How We Almost Lost Our Capital Gains Exemption in Mexico
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- čas přidán 11. 07. 2024
- Ready to Move to Mexico? Check out the COMPLETE Mexico Relocation Guide
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- Contents of Video ---------------------------
0:00 Introduction
0:24 Requirements for a tax exemption
3:14 Different interpretations am0ng notaries
6:06 How we sold our condo
8:49 Things start to get complicated
10:41 A look at the law
12:15 How we got it resolved
DISCLAIMER: I am not a lawyer, real estate professional, immigration specialist, import broker, financial advisor, major league umpire or astronaut. The information provided in my videos is based on my own experiences and/or research and is not intended to serve as professional advice. I make no representation or warranty of any kind, express or implied, regarding the accuracy or completeness of said information. In other words, take some responsibility for your own life choices and conduct your own research before making important decisions.
Ready to Move to Mexico? Check out the COMPLETE Mexico Relocation Guide bit.ly/3SICdD0
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Contact me if you wanna hear the 6th month-long sale process I went through when selling my condo Mazatlan Mexico and Yes it is a Nightmare from hell.
For me it cost 30% of the sale value so consider that and listen to this blog so that you Don't make any mistakes from The Moment you buy to The Moment you sell because it's all about the notary and the laws CHANGE constantly and you will be ripped off as much as possible just Know that
this is EXACTLY why this channel is at the top of my "to watch" list on YT. Paul, you are an absolute gem for potential expats. Your videos are worth their weight in gold.
Thanks, Chris.
Totally agree ! Another great vlog ! Thank you
Your videos are worth every single minute spent watching them. The information you provide shows just how much time you put in throughly investigating the subject matter and breaking it down it down for us. Thank you!
Thank you so much for that super positive feedback! You made my day.
Now i f only we could learn Spanish so quickly ;-)
We put our house up for sale in May and had a real estate agent tell us that we would both need an RFC on our CFE bills to be able to claim the capital gains exemption. Thankfully we did it immediately as the house just sold. Your videos are an excellent source of information. Keep up the good work and best of luck with the next chapter in your life.
i really like this guy, he probably has a little OCD but that is what makes him so good
I recognize it. I think you might be right. Paul pays extreme attention to detail. It's what made me a good investigator. Paul was that same kind of deputy sheriff, a great bloodhound.
I just looked, and my CFE bill has the generic RFC as well. Thankfully my CFE offices are a block away, so I'll pop over and have my account updated. Thanks for the heads-up Paul!
Happy to help, Brett.
Brett, do you understand the difference between a generic and a tax RFC. My RFC has 4 letter, my DOB (Y/M/D), 6 letters and 2 numbers and I received it from the SAT office. Thank you
@@tuckerandtom43 Yes, I am aware of the differences - I'm wondering why you would ask?
@@bjones9942 because i donot know and am seeking to learn the difference
@@tuckerandtom43 We are trying to obtain a tax RFC, and it seems to be very difficult. We live in Bucerias. Do you have information on how to get the number easily? Can it be done online? Any info will help
Having lived in Mexico for over 35 years and naturalized for over 15 maybe because I’m “ mal pensado” I’m thinking el notario might have been looking for a kickback to be a little more lenient in his interruption
Good stuff, as usual! Thanks for helping people move to Mexico, with a little less stress.
❤️
Our pleasure!
The best Mexican channel on CZcams. Thanks, Paul
Thank you!
Wow! Thanks as always for these extremely informative videos! I plan to purchase rental income property at some point, so all of these tips come in super handy! Enjoy your travels!
great content thank you!
Good to know all the complete facts. Thanks!
Awesome information
Thanks for the excellent information!!! I am glad that you were able to resolve this issue.👍
Thanks once again for great information.
Another reason to rent and not to buy. Too many complications can arise. Thanks for the info Paul.
As an owner for 15 years of a condo in Mazda flon Mexico I highly agree that you should only rent as long as you want to stay there because there will come and end to your Twitter patient over Mexico at some point and you will be stuck paying 30% of whatever little money you can get for the very expensive property you bought and all the money you put into it plus all the things that you're leaving that you bought that match the theme. Just planned to lose your a** because they'll take every time they can get at least 30% of your closing
Thank you, Paul....very informative and useful story (as usual).
