Frequently Asked Questions

Mar 19, 2023

May foreigners own real estate in San Miguel de Allende?

Yes, foreigners may legally and safely acquire direct title to real estate in most of Mexico, including in and around San Miguel de Allende, unlike coastal and border areas where foreigners are restricted to ownership through a Mexican company or fiduciary trust (fideicomiso) administered by a Mexican financial institution.

What is required for foreigners to acquire real estate ownership in San Miguel de Allende?

  • Valid passport
  • Proof that the foreigner is legally in Mexico: Tourist Visa/FMM or Temporary or Permanent Resident card
  • Proof of residence address: valid driver’s license, utility bill or bank statement less than 90 days old
  • Copy of the title deed (escritura) of the property to be acquired
  • A document, commonly referred to as a “permiso” (permit) application, submitted to the Mexican Secretary of Exterior Relations (Secretaria de Relaciones Exteriores – SRE) whereby the foreign buyer(s) specify the real estate being acquired, and agree that Mexico will have complete legal jurisdiction in all matters related to the property. The cost for the “permiso(s)” is approximately $400 USD for each foreigner acquiring ownership.

How is acquiring real estate in San Miguel different than in the USA?

Unlike in the USA where real estate transactions are typically formalized with the assistance of a title company, property ownership transfers in Mexico are overseen by a Notary Public (Notario Público).

A Notario in Mexico is different from a Notary in the USA where almost anyone can become a Notary Public, nor is a Mexican Notario similar to a Canadian Notary Public who must meet a few more stringent requirements than in the USA. A Notario in Mexico must be an attorney, must have years of practical experience in the profession, must pass a highly technical examination AND then must be appointed as a Notario by the Governor of the state in which they are working.

The Notario is responsible for:

  • Assessing and collecting any applicable federal, state and/or local capital gain and acquisition taxes from the individuals involved in the transaction
  • Preparing, witnessing signatures, and registering the public deed
  • Acquiring certification that the property is free of liens and municipal debt
  • Verifying the property’s land/construction measurements with an official tax appraisal survey

How much are the closing costs for buyers in San Miguel de Allende?

Buyers’ closing costs in San Miguel amount to around 5.2% of the declared purchase price, including the Notario’s fee, certification of freedom from liens, tax appraisal survey, new title deed registration and an acquisition tax of up to approx. 4%.

How much are  annual  property taxes in San Miguel de Allende?

Annual property taxes in SMA are relatively inexpensive. For example, the 2023 property tax was less than $250 USD for a client of ours who bought a home here in 2022 for $450,000 USD.

Do  I really need a real estate  agent in SMA?

Without thorough knowledge of the local language, laws, cultural idiosyncrasies and the potential pitfalls most foreigners would not anticipate, prospective buyers as well as sellers would be well advised to view a qualified agent here like an insurance policy – better to have and not need, than to need and not have. Unlike an insurance policy, an experienced and ethical agent can help you avoid losses before they occur.

The lack of strictly enforced agent accreditation and standardized real estate contracts here obviously creates conditions conducive to buyers and sellers finding themselves in at least uncomfortable if not extremely costly circumstances.

Less obvious are the inherent risks permitted by the lack of strictly enforced regulations requiring agents here to disclose exactly whose interests they primarily represent, and facts known to the agent that might negatively influence a buyer’s decision.

Opportunities that test the depth of an agent’s commitment to honesty and ethics occur often, especially in locations like San Miguel de Allende where foreign buyers’ schedules frequently encourage expedient decisions relying more on confidence than on independent due diligence.

Is it Safe?

Sep 02, 2017

San Miguel de Allende enjoys being within 8-10 hours driving time to many of Mexico’s most popular beach destinations like Puerto Vallarta and Zihuatanejo/Ixtapa, or to the USA, however, because we are not close to any border crossing, port of entry, prohibited plant cultivation area, or along any of the corresponding transit routes, we have a sort of geographical immunity from the terrible consequences of the “war on drugs” afflicting other parts of the country.

Of course we have crime here like just about anywhere in the world , but there is nowhere my family and I would rather live or feel safer, every day we are joined by more Mexicans and foreigners who feel the same, and having served as an instructor at our local police academy, as well as a first responder with the Red Cross here, I have a bit more than just statistical insight in this regard.

The number of U.S. visitors to Mexico who arrived by plane increased by 14% in the first half of 2017 compared to the same period in 2016, despite the negative news and official warnings about crime in some locations. And the number of flights between Mexico and the U.S. has increased by 7.5% during the same period. “We are very optimistic despite the situation . . .  We will maintain frequencies because we believe in the Mexican market,” said American Airlines’ Mexican head Antonia Gutiérrez.

