Chapala
living

Cost of living in Mexico

Living In Chapala and Ajijic is wonderful because of its excellent weather, beautiful places, and an affordable cost of life to live in a simple way or to live with all the luxuries and comforts; many foreigners live here with their pension and many others decide to invest and make their money and life style profitable. In here, it is simpler to live and find products and services at an affordable price, for example, the cost of the bus is about $0.64 USD, high speed internet for $32 USD, domestic service for $3 USD per hour, a good steak of 27 oz in one of the best restaurants is around $13 USD, which makes going out to eat really cheap.

Being owner of a property, the cost of life (depending on the situation and the life style of each person) is around $1,000 to $3,000 USD per month; renting a property you would have to add that cost to the average. Undoubtedly one of the best options is to invest in a property since the added value en Chapala – Ajijic is higher, and surely more profitable.

TAXES

One of the best incentives of investing in Mexico and especially in Chapala – Ajijic is thar the FOREIGN RESIDENTS DO NOT PAY TAXES OF THE MONEY BROUGHT TO MEXICO! They will only have to pay an income tax that is between $50 USD and $200 USD a year, a really low cost.
To know more about the type of properties that you can invest in, click here.

When you make business or work in Mexico take into account the next information:

THE FINANCIAL SYSTEM IN MEXICO

To make business or work in Mexico you will have to pay income tax or value-added tax (VAT).
The taxes that you will have to take into consideration in Mexico are:

• -The already mention, income tax and VAT
• -Taxes over real estate
• -Taxes over real estate, selling of buying.
• -Taxation on the increased value
• -Tax over the rental.

If you are Canadian, there are agreements of financial direction for residents. To know more about these agreements contact us clicking here, and we will send you the information you need.

It is important to know that besides the tributary rules in Mexico, you should know about the practice of them, which sometimes is very different.

HANDLING MORTGAGE

Now in Mexico, it is already possible to get a mortgage with a reasonable financing cost, giving the same property as guarantee. These mortgage financings are carried out in Mexico as well as in the USA, through authorized institutions such as BBVA Bancomer/Compass Bank, Scotiabank, GE finances, among many others. The loans can be in USD or in Mexican pesos in other situations. They can be from $80,000 to $400,000 USD approximately, depending on the type of loan it can vary, and as a loan of %70 of the total value of the property with a time of amortization between 15 and 30 years, you have to count with a minimal punctuation of 680 or equivalent.

The mortgage credits have to be registered through a trusteeship with the Trust Bank that has an approximate cost for the rate and commission of $500 USD per year, besides other opening fees, insurance, estimation, etc, that are between 2.5% to 3.5% of the total amount of the loan. If you are interested in getting a residence and would like to know more about it, click here and contact us, we will assist you with pleasure.
The applications and their process require of all the documents necessary to prove the incomes and other grading requirements that are very similar in every case.