Schools in Cabo San Lucas, Mexico

A common question I get from families with school aged children exploring the reality of living in Mexico… is what about the schools?  How does education work in Mexico?  What kinds of schools are available in Los Cabos?

Schooling in Mexico is governed by the Secretariat of Public Education (Spanish:Secretaría de Educación Pública). Education standards are set by this Ministry at all levels except in “autonomous” universities chartered by the government (e.g., UNAM). Accreditation of non-public schools is achieved by a compulsory approval and registration with this institution.

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The 1917 Constitution provides that training should avoid privileges of religion, and that one religion or its members may not be given preference in schooling over another. Religious instruction is prohibited in public schools; however, religious associations are totally free to maintain private schools, which get no public funds.

In Mexico, basic education is typically divided in three steps:

Primary School

The terms “Primary School” or “Elementary School” usually corresponds to primaria, comprising grades 1-6, when the student’s age is 6 to 12 years old. It starts the basic obligatory schooling system.

In Spanish, the general term for “school” is escuela, but in Mexico, it is common to use escuela for state-owned schools, which are the majority, while the term colegio is kept for non-public schools, usually charging higher tuition fees.

Junior High

The terms “Junior High School” or “Middle School” normally corresponds tosecundaria, comprising grades 7-9, when the student’s age is 12 to 15 years old. It is part of the basic compulsory education system; it follows primary school, and comes before proper “high school” (preparatoria).

At this level, far more specialized subjects may be taught similar to Physics and Chemistry, and World History.

High School

The term “High School” (United States)) generally corresponds to preparatoria orbachillerato, comprising grades 10-12, when the student’s age is 15 to 18 years old. it must incorporate a national subject at least.

Preparatoria customarily consists of 3 years of schooling, divided into six semesters, with the first semesters having a typical curriculum, and the latter ones making it possible for some degree of specialization, either in physical sciences (electricity, chemistry, biology, and so on.) or social sciences (commerce, philosophy, law, etc.).

The term preparatoria is most frequently used for institutions which provide a three-year schooling program which “prepares” the student with common know-how to go on learning at a university. In contrast, the term bachillerato is most often used for institutions which provide vocational training, in two or three, so the graduate student can get a job as a skilled worker, for example, an assistant accountant, a bilingual secretary or an electronics technician. are to do what they went to school for and what they want to be like to be a teacher, secretary, or anything else.

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Los Cabos has no shortage of schools each public and private.  Rest assured, there are definitely great options when choosing education in the Los Cabos area.  And, not every family has the same considerations or goals when determining what is best for their children – even children within the same family will have different considerations in choosing the right education path.  

1.  What are your requirements?  Location, activities after school, sports, curriculum, hours, special needs, etc.

2. Do some research as to what is offered.  Most schools have websites and Facebook pages — these are schools that made our list to explore initially:

  • Collegio Papalotl Nursery – High School located in El Tezal Colony (624) 14 44311
  • Baldor Kinder – High School located behind Home Depot (624) 10 43929
  • Colegio El Camino Nursery – High School located in the El Pedregal Colony (624) 14 32100
  • Colegio Amaranto Nursery – Primary (6th grade) located in the El Tezal Colony 624 14 58700
  • Instituto Peninsular Jr. High & High School located in the El Tezal Colony (624) 10 43455
  • Centro Escolar Picacho Preschool – High School located at KM 24.8 in the corridor (624) 14 45595

3. Plan a visit to the schools – and take the kids.  Most schools will even allow children to attend a day to “shadow” so you can try it out and really have the children experience a day.  Then make your decision.

It’s ok to change schools — we did at a bi-mester break as the school changed it’s program mid year and our kids needs changed.  Be flexible!

Sometimes I am hard to catch.  If you try me at the following places, you will have a much better chance of finding me:

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Kristen Johnson, Realtor
435.659.8041 US & Canada cell     624 122 05 04 Mexico Cell

Golf Condominiums selling now at Quivira Golf Course Los Cabos Mexico

Golf and Ocean View Master Planned Community at Sunset Beach

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This open one bedroom two bathroom condo is the perfect getaway or investment property! Luxurious finishes as you would expect – travertine flooring, granite counters, alder millwork, sliding doors that open the space to a grand ocean & Jack Nicklaus Signature Golf Course View. Very spacious layout that provides a kitchen island with seating for four – and a dining table that hosts 6! Great for entertaining! The private master suite has dual sinks, tub, private toilet room, plus a custom closet system.

