There are plenty of real estate opportunities available for prime locations in Mexico that include Los Cabos, Puerto Vallarta, and Cancun in case you think that you have missed out on an amazing real estate opportunity. For foreigners it is easy to invest in real estate for vacation rentals in Mexico, especially now that there are websites, which include Craigslist and Airbnb where vacation rental properties are advertised.
Real Estate for Vacation Rentals in Mexico Investing
Today, foreigners can easily purchase real estate throughout Mexico even though there may be different regulations on buying property that is located in the restricted zones (50km from the coast and 100km from the border). After you have bought Mexican real estate you can start the task of letting the real estate work for you by renting it out short term or long term. Investing in vacation rentals are very popular for vacationers in Mexico and the demand is only increasing yearly. Last year there was an increase of 9% in the real estate industry for the best destinations in Mexico, and the occupancy rates are only increasing in these areas as well.
Vacation Rental Income in Mexico
Why purchase Mexican real estate for vacation rentals? One of the main reasons is the great income that you will receive. Once you have purchased Mexican real estate for vacation rentals you can advertise the rentals in Mexico at US rates, which means you will receive a stable income at a premium price, especially if you plan on renting your vacation rentals during the peak season, which in Mexico is during the winter months. You will be charging the rental in US dollars, but your maintenance, expenses, and all running costs can be paid in Mexican pesos, which means you will make a great return, even if the property appreciation is considered throughout the years.
Paying Income Tax on your Vacation Rentals in Mexico
During the past few years, any income from vacation rentals in Mexico often went unnoticed, but the new tax laws state that all property owners and investors must pay taxes on any income received from vacation rentals. You should always consult with a tax attorney in Mexico, so that you don’t get in any trouble with the law for not paying tax on vacation rentals in Mexico.
Real Estate Property that You Can Use
The real estate property that you purchase is an investment, but it is also a vacation property that you can use too. You will have an amazing vacation property in Mexico available for you that is your very own. One good thing about purchasing real estate property in Mexico is you can rent it out and get the extra income along with having a great vacation property that you can use too. Real estate for vacation rentals in Mexico is a great investment for foreigners.