Introduction
When you buy a property in Mazatlán, one of the most important steps is deciding who will be in the title deed . An individual? A legal entity? A trust? The answer depends on your profile as a buyer, your intended use of the property, and your nationality. In this article, we explain the differences between these three options in simple terms, their tax implications, and which option is best for you.
1. Write as a natural person
What does it mean?
The deed will be in your name as an individual. This is the most common way for Mexicans to buy their first or second property as an investment or home.
Example:
Juan Pérez, a Mexican citizen, buys an apartment in Mazatlán to vacation in and eventually rent out through Airbnb. He registers it in his name.
Advantages:
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Simple and straightforward procedure.
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Lower notary costs compared to a trust or company.
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Access to benefits such as exemption from ISR on the sale (if it is a residential home).
Disadvantages:
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If you want to sell, taxes may be higher if you cannot prove residency.
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Less flexibility for tax deductions if you plan to rent professionally.
Tax implications:
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You declare income from rent as a self-employed individual or through technological platforms.
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In case of sale, you can apply for an exemption if it is your main residence (SAT requirements).
2. Write as a legal entity (company)
What does it mean?
The deed will be in the name of a legally constituted company (SA de CV, S. de RL, etc.), whether existing or created specifically to operate real estate.
Example:
"Mar de Inversiones SA de CV" purchases three apartments in Mazatlán to rent them out year-round on Booking and Airbnb. Deed in the company's name.
Advantages:
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Better tax tools for deducting expenses (maintenance, salaries, services).
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Professionalization of the operation if you have several properties.
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Possibility of selling shares instead of the property (tax benefit).
Disadvantages:
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Higher incorporation and maintenance costs (accounting, minutes, etc.).
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It may involve double taxation if profits are withdrawn as dividends.
Tax implications:
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The company declares income, pays VAT and corporate income tax.
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You can deduct operating costs.
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The regime depends on the type of legal entity (flow, accumulation, etc.).
3. Transfer deed through a bank trust (foreigners)
What does it mean?
For foreigners, Mexican law stipulates that they cannot directly acquire property in the restricted zone (50 km from the coast). Instead, they must do so through a trust with an authorized Mexican bank.
Example:
John Smith, a U.S. citizen, buys a beachfront condominium in Mazatlán. He opens a trust with BBVA where he is the beneficiary.
Advantages:
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It gives you the right to use, enjoy, sell and inherit the property.
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It is renewable every 50 years.
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The property can be sold easily if it is up to date.
Disadvantages:
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Annual cost of maintaining the trust ($500 – $1,000 USD on average).
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It requires bank management and may take several weeks to set up.
Tax implications:
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The beneficiary must comply with Mexican tax laws if they rent or sell the property.
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A trust is not a business: it is merely a legal vehicle to guarantee property in accordance with the Constitution.
Recommendations by buyer type
| Buyer profile | Recommendation |
|---|---|
| Mexican, first property to live in | Write as a natural person |
| Mexican with multiple properties or a business focus | Registering as a legal entity |
| Foreigner without Mexican nationality | Mandatory bank trust |
| Foreigner with extensive business plans | Trust + Mexican company (in some cases) |
Conclusion
Choosing how to register your property in Mazatlán has legal and tax implications that can impact your long-term investment. If you are Mexican, you have more options and benefits, but if you are a foreigner, a trust remains the safest and most common method. In all cases, we recommend consulting with a local notary and an accountant specializing in real estate to make the best decision.
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