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Community amenities and services: Beach Club to included beach cabanas with flat screen TV’s and audio systems, outdoor grill pavilion for private dinner parties, beach fire pits, pool, private beach massage, kid’s club, casual dining at the Oceanside Bar & Grill, coffee bar with wi-fi, and telescopes for whale watching and star gazing. The Golf clubhouse will have a pro-shop, grill and restaurant/bar, private areas for golf members, and practice facilities including private members only areas. Copala neighborhood club house located within walking distance will have a complete gym, exercise decks for yoga & meditation, pool, steam rooms, kids play grounds, deli cafe, and bike paths. In addition, a neighborhood vehicle is provided to get you anywhere on property you want to go… or connect you to the transportation system that leaves hourly for downtown.

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Pre Construction incentives going on NOW!
Developer financing provides monthly payments from $1200 per month.

Come take a Hummer tour out to the site today! Appointments booked daily!

Sometimes I am hard to catch.  If you try me at the following places, you will have a much better chance of finding me:

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Kristen Johnson, Realtor
435.659.8041 US & Canada cell     624 122 05 04 Mexico Cell

Why buy Real Estate in Los Cabos Mexico Today?

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FACT – It’s Easy to get Here…Fly in and surf, golf, or play the same day!

FACT – Mexico is #1 Location for Living Abroad…One million Americans and 400,000 Canadians call Mexico home full or part time

FACT – Real Estate can be a Solid Investment …Although not risk free, it is closer to risk-free than the stock market today

FACT – A Preferred Vacation Home Destination…Mexico is in the top 10 international resort destinations by Americans with high purchasing power looking to acquire a vacation home in the next 2 years.

FACT – A Preferred Travel DestinationMexico remains the #2 travel destination and the #1 recreational destination for U.S. citizens

FACT – Tourism is on the Rise The new SJD airport terminal has translated into 15% higher arrivals than last year.  Lodging demand is up 9% over last year.

FACT – Los Cabos Targets the Luxury CustomerLos Cabos demands some of the highest daily rate among Mexican resorts exceeding Cancun, Rivieria Maya, Ixtapa and Puerto Vallarta.

FACT – Top-Tier Destination WorldwideAs investors remain confident and committed to new development, market analysis confirms that Los Cabos is on the brink of another resurgence

Sometimes I am hard to catch.  If you try me at the following places, you will have a much better chance of finding me:

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Kristen Johnson, Realtor
435.659.8041 US & Canada cell     624 122 05 04 Mexico Cell

Phase Two – Now Open | Copala at Quivira Los Cabos |Pueblo Bonito Full Ownership Real Estate

Welcome to a Golf and Ocean View Master Planned Community at Sunset Beach — located off the 16th fairway of the Signature Jack Nicklaus golf course.

Golf Design2
This open 3 bedroom 2.5 bathroom condo is the perfect getaway or investment property! Luxurious entry that opens with views straight to the beach! Finishes as you would expect – travertine flooring, granite counters, stainless steel appliances, alder millwork, sliding wood grain aluminum doors that open the space to a grand ocean & golf course. Very spacious layout that provides a kitchen island with seating for 4 – and a dining table that hosts 6…Great for entertaining! The private master suite has dual sinks, tub, private toilet room, plus a custom closet system. Plus two other guest suites. The terrace runs the entire length of the condo providing ocean views from the great room, the master suite and the 2nd guest suite. This floor plan provides the largest terrace in the building…lots of outdoor space to take in the beautiful views of the sunrise and enjoy the cool summer breezes!