Wow thanks so much for your video!
Invaluable information. Thank you thank you.
Great explanation of the issue. Thanks for the heads up.
Wow, que suerte ! Great info, Paul. Glad it worked out good. Thanks.
Valuable info.👍👍Thanks !!
Glad it was helpful!
Priceless information! Another great video with value at another level. Thank you!!
Glad you enjoyed it! Thanks for watching, Kim.
Awesome video and very useful information Paul. Congratulations on the successful sale of your property as well and with glitches finally worked out.
As always your information is invaluable Paul.
Thanks for watching the video. It was a stressful process, but I thought telling our story would help others avoid similar issues.
Wow....Thanks for the heads up, Paul!
Thank you for all the very important details. Good luck with your plans 😍😘
Man... you are a good man, thanks for these super freaking helpful videos!
Great Advice. Thank you so much!
wow thanks so much for your experiences and then sharing them, you have help me along my journey to mexico and i come back to view your videos because of your honesty, & true facts you give with never sugar coating your journeys and experiences.
Excellent information! Thank you!
Our pleasure!
Hey Paul, Thanks again for the great video. I learned a lot!
Glad it was helpful!
What a great "EYE OPENER" - Thank you for sharing! I'm going to check all of those "RFC #'S on my CFE BILL!!!!
This is super helpful.
Thanks for all information 😀😀
Very valuable video Paul. Thanks 🙏
Very good video, thanks boss
Thank you, Paul for sharing and teaching us about all your Mexican experiences! I also would like to learn about Mexican income tax for expats living in Mexico full time, as tax residents, especially about Mexican taxes on incomes outside of Mexico. Hope you can shed some light on it.
Than you so much for your advice
Great video and so informative. I had no idea of that RFC requirement, so will get on the this detail.
Glad it was helpful!
Great explanation of this key topic Paul. You were buillt to do this your talents and precision are valued here
Awesome content you will ONLY see here - just adding this to my list of things to for my retirement in Mexico!
wow what a experience , thanks for sharing !!! 🙌
Wow! Thanks for sharing. Really crucial info. 😊👍🙏
Glad it was helpful!
This is GOLD, thank you so much! I'm going to get our RFCs and get mine added to the CFE bill and both of ours at the bank - Anne
Any chance you could add a link to the site we need to go to to apply for our RFCs?
Paul you just opened my eyes and I will check my electric bills to make sure I have the right information on them. Thanks you so much and I'm glad you were able to resolve this issue. Best video of the year !!!!
Thanks, LG!
Thank you for posting this. My wife and I are in the process of determining a listing price for our condo in Centro Playa now. We’ll definitely consult an attorney and Notario before moving forward with any listing agreement.
I agree 100% with Chris, Paul your are an amazing educator. Thank you so much.
Thank you so much, Andres. :)
You are the man Paul! Thank you so much!
Happy to help!
WOW that’s a really important advice especially for newbies to get „things in order“ right from the start! Love your channel ❣️
Thanks so much!!
Excellent move on selling the property. It's nice to see someone making out well when being abroad and avoiding the big potholes.
Glad all turned out okay for you, It’s scary hearing that a pro ( you ) that has tons of years of Mexican living experience has had this happen, well, nearly happen.
I absolutely love your videos. Facts, not guess work. That is incredibly important.
The one thing that is consistent about Mexico is that it is inconsistent...lol. Thanks for watching the videos. Have a great day. :)
this is so interesting! I love your straightforward approach... MUCHAS GRACIAS!
Glad you enjoyed it!
Glad it worked out in your favor
Good to know this sample things end you help people, muy bien 👏👏🤝🤝
wonderful vid!! TY. This is the single most informative and useful Mexico video I've ever seen. Since living in Mexico for the past 19 years, I've seen a few!! haha. I'm thinking about selling my home next year, so very timely advise!! Thanks again!! Best wishes
You made my day. I’m going to get my (non generic) RFC number on all my utility bills starting now, even though I’m not thinking of selling. I’ve owned my condo since 2013 without being fully informed of these details although I knew of the capital gains tax. I’m just now getting my Permanente and will get RFC and CURP with the help of my consultant. Thanks, and I find all your videos informative.