 

San Miguel de Allende

Retirees are Lured by San Miguel de Allende’s Charms

Oct 03, 2016

San Miguel de Allende has been a favorite among foreign retirees since the late 1960s. Nestled among low hills, this historic city is mostly flat at its center, making it very walkable.

El centro San Miguel is also chock full of delights. The number and variety of first-class restaurants and fine shops per block is unmatched anywhere else in Mexico. Large hacienda-style houses have been divided into patio restaurants, coffee houses, cantinas and boutiques catering to expat retirees. Most of these establishments are owned and managed by Mexicans native to San Miguel, famous for being friendly and gracious.

Foreign artists and bohemians began to take note of charming, colonial San Miguel in the 1940s and 50s, after the establishment of the Instituto Allende. The institute offered classes in the fine arts and attracted students from around the world. Artists came to study and then settled in. This town, they discovered, was blessed with great weather. Plus, back in those days, San Miguel real estate was laughably inexpensive.

The more artists who arrived on the scene, the more colorful, alive and full of energy the city became. Eventually, the eclectic, lively community of artists got the attention of another group of foreigners also in the market for great weather and low costs: retirees. Like the art students who preceded them, foreign retirees came to take a look and found their feet stuck to the sidewalks and plazas of this beautiful city. They just couldn’t leave. Today, decades later, thousands of them continue to call San Miguel home, which means new retirees can tap into a developed and English-speaking infrastructure of support.

San Miguel is centrally located in Mexico, making it a good base for exploration of the country in all four directions. The colonial cities of Guanajuato and Queretaro are just 90 minutes away. Mexico City is about four hours away to the south, Morelia about 3.5 hours southwest and Guadalajara about 4.5 hours west. The Texas border at Laredo is roughly 600 miles north or 10 hours of driving. The closest beach on either the Pacific or Caribbean side is about 600 miles away.

The Parróquia of San Miguel is the standout architectural feature that first traps the eye. Every day at almost any time of day or evening the benches of the central park (El Jardín) across from the Parróquia are full of foreigners and Mexicans admiring the church facade, reading, people watching and playing with their children. The park and church are magnets for the townsfolk, local and foreign.

Equally intriguing along the streets radiating out from El Jardín are markets, colorful houses overflowing with bougainvillea, frequent musical parades, unexpected architectural details and neighborhood festivals. Add brilliant skies, friendly faces and the smiles of pretty girls, and you understand how easy it is to find yourself stuck here. Many first-time visitors begin looking at properties for sale within three or four days of arrival.

San Miguel is not one of the low-cost standouts among overseas retirement options. Years of serving both a large resident expat community and hordes of foreign visitors have pushed prices up. Real estate values can compare with those in U.S. cities, and restaurant and shop prices in town can, likewise, be on par with prices in the less expensive areas of the United States. Depending on where you’re coming from, you might find the cost of living in San Miguel to be roughly the same or much cheaper.

Property taxes are negligible, and the moderate weather translates to low utility bills. Based in the historic center of town, you wouldn’t need a car, and transportation costs would be minimal.

In San Miguel, though, the point isn’t the cost of living but the quality of life, which competes with that available in any city anywhere in the world. In 2008, the historic center of San Miguel de Allende won UNESCO World Heritage Site designation. And, in 2013, Condé Nast Traveler magazine named San Miguel de Allende the best city in the world.

San Miguel is a social town par excellence. Opportunities to meet other expats abound. Classes in dozens of subjects are available at the university, and the prolific charitable organizations operating here are always looking for volunteers. This can be an excellent way to make new friends among both the expat and Mexican communities.

The Top Five Reasons to Move to San Miguel de Allende

Mar 11, 2014

I recently moved to San Miguel de Allende, and I have fallen hard. Brightly painted buildings line its cobblestone streets in shades of rose, azul, and naranja. I glance into doorways to see tortillas being made by hand. I smell roasting chiles, hear the bells ring in the pink church, and watch as golden light slants across the huge wooden doors.
It’s easy to see why people choose to move here.  In fact, 10 percent of San Miguel’s residents are expats.
I’ve met more expats from Canada than anywhere else.  So, I set out to find out what exactly it is that so many Canucks have chosen to move to San Miguel de Allende.

Here are the top five reasons that Canadians move to San Miguel de Allende:

1. The Weather

The number one reason that Canadians cite for moving is the weather.  They are tired of the cold winters in Canada, and not only is San Miguel de Allende warm and sunny, it also has some of the most perfect weather  you will find anywhere.
It’s rarely uncomfortably hot or cold.  You don’t need air conditioning.  People use space heaters or fireplaces during the chillier times, but that’s usually just in the early mornings and evenings.  Even on the days that there are thunderstorms, the sun usually comes out at some point.

 

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