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Community amenities and services: Beach Club to included beach cabanas with flat screen TV’s and audio systems, outdoor grill pavilion for private dinner parties, beach fire pits, pool, private beach massage, kid’s club, casual dining at the Oceanside Bar & Grill, coffee bar with wi-fi, and telescopes for whale watching and star gazing. The Golf clubhouse will have a pro-shop, grill and restaurant/bar, private areas for golf members, and practice facilities including private members only areas. Copala neighborhood club house located within walking distance will have a complete gym, exercise decks for yoga & meditation, pool, steam rooms, kids play grounds, deli cafe, and bike paths. In addition, a neighborhood vehicle is provided to get you anywhere on property you want to go… or connect you to the transportation system that leaves hourly for downtown.

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Pre Construction incentives going on NOW!
Developer financing provides monthly payments from $2000 per month.

Come take a Hummer tour out to the site today! Appointments booked daily!

Sometimes I am hard to catch.  If you try me at the following places, you will have a much better chance of finding me:

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Kristen Johnson, Realtor
435.659.8041 US & Canada cell     624 122 05 04 Mexico Cell

Quivira Golf Club on track to open Spring 2014

 

Recently, we had the privilege of sitting down with Brad Wheatley, the new Director of Golf out at Quivira Golf Club to talk about the upcoming opening of the course.  A few questions and answers from the discussion are provided:

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Upon property completion, what exactly will the Quivira Golf Club facilities include?
 
The first of two 18 hole Jack Nicklaus Signature Golf Courses is scheduled to open for play on June of 2014.
Clubhouse with full service golf and lifestyle shop, indoor and outdoor dining facilities, and a complement of full-service, resort-style concierge services.

What type of membership is offered?

Property owners at Copala will be eligible to apply for an individual annual membership or a residential annual family membership on an invitation only basis. Club Members will have full access to all of the Quivira Golf Club amenities.

What does an Annual Individual Residential Membership include?

Residential Annual Indivdual Membership at Quivira will include access to the golf course, golf carts, and use of practice facilities without additional charges for member.

In addition eligibility to participate in club tournaments, special events, and group instructional clinics.

What does an Annual Family Residential Membership include?

Residential Annual Family Membership at Quivira will include access to the golf course, golf carts, and use of practice facilities without additional charges for member, spouse of member, and all children under 25 years of age. In addition the parents of the member and spouse have the ability to enjoy the facilities when in residence without additional charge.

In addition eligibility to participate in club tournaments, special events, and group instructional clinics.

What is the initiation deposit for membership at Quivira golf Club?
There is no initiation fee for the annual membership.

What is the process to apply for membership?

The property owner must complete a membership application. Upon processing and acceptance, Quivira Golf Club will welcome the candidate as a new member. Membership photo identifications cards will be issued thru the concierge services in the clubhouse. This card will be required for all charges to the membership account at the club.

What are the annual dues for membership?

Dues for the annual membership program are $ 7,000 usd for the individual annual membership and $ 10,000 usd for the family annual membership. 16% iva tax is applicable

May I have my own private golf cart and store it at my home?

Private golf carts are allowed and encouraged at Quivira. Private carts must be leased thru the club with the lease charge being applied directly to the members account. Carts will be identical to the clubs fleet with the exception that private golf carts will include headlights and for use on the developments surface streets.

I have children/family that do not qualify under the above conditions, what would their privileges be under my membership?

Children not qualifying for membership privileges and any other “extended family” grandchildren, great grandchildren, brothers, sisters) may use the facilities for a reduced rate as established by The Club. Accompanied family and extended family may use the facilities as many times as they wish, however, The Club reserves the right to restrict family and/or extended family access if activity or other factors dictate.

How many times may a non-member utilize the facilities as a guest?

Any particular guest may only utilize the golf course facilities 6 days during any calendar year. Multi-round golf tournaments (or tournaments during which play is on more than one day) will only be considered as one guest visit.

If I am not available to play are my guests still able to play or visit unaccompanied?
Yes, on a space available limited basis. Unaccompanied golf guests are restricted to a maximum number per day.(to be determined by management from time to time) Unaccompanied guest requests to use any of the club facilities must be made thru the golf shop and are at the discretion of management. Quivira Golf Club may further restrict unaccompanied or sponsored groups as activity or other factors dictate.

If I play more than 18 holes per day with my guest(s), is the rate the same?
Guest rates are based on eighteen holes of play, not a full day’s usage. Space available additional golf will be charged at 50% of the prevailing rate.