Paul...you are awsome...I learn...a lot form your clips....THANKS ❤
This is mind boggling information. I am just in the exploring-Mexico-with-a-vague-notion-of-maybe-relocating-some-time-in-the-future phase. But this raises the stakes considerably. If you are involved in this type of transaction and your Spanish isn't fluent enough to grasp everything on the ground, you'll have a few nasty surprises. Wow. Speechless. Thanks Paul, you are providing an invaluable resource.
Wow that was a close shave, no pun intended lol
Top notch intel as usual bro.
🤣🤣
Your Capital Gains video was great. We bought a place in June and have just received our escritura. You KNOW I am all over registering our RFC with our bank (done), our CFE (done) and water (tomorrow). Thanks!
Thank you again for great information. I'm heading to CFE and the bank this week to provide my recently-received RFC
I am a ral estate agent in PV but just moved to Los Cabos area. Since the minute 1 I realized immediately about the issue you talked. I had that issue from the gents of the selling side and amazingly this is something so basic in the career of a Realtor but still keep seeing this HUGE MISTAKE. We as a realtor is a must to see check all paperwork and advise either side about any eventual issue. I see this and several other problems a lot with the foreign realtors all the time, since they just learn from a book, but reality is so different, and than we must stop and changing closing times. Great explanation again Paul. I love and appreciate your videos, in fact I just sold a house in Vallarta to a couple from Melbourne Australia and had explained about this process and to do it ASAP to be ready in case they want to sell. I just send them this video as a reminder. Thank you again for this great material
La Mera Neta Camarada!! Eres lo maximo!!! Muy buenisima informacion soy mexicano pero tengo 48 years in southern California and I wanna go back to mi Mexico lindo y querido! And I'm gonna need a lot of information from you amigo! Dios los bendiga y mucha suerte
Good stuff! Paul, follow your own advice :)! Happy to know that you got those 30K!
Great video. I think I may rent for a while:)Thanks much.
Men,you are incredible with all this information and tips , thank you so much,I will like to have all your videos in a order so I can looks for what’s I need to know in the right time,thank you and Linda for all this,Luis Bares from Las Vegas,now in the process buying a house in Progreso,thank you very much
We are just down the road from you in Komchen.
This will be an issue for my husband and I some day. Although we don't anticipate selling our property in Mexico for many years or maybe ever, never say never. This small detail could easily be overlooked-thanks for the heads up!
You're welcome. We did not anticipate selling this year either but when opportunity knocks... :)
Thank you for this video. I just sold my personal residence and I have my RFC but not on by bank or CFE. Luckily I have time to update.
Very informative . It's shocking how much latitude notaries have in Mexico. That flexibility is frightening . It certainly leads to shopping for the right notary or rather the notary who gives you the "right" interpretation of the law . Crazy .
Brilliant, thank you! Off to CFE in the week. Saludos desde Puerto Vallarta.
Thatnks for watching. Saludos. :)
HI Paul, I'm a tax accounting over here, and while I don't have clients in Mexico (yet), I listen to all the issues that could/can come up to keep in the back of my mind, or for when we decide to move to Mexico (which is a for sure plan) in the future. As always, appreciate your videos on things that could impact your living in Mexico!
Hi Mario. Thanks for watching and the positive feedback. I'm sure you won't have any trouble finding expat tax clients once you move down. :)
Repeating a comment by Lee West below, just to bring this to your attention again: We found our CORRECT RFC on the back of the CFE bill, under Datos Fiscales del Receptor, near the QR code. What is printed above the barcode on our bills has varied over the years (but was never the generic) and I remember going to CFE to have the correct RFC attached to our account. Maybe all it would take is to check your datos fiscales as recorded on the back. But thanks for this video, Paul, great info all around!
Thanks for sharing that info.
Man, I just bought a property and thank God i watched you video. Very useful. Now i have to figure out how to the get that RFC me been in Canada.
