To establish permanent residency in Mexico, we refer to the immigration requirements first:
Residency
You first apply at the nearest consulate in your location. You prove you have enough income to take care of yourself or you have purchased a property worth a certain amount of money.
Once you have satisfied the requirements at the consulate, you have 30 days to come to Mexico and finish your application at the Immigration office here.
With this permanent residency card, you can live and work here, as well as open bank accounts, and acquire credit cards so you establish credit here.
The permanent residency card here is like the green card the USA provides foreigners who want to work and live there. A similar residency status is available in Canada. End of chapter 1.
Sometime later, you decide you want to sell this property and find another one, or you must move out of Mexico for other reasons.
If you want to achieve the best results in your sale, use a professional real estate agent, and decide if you want to apply to become a fiscal resident in Mexico.
The property you are selling needs to show utility bills with one name of each of the sellers.
Tax Resident
If you want tax status, the tax number you will receive needs to have an address that is not the property you are selling.
Your fiscal SAT status and your permanent residency card give you the most status in the country for a non-citizen.
With your permanent visa and fiscal tax status (SAT), you have more tax- saving options than being a temporary resident and a tourist.
An RFC tax number accompanies a letter (Constancia) explaining your tax status. The address you register on SAT should have an address different from the home you are going to sell. And you need a utility bill to prove this.
The current law says you must be fiscal resident with an RFC for one year.
Important: You register for residency at Immigration. You register in the tax system in SAT.
IMPORTANT: According to law, Sellers are responsible for statement in their selling deed that the notary writes, that you are declaring that you are a tax resident in México.
Note: This process of being eligible to be a Mexican fiscal resident is one tax strategy. There are other strategies available to you. Ask the closing coordinator or have your attorney negotiate with the notary.
Remember that your basis and gain are all related to the sales price, which will also be recorded legally as Mexican pesos, not US or any other currency. You can buy or sell in foreign currencies, but the transaction is recorded in the currency of the country where you are buying property. This is important for you to understand.
This article is based upon current practices, and my personal experiences. I recommend that each potential buyer or seller of real estate conduct his own due diligence and review.