How many golf guests may I host per day?
Currently, any member may only host 3 golf guests per day. This will allow each group to include one member and not exceed the maximum group size (foursome.) For example, Mr. and Mrs. Smith are members and they want to host 6 guests. Mr. Smith would host one group of 3, and Mrs. Smith would host the other group of 3.

If an individual member wishes to host more than 3 guests per day, the additional guests may only play in a pre-approved unaccompanied guest tee time and will be subject to the unaccompanied guest fee.

How are guest fees charged? Can my guest pay directly?

Accompanied guests and unaccompanied guests may pay for their own guest fee using a major credit card or cash.

What is the dress code – both in the Clubhouse and on the golf course?

It is expected that members and guests will dress in a fashion befitting the surroundings and atmosphere at The Club. Sleeved shirts and shoes are required at all times in the Clubhouse and dining areas. Silk screened t shirts, cut-offs, halters tops, tank tops or swimsuits are not appropriate golf attire.

If I do not plan to visit Los Cabos for an extended period of time or cannot use the facilities for some reason, does The Club offer a “leave of absence?”

The Club does not offer a “leave of absence” due to the typical use patterns of our membership.

Does The Club allow “fivesomes”?

Requests for fivesome play must be made when the tee time is made. All fivesomes are subject to golf shops discretion. Members must observe all club pace of play regulation and maintain their position on the golf course.

May I use my cellular phone at The Club?

Cellular telephone use is prohibited in the Clubhouse. Cell phone usage on the golf course will be at the discretion of the user and only with the prior approval of his/her playing partners. Cellular telephones are also prohibited in and around all golf practice areas. Telephones should be set to silent or vibrate mode while on the property.

May I pay my monthly charges by credit card?
Yes, The Club offers and encourages this option to automatically debit your credit card for the payment of your monthly statement. Statements will be available on line at the Quivira Golf Club membership website or will be sent to the appropriate billing address if requested.

Is tipping allowed at The Club?
Cash tipping is not permitted by Members of The Club, or their guests, to any Club employee. All tips/gratuities will be charge to the members account and distributed to the staff. Members may also show their gratitude for the staff each year by making a contribution to the employee holiday fund. Such contributions will be charged to the members’ account.

Are my pets allowed on the property?
With the exception of assistance animals (guide dogs), pets are prohibited on the golf course, practice areas, and clubhouse and beach club areas.

Sometimes I am hard to catch.  If you try me at the following places, you will have a much better chance of finding me:

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Kristen Johnson, Realtor
435.659.8041 US & Canada cell     624 122 05 04 Mexico Cell

Going Green – The Environmental Move in Real Estate

The Partnership for Advancing Technology in Housing (PATH) provides an annual report on the top recommendations in remodeling existing homes to make them stronger, more durable, and more resource efficient. According to PATH, some environmentally friendly remodeling projects include:

  • Wireless lighting and thermostats that allow for better user control
  •  Recycled flooring that uses salvaged boards or trees
  • Renewable flooring that uses bamboo, cork, or eucalyptus (all considered rapidly renewable resources)
  • Tubular skylights that prevent the type of energy loss typically seen with conventional skylights

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The ENERGY STAR® label is a mark of green excellence for energy-efficiency.  The label was first created in 1992 as a U.S. government program to promote energy-efficient living; but since then, numerous other nations, such as Australia, Canada, Japan, and New Zealand, also have adopted the program. The label now appears on more than 60 product categories (such as major appliances, office equipment, lighting, home electronics, and more) and on thousands of models.

The label isn’t just for products, though. New homes that meet strict guidelines for energy efficiency can also qualify for ENERGY STAR® certification. According to ENERGY STAR®, a qualified home is at least 15% more energy efficient than a standard home. These efficient homes usually include properly installed insulation, high performance windows, tight construction and ducts, energy efficient cooling and heating systems, and ENERGY STAR® appliances, lighting, and water heaters.

For more information on technology to monitor your home or real estate….

Sometimes I am hard to catch.  If you try me at the following places, you will have a much better chance of finding me:

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Kristen Johnson, Realtor
435.659.8041 US & Canada cell     624 122 05 04 Mexico Cell

 

Pueblo Bonito resorts bring home the Condé Nast Reader’s Choice Awards!