Very informative. My lawyer-not my notario - told me I could sell my house with a generic RFC and incur no capital gains because it’s my sole residence and I’ve been here 6 years. She said the notario would give me another generic RFC at the time of sale and all would be good.
Yikes, I like to learn from others’ mistakes as I’m sure you do too. Thanks again Paul.
like the black background, able to focus on the great info.
Good video.
Exhibit A for "everyone in authority interprets rules their own way" in MX.
A fascinating and informative video, thank you. I wonder if you need to jump through the same hoops of you are reselling a piece of undeveloped land that was bought but not built on?
Thank you! I would not have thought to go back and add it to my CFE account. Sorry to learn from your lesson but thanks!
Glad it helped! I had never heard of it before. Take care. :)
Do a follow up. This is super helpful. We will want to know how it all worked out… best wishes
Everything worked out. I waited until the everything was done, the money was transferred and the dust settled before making this video. I didn't want to jinx it right at the end...lol.
Thank you for your informative video. I want to retire in Mexico. These videos are helpful.
Thanks for watching, Martha.
Thanks for the information, Paul! Personally, I like to have All our facturas of our car, motorcycle and utilities under my personal RFC. In a few weeks, my husband will be getting his, so he can open a bank account for his SS pension and if he decides to trade his bike for another one.
Thanks again, details, details, details...😵
12:00 "i reached out to other RE lawyers n they said that it was not necessary". Well, I know my people, these lawyers did not give you this advice in writing with an ironclad contract notarized to back up their " lawyering, cantinfleo, words". SAT, tax authoriy, can go after a contributor for 5 years; at the end, u need to add to the 30k, +interest, +penalties up to 75% and +actualizations related to the time value of money t=0, all these will translate to 5 times the original amount owed to our partner SAT even after death. Good thing u caught it from the beginning.
Dear God, if someone as precise and detail-oriented as you nearly messed up, what hope do we mere mortals have!
In ex-pat communities there are professional Gringo aids to help you. But they won’t advertise themselves as Gringo aids. In our area they are called “property managers” and they know the kinds of crazy questions we who didn’t grow up here have and can help with all kinds of things and when they can’t - like, our property manager isn’t going to give us tax advice - the lawyers in expat communities are also very used to dealing with us non-citizens and our lack of background knowledge.
Your contents are so great and informative that I decided to try Mexico with the possibility of eventually moving there. I wish I could communicate with you to get some initial hints on how to do the process. My idea is living in different places and then deciding for a permanent place. Any hints would be appreciated. Thank you.
do you have an idea where you want to live? I am in Tulum and I think it’s great to visit but sucks to live here. I regret my property investment
@@gladlock Thanks for your reply. Can you please share why you feel that way? I have been thinking about Tulum, but have no idea about the pros and cons. Another place that I like is Queretaro, but again, have no idea about living there. Appreciate if you can share your experiences. Thankyou.
@Evolve Would like to hear your experiences as well
Always great info Paul! So…. Where or how do we apply for the RFC number?
You can apply in person at an SAT office or online via the following portal, if you have your CURP handy: www.sat.gob.mx/tramites/28753/obten-tu-rfc-con-la-clave-unica-de-registro-de-poblacion-curp
The problem for most folks is that the site is only in Spanish and is not the easiest to navigate. I plan on helping a friend get her RFC and then I will record the process to make a future video. So many videos, so little time...lol.
@@qroo Hi Paul, this site does not seem to allow you to apply online? Are they in the process of changing things? We have TR and our CURP
Great video! May you share your list of favorite notaria’s in the playa del Carmen and Tulum area.
If you’re selling a primary place of residence in other words, your own Mexican home that you lived in for the past 1, 2 or years then you pay a big zero in capital gains tax to Mexican cartels I mean, government. Just make sure you have a temporary or permanent residency card.
We had a similar issue. I had a feeling this video was going to be about the RFC number. We sold our home that we built last year and we were told at closing that I wouldn’t be able
to get the exemption because I didn’t have N RFC. My husband had one because he is a Mexican citizen. Luckily for us, my real estate agent whom we had known for many year knew the builder of our home and told us that they would have had us both create the RFC when we built the property because they were excellent and through. The builder was Cuban american and had built many homes in our community. So we had to delay our closing by 1 day and I had to go to the SAT office first thing in the morning and it took all of 5
minutes to get my RFC number and voila I get to claim my part of the exemption. Selling property in Mexico is not for the weak or impatient.
