You could be forgiven for thinking that, when it comes to cashing in on Mexican real estate in prime locations like Puerto Vallarta, Cancun, and Los Cabos, you have missed the boat. There are, however, still plenty of opportunities in Mexico, and it is easier today to invest in Mexican real estate than it has ever been before. Read on to find out more about Mexican real estate for vacation rentals.
Investing in Mexican Real Estate for Vacation Rentals
Foreigners can buy real estate almost anywhere in Mexico, but there are different regulations when you try to buy property within the “restricted zones ” (these are the zones around 62 miles from the coasts and borders of Mexico). Once you have dealt with all this, and bought the property, however, you can get to work making your investment work for you through vacation rental income. This is a rapidly growing option; last year saw a 9% growth in this industry. Occupancy rates are also rising for the top destinations in Mexico, such as Puerto Vallarta.
Income from Vacation Rentals
One of the really big attractions for people buying Mexican real estate for vacation rentals is the potential income you can pull in (especially during the high season). You can also advertise your vacation rentals in Mexico in US dollars which means you get premium rates and a fairly stable extra income. This is a good idea because while you get your income in USD dollars your maintenance, expenses, and running costs are usually in pesos; so you can expect to make a good return!
Paying tax on income from vacation rentals
It used to be the case that revenue from Mexican vacation rentals went a little under the radar, but new tax laws for owners and investors have made paying taxes on any vacation rental income enforceable. Be certain to consult a tax attorney in order to sidestep any issues or pitfalls. Paying taxes in Mexico is easy with an accountant to help you, which is generally much less expensive than back home.
Real estate that is yours to use
Better yet, when you own a Mexican property you don’t have to use it purely for vacation rentals; you will be able to use it for your own vacations! This is an investment not only in your future financial stability, but in your future vacations.
For more information about Mexican real estate for vacation rentals, contact us today at Garza Blanca real estate: 1 844 598 3564