It is our pleasure to share exciting news with you from our own Pueblo Bonito Resorts & Spas. You will be delighted to know that the results from this year’s Condé Nast Reader’s Choice Awards have placed five out of the six Pueblo Bonito properties in the Top 10 Resorts in their region!

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The resorts that placed are Pueblo Bonito Sunset Beach, Pueblo Bonito Pacifica and Pueblo Bonito Rose, located in Los Cabos; and Pueblo Bonito Emerald Bay and Pueblo Bonito Mazatlan, located in Mazatlan. This year’s results are published in the November issue of Condé Nast Traveler magazine.

The annual Readers’ Choice awards are the result of an exhaustive survey reflecting the opinions of more than 70,000 Condé Nast Traveler readers, a discerning group of world travelers. This recognition, along with the recently received Travel + Leisure Awards, has thrilled our team and we are extremely proud that the readers of these prestigious publications have selected us to be among the best hotels and spas in the world. These awards motivate us to continue to provide excellence to our guests.

We hope to welcome you soon at one of our award-winning resorts so that you may experience the luxury for yourself. And for a full ownership opportunity in Cabo San Lucas at Sunset Beach, Quivira residential now offers 1,2 and 3 bedroom condominiums and 3 and 4 bedroom homes.  Special pre-construction incentives are being offered now!

Sometimes I am hard to catch.  If you try me at the following places, you will have a much better chance of finding me:

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Kristen Johnson, Realtor
435.659.8041 US & Canada cell     624 122 05 04 Mexico Cell

 

Day of the Dead ~ Dios de Muertos

Day of the Dead or in Spanish Dios de Muertos is a Mexican holiday celebrated throughout Mexico and around the world in other cultures. The holiday focuses on gatherings of family and friends to remember, honor and pray for friends and family members who have died. Traditions connected with the holiday include building private altars called ofrendas honoring the deceased using sugar skulls, marigolds, and the favorite foods and beverages of the departed and visiting graves with these as gifts. They also leave possessions of the deceased. November 1st is dedicated to deceased children and November 2nd is dedicated to deceased adults.

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Some of the elements that stand out in a traditional offering of the dead:

Lamp or Star Light – to guide the deceased

Different Colors of Cut Out Paper – Represents the union between life and death

Banquet – of the deceased favorite food and drink to celebrate

Burning Copal Incense – represents the passage from life to death and keeping the spirits away

Salt – purifies so the soul won’t be corrupted

A Cross on the Floor – represents the four cardinal points

A Path of Flowers to the Door of the Alter – guides the soul to the offerings

Toys – for the fun of the deceased children

Candles – Ascension of the spirit, the symbol of love guiding the soul to the alter

Personal Belongs of the Deceased – Photos or something the deceased used

Typical Regional Food Offerings – Rice, mole, seasonal fruits

Glass of Water – to mitigate the thirst of the soul and strengthen them for return

Pan de Muertos Bread – Represents the generosity of the host, and the gift of the earth itself

Flowers – White represents the sky, fellow the earth, purple the mourning, and marigolds guides the spirits in this world

Skulls – Made of sugar or chocolate and represents the friends and family who have died

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There are alters to visit around the Los Cabos community, at the resorts, or even down on Medano Beach.  The above alters were photographed with permission at Hacienda El Coyote Restaurant.

Sometimes I am hard to catch.  If you try me at the following places, you will have a much better chance of finding me:

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Kristen Johnson, Realtor
435.659.8041 US & Canada cell     624 122 05 04 Mexico Cell

Park City Real Estate is building momentum in 2013

Park City real estate is building momentum in 2013. To date every month of 2013 has had a higher number of closed sales than in the same month last year, according to data released by the Park City Board of REALTORS®. The number of sales for the entire Park City market area, reached 1,668 in quarter three—that is 26% over last year’s number. With a total sales dollar volume reaching $1.19 billion, the third quarter of 2013 is up 34% compared to last year as well.  Jeff Spencer, President of the Park City Board of REALTORS® said, “Our Realtors sold more in the first three quarters of 2013 than we did during all of 2012.”