This is why everyone should use a high level legal agency / lawyer. The correct lawyer will watch over the notary and get the best deal for the customer.
THIS IS COOL SHIT ....THANKS BRO
Definitely missed a bullet! Wow! Glad to hear all is well though 😊😊. Side tracking a bit, does Mexico require you to pay taxes on your SS money or any income from the USA? if so, do you have link to show how much you have to pay? Thank you for all the info and videos 😃😃
I got the blog email and came straight here to watch. I can only imagine the shock and ensuing sick feeling when you thought you might have to pay $30,000. If it weren't for the fact you and Linda are sharp cookies, they would have held you to it, and then skimmed those $30,000 off the top and make it disappear out of the system. This is Mexico.
It was stressful for a few months but thankfully it worked out in the end. I have slept much better since then...lol.
Hey, another great video, What’s the best thing to do just get a legal pad and start rating down all the crazy stuff you have to do in the hoops you have to jump through and try to put them in order
I mean all these rules and tax things is all kind of a deterrent to me. As of now I thought it was going to be easier than this or am I overthinking it?
I’m terrible at keeping records and I’m single, so it makes me nervous not to have someone else reminding me of things to do is there a service?
Paul, I watch your videos all the time and you're always spot on. I think you used to be a Mexican "gestor" in your previous life"😂😂.
Hahaha, maybe!
Don't plan on buying any properties or homes
But great information as always
Thanks Paul
Take care
PS: Oh so when do we start seeing traveling videos ha
Cheers J&D
Thanks for watching the video. We plan on starting the travel vids in a couple of weeks. Probably the last week of October.
@@qroo awesome 👌 👏 👍 😍 💖 😎
Great info! Regarding the size of the construction vs. the land size to get exemption.... Is the 3x rule applicable to patio, pool and decking sq footage that is considered construction? It seems customary in Mexico to count any sq footage that has a ground covering ( concrete or stone without a roof covering) as construction even if it is not considered "living" sq footage in the US.
Hello Paul, thank you so much for this video. I am planning to buy property in Mexico and I have been worried about the capital gains rules. I have a friend who's mother sold her condo and did not receive her capital gains exemption. My friend now only talks about how corrupt Mexico is. I would love for you to please make a video or better yet write a booklet on how to buy and sell property properly in Mexico.
I plan on making more videos related to real estate. :)
Thank you we’re in the process for the last 8 months of trying to close and like you say this notary is absolutely useless,first lost the owners birth certificate but never said anything until we went in asking what the problem (they never return calls) our intercam agent was having many issues trying to get the information needed for our trust. We traveled back to Canada to finish up my MIL ESTATE,thinking everything was going forward wrong, the closing date came and expired, again it was our trust who found out and like you resigning and extra running around for the owner. My question we had to apply for a rfc for our trust, do we give this number for all our utilities,bank accounts.
When the rfc came up at the beginning many said the notary would apply we by this time knew not to trust them and applied ourselves thank goodness. Hopefully this week we will have a closing date fingers crossed 🤞. It’s been absolutely insane experience, the Mexican owner and my realtor have been extremely helpful but like us are absolutely frustrated with the notary and they are going after them for them to do thier job.🧐🧐🧐
Hey Brother Paul. We are living with her parents right now who are sick. When they go we get a small portion of the lot. When we get this small portion do we need to RSC and what paperwork do we need to get. This is a serious problem because I don't want to go into it blindfolded. Trusting man this RFC thing has really shined the light on the whole situation. When we start portioning the land I'm going to want to get everything in my name and make sure the RFC number is legit with everything. Could you maybe write me back or maybe do a show about people who are inheriting land thanks Paul God bless you man Jesus loves you
I’m in the same situation. My dad passed and my siblings and inherited his home. I am the only one with dual citizenship. Do my siblings have to become citizens of Mexico in order to sell the house?