his power to run me out of money so he can take over.
Locajudy@aol.com
July 2000
Living in U.S.
Leyendo su articulo de Living in Mexico me parece que no tiene idea de lo
que pasa cuando una persona extranjera pretende vivir en los Estados Unidos,
esto en referencia a su comentario "This is Mexico" francamente estoy de
acuerdo en que los tramites y oficinas de Gobierno en Mexico muchas veces
dificultan los procesos pero creame yo soy Mexicana y resido en San Diego, Ca.
y al hacer mis tramites con la oficina de inmigracion tuve exactamente los
mismos problemas a los cuales se enfrentan ustedes al querer vivir legalmente
en Mexico, los oficiales son groseros y no siempre hablan español. Yo creo que
lo menos que pueden hacer las personas al ir a vivir a cualquier lugar del
mundo es aprender el idioma natal.
mcgrosse@geocities.com
July 1999
Immigration to Mexico
Many foreigners want to come to Mexico for periods longer than those
permitted under the typical tourist visa. For those who are interested in
spending more than three months in Mexico year after year, it's wise to get an
FM-3 visa which will permit one to enter Mexico with household goods and
carries with it permission to stay for the one year after which the visa is
issued. The FM-3 visa can be obtained from a Mexican consulate or embassy in
foreign countries. Although the FM-3 can also be gotten in Mexico, it is many
times easier to get it in one's own country. Each year the visa must be
renewed. Again, that can be accomplished outside Mexico. An applicant must be
prepared to show copies of his/her birth certificate, a bank statement and
present a letter stating that he or she is in good standing legally in his or
her home city or county. There is a fee which increases slightly each year. In
1992, it was $60 USD, but undoubtedly is higher now. A call to the nearest
Mexican consulate (in many major cities) or embassy will yield all the
document and financial requirements.
Puerto
Escondido
palomas@main.resultsp.com.mx
July 2000
www.johnzap.com John Williams:
john@johnzap.com