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Inventory– The current number of active listings on the Park City Multiple Listing Service is 2,199, down a little over 3% from last quarter. In just the Greater Park City Area—(Park City, Snyderville Basin and Jordanelle) there are only 1,160 active listings. This is a new record low!

The absorption rate (the average time a listing remains on the market) for single family homes and condominiums remains steadily low at 5.7 months. Including lots, the number is 7.4 months—which is also an all-time low. This is a striking number compared to the average of almost 60 months in April of 2009, according to numbers compiled by Rick J. Klein, Wells Fargo Private Mortgage Banker.

Sales– The number of closed sales through Q3 2013 is 1,621: That is 26% higher than this time last year.  In fact, the third quarter shows the highest number of sales in one quarter since 2007.  Dollar volume is also substantially higher than any quarter since 2007.

Single Family Sales– The number of sales of single family homes within the City limits increased 22% over last year, and the median price of homes increased by 26% to $1,295,000. In the Snyderville Basin, the number of sales is up 17% over last year with a 12% increase in median price to $707,750. Jordanelle Area is up 6% in number of sales but it is down 17% in median price to $643,500. Comparatively, the Heber Valley has climbed 19% in the number of sales and produced a 35% increase in median price!

For quarter three, Old Town stands out with a 51% increase over last year in the number of sales, with a median price increase to $912,500 which is up 14%. The number of sales also picked up in Lower Deer Valley with a 73% increase over 2012, but that may be a result of the median sales price dropping 24% to $1,500,000. In Park Meadows, the number of sales climbed 23% and the median sales price increased 43% to $1,470,000. The Silver Springs area jumped 109% in the number of sales, though the median price only increased 10% to $689,025. Another neighborhood which gained significantly in sales is the Trailside Park Area with a 59% increase over last year and a moderate median price increase of 11% to reach $510,000.

Condominium Sales– The number of condominium sales to date is up 20% with a median sales price increase of 12% to $373,300. The Jordanelle area saw the highest jump in year-to-date sales with a 74% increase and median price increase of 11% to $349,000. Within the Park City Limits, condo sales jumped 20% over last year; however, median sales price only increased 1%. In the Snyderville Basin, the number of sales only increased by 3% but the median sales price went up 13% to $321,497.

By area, Old Town had the highest increase in the quantity of sold units jumping 57% over last year—with an 18% price increase as well. Park Meadows saw a 38% increase in number of sold units, but dipped in price by 1%. In the Snyderville Basin area, Silver Springs increased over last year in both number of units sold by 75% and median price by 26% reaching $356,700. Pinebrook jumped 25% in the number of sales and the median price rose 14% to $315,000.

Vacant Land Sales– Vacant land saw the biggest increases in number of sales over last year with a 56% hike, though the median price fell 3% overall. Vacant land in the Park City Limits had the highest median price increase of 33% reaching $625,000. Jordanelle area saw a whopping 116% increase in the number of sales over last year’s number.  The Snyderville Basin saw a 41% increase in sales, though the median price is flat compared to last year remaining at $300,000. Highlights by area include Lower Deer Valley, Deer Crest, Pinebrook and Jeremy Ranch which all saw a significant increase in the number sales.

Distressed Sales– Short sales and bank owned properties continue to decline, so that they are far less of a factor in our market than in previous quarters. As reported by Rick J. Klein, Wells Fargo Private Mortgage Banker, only 1.17% of active listings are either short sales or bank owned. Distressed properties account for only 5.41% of all closed sales in quarter three. Jeff Spencer quips, “What shadow inventory?”

Looking Ahead– With the increase in the number of sales, median prices slowly on the rise, active listings at a record low, and an absorption rate of only 5.7 months (for homes and condos), our market appears strong and stable. “Already this year, there has been over $1.1 billion in closed sales, a number that was difficult to reach by year’s end only a short couple of years ago,” says Mark Seltenrich, Statistician for the Park City Board of REALTORS®.

Still individual neighborhoods in our market vary drastically, so it is vital for both home buyers and sellers to consult a local Park City REALTOR® for the most current and accurate information.

