To avoid real estate fraud, he said, it is advisable to look for advisers who are part of an association or franchise, as this will guarantee that you will have the help of a professional. When you sell your Mexican residential property, there are some selling costs, and taxes and tax allowances you need to account for as part of the transaction. There are two types of Mexican properties. It can be through a real estate agent, real estate . In 1973, a new constitution allowed Canadians to own property only in the non-restricted zone in Mexico. Non-residents are obligated to pay Mexican taxes on property located in Mexico. From making the deal to taking possession of the property will be approximately 40 to 45 days. The IRS allows the value of a deceased person's property to be stepped up to its fair market value on the day they die, rather than whatever it was when the property was acquired. . Working with a bilingual attorney or agent can help to ensure that you are fully informed and that all necessary documentation is in order. You don't include the value of your own labor, and you don't consider how the market value may have increased due to the improvement. I also have no income. Since you inherited it, your cost basis is the FMV of the property on the date the deceased passed away (not the date you inherited it). What are Mexicos UDIs, and what are they used for? In Mexico, the role of the Notary Public is paramount in property transactions. The second is Mexican Property inside the restricted zones. I think I have all the info I need, just gotta see how I come up with all those receipts from over the years. However, if you have inherited the foreign property from a deceased foreign relatives foreign estate, you need to complete and submit Form T1142. The only 2 ways you can pass your Mexican property on to your chosen heirs when you die are 1) Mexican Will and 2) Designation of Substitute Beneficiary. If you inherit property in Mexico, you will be subject to the same tax laws as if you had purchased the property yourself. Selling Inherited Property in Mexico. For the majority of foreigners who buy land or property in Mexico, full legal title will be readily available to them. In such cases, selling a house with multiple inheritors can become difficult. A good realty agent will be open and transparent about the propertys legal status; however the ultimate responsibility lays with the buyer. As long as it is located outside of the so-called Restricted Zones. This technically constitutes a second Probation of the Will were a judge acknowledges the testators directions and, in some cases, will require the presence of the heirs or representatives in Mexico during the reading of the Will. Real Estate Transactions in Mexico in a Nutshell - HG.org An MLS listing via Houzeo will give your house maximum exposure, and you may even attract cash offers. Canadians have to pay income tax on the sale and rental of foreign real estate, For further details, see our TurboTax Tips on Declaring Inherited Overseas Property. So, if you are ready to sell your inherited house in New Mexico, start now! Simple Guide to Mexico Real Estate Law (for Americans & Foreigners) Selling inherited property in Mexico Yes, property owned by a foreigner can be transferred to his or her beneficiaries after death. MX: +52.322.223.5300. What tax forms do I need to fill out? By clicking "Continue", you will leave the Community and be taken to that site instead. They must file the partition action in the local court instead of the probate court.