In interior areas such as San Miguel ownership is a relatively simple process similar to real estate transactions in the U.S. Buyers of real estate own property, fee simple, out right, and by law have the same rights as Mexican citizens. Only in border zones and costal regions is purchased real estate actually held in a trust by a Mexican bank.
One major difference from real estate transactions in the U.S. is that mortgage money is not as prevalent in Mexico. A few property owners will accept financing, but even then, rates can be quite high. However, some U.S. lenders have entered the San Miguel market. Please contact me for more information.
Several major insurance carriers from the U.S. will offer title insurance on property purchased in Mexico.
Capital Gains taxes can be applicable to both Mexican and foreign sellers of real estate. However, in certain scenarios sellers of real estate can possibly be exempt from taxes on capital gains. If the property is a primary residence or the seller of a property is a foreigner who holds FM-2 documentation, then a seller's exposure to capital gains can possibly be limited.
Several recommended lawyers in San Miguel de Allende can explain the process in greater detail.
Depending on the sale price of a property-closing costs for a buyer could be as much as 2% of a sale price. These closing costs, in general, cover: a permit to acquire property in Mexico, a property evaluation, a tax on the transfer of title, the filing of the deed, and lawyer's fees.
Property taxes in Mexico are nominal, a drastic difference for owners of property in states such as Texas or California. On a $300,000 property an owner can expect to pay between $400-700 usd per year.