Sometimes I am hard to catch.  If you try me at the following places, you will have a much better chance of finding me:

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Kristen Johnson, Realtor
435.659.8041 US & Canada cell     624 122 05 04 Mexico Cell

Capital Gains Tax in Mexico

Understanding Mexican tax law is an integral part of the real estate purchasing process. What you do today dictates your tax liabilities tomorrow.

The following is an overview of the capital gains tax regulations currently in place for individuals. Note that the information is intended for individuals, not corporations. Over time these regulations may change, therefore it is important to make sure that the process outlined here is still in effect by contacting a Mexican Certified Accountant or Mexican Notario.

CAPITAL GAINS TAX

Capital gains tax law in Mexico states that tax is owed on the profit you receive when you sell your home or property. By law, you have two options when it comes to capital gains and you can use whichever is the better of the two options for you:
1. You pay 28 percent* of the net profit. (There are a variety of deductions included in this option.)
2. You pay 25 percent* of the gross sales amount with no deductions.
Although a 28 percent capital gains tax may seem high, Mexico does have several laws and procedures that will assist you in maximizing your cost basis, thereby reducing your net profit and lowering your capital gains. The key is understanding these laws before you buy, not when you decide to sell.
*Percentages reflect the 2007 Tax Code.

WHY SHOULD YOU TAKE ON THE SELLER’S
CAPITAL GAINS LIABILITY?

The first step in calculating your capital gains is to subtract the value you have recorded in your trust, or Fideicomiso (fee-day-coe-me-so), from the sale price of your property. In the past, some real estate companies have recorded values lower than the actual purchase price in an effort to “save” taxes for their client; they thought they could save money on the two percent acquisition tax. This is a major error. Never record a lower value than what you actually paid for the property. Doing so simply establishes a lower cost basis for the property, which increases your capital gains tax liability.

An oversimplified example is: You wisely purchase a home site (lot) for $1 million, but unwisely record a value of $500,000. In the eyes of Mexican tax law, your cost basis is now $500,000. If you sell the lot for $1.2 million, you see a profit of $200,000. However, according to your recorded cost basis, Mexico sees a profit of $700,000 and your capital gains tax for Mexico will be 28 percent of $700,000 ($196,000) — a difference of $140,000 in profit. Snell Real Estate’s approach to ownership in Mexico, specifically the trust process, has been established to protect you and provide you with the legal means to safeguard your investment. Recording your authentic purchase price with proper documentation is the only way to maximize your potential profits. The bottom line is to always secure your property trust for the true value of your purchase as quickly as possible.

Never allow anyone to convince you to record a lower value than what you have actually paid for your property, or you will assume the Seller’s capital gains tax liability. Recording a lower value today can cost you, should you decide to sell in the coming years. If a Seller can convince a Purchaser to record a lower value, the tax liability is simply passed along, and eventually someone will have to pay. Don’t let anyone tell you, “That’s how we do it here.” Mexico is like everywhere else — the capital gains tax is the responsibility of the Seller.

Simply, a property is not yours until you have the title in your name. Also, if you don’t record the accurate value of your purchase, you’re most likely taking on someone else’s capital gains liability.

Fact: Recording a property’s true value benefits you and establishes your cost basis in the eyes of Mexico.
Fact: The amount you pay for a property has no impact on your yearly property taxes.
Fact: Capital gains taxes you pay in Mexico can be applied to your U.S. taxes.

HOW DO I KNOW IF MY VALUE IS RECORDED CORRECTLY?

A closing officer oversees the creation and completion of your trust. We review the documents with you to make certain everything is in order, and we are present when you sign your trust. You can verify the value yourself by examining your trust and noting the amount written in text, which is indicated in U.S. dollars or Mexican pesos and includes the exchange rate of that day. Simply divide the current exchange rate into the peso amount and make sure the result reflects the actual dollar amount you have paid. If you would like to review an old trust, simply determine the peso rate for the day and year the trust was executed.

Sometimes I am hard to catch.  If you try me at the following places, you will have a much better chance of finding me:

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Kristen Johnson, Realtor
435.659.8041 US & Canada cell     624 122 05 04 Mexico Cell