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Inmigrations and Foreign investment
File for your FM3 today.
Protect your investment in Mexico. Find out more about the array of legal solutions that we have for you.
Our services for foreign nationals residing in Mexico include:
- Immigration Status 3 (FM3), Immigration Status 2 (FM2)
- Immigration permits
- Renewal of immigration status
- Change of immigration status
- Filings with Mexico's National Registry of Foreign Investment
- All other foreign national filings in Mexico
Our highly qualified bilingual staff will explain to you the process for any immigration procedure in Mexico.
If you already live in Mexico, maintain your immigration status to insure that your activities or job will not be interrupted and to avoid penalties and fines.
Immigration
If you are a foreign national and intend to make Mexico your permanent place of residence, this is information that you need to know:
We are immigration lawyers and advisors to foreign nationals.
Having access to the proper documentation and a good channel of communication with our Client, our turnaround time for immigration documents is quick, to say the least.
If you are in Merida, the Mayan Riviera, Playa del Carmen, Cozumel, Isla Mujeres or Mexico City, we are your best option if you are a foreign national seeking legal consulting. Our completely bilingual staff will assist you in everything that you need.
Migration Statuses and Categories
The article 41 of the Mexican General Law on Population (GLP), stipulates that foreign nationals may enter Mexico with two migration statuses:
- Non-Immigrants.- are foreign nationals that legally enter Mexico on a temporary basis, with permission from the Secretaria de Gobernación. There are different categories of Non-Immigrants such as (art. 42 GLP):
- Tourist
- Transmigrant
- Visitor
- Minister or Religious Associate
- Political Refugee
- Refugee
- Student
- Distinguished Visitor
- Local Visitor
- Provisional Visitor
- Correspondent
- Immigrants.- are foreign nationals that legally enter Mexico with the intention of residing here and eventually acquiring permanent resident status. There are different categories of Immigrants such as:
- Resident Pensioner
- Investor
- Professional
- Executive
- Scientist
- Technician
- Family Members
- Artists and Sports Professionals
- Assimilated Individuals
Immigrants who reside legally in Mexico for five years can acquire permanent resident status. A permanent resident is a foreign national who acquires the right to reside permanently in Mexico.
The Mexican Law stipulates different kinds of Migratory Forms (Mexican Visas) according to the intentions of the foreign nationals, but the most commons are:
a) FM2: This Migratory Form apply for any category of Immigrants.
b) FM3: This Migratory Form apply for Non-Immigrants
In this case, you must submit several documents to the National Migration Institute
CONSULTING FOR FOREIGN NATIONALS.
If you are a foreign national, you are going to find this interesting:
This is important information for you if you are a foreign national.
Fideicomiso in Mexico.
If you are a FOREIGN NATIONAL looking to invest on beach property - Cancun, the Mayan Riviera, Playa del Carmen and some areas of the Yucatan, for example - or on a property on or near the border, you may need to create a FIDEICOMISO. The Fideicomiso will guaranty your investment and make available to you the same rights and obligations of any Mexican owner.
In Mexico, only BANKS are authorized to control and manage Fideicomisos.
Fideicomisos allow foreign investors to purchase and sell homes, commercial property or tourism property. The first step towards a fideicomiso is to open a "Fiduciary Account" with the bank of your choice. Through this account you will be able to effect all of the operations of the Fideicomiso. The person who creates a fideicomiso is called a "Fideicomisario" (equivalent to a beneficiary of a turst), and holds all of the rights of ownership on the property throughout the life of the fideicomiso.
The owner of the property is called a "Fideicomitente" (equivalent to the settlor of a trust). Through a fideicomiso, the "Fieicomitente" conveys the title of ownership and the right of use to the fideicomiso, who in turn conveys it to the fideicomisario generally for 50 years You may also renew those 50 years if you so desire. To renew a fideicomiso for another 50 years you need to make a filing with the Secretariat of Foreign Affairs within 360 days before and 180 days after the termination of the fideicomiso.
There is a list of REQUIREMENTS AND DOCUMENTS needed to open the Fiduciary Account. That list generally includes:
- Letter indicating the name of the Fideicomisario, the Fideicomisario's nationality, occupation, address and telephone number, copy of his or her passport or immigration form, and a copy of a proof of address (any bill with his or her address on it).
- Name, nationality, address and telephone number of the Fideicomisario's beneficiary or beneficiaries for in the case of the Fideicomisario's death during the life of the Fideicomiso.
- Copy of the title deed to the property indicating its address, delimitation, exact location and description, together with a certificate of non-indebtedness of Federal and municipal taxes obtained by the seller.
- The agreed purchase price.
Once you have furnished these documents to the bank, the bank submits a FIDEICOMISO REQUEST to the Secretariat of Foreign Affairs, who is in charge of approving and controlling the legality of purchase-sale transactions by foreign nationals. Once the Secretariat of Foreign Affairs issues its approval, the bank requests a notario público to legalize the rights of ownership of the property. The notario público in turn records the conveyance of rights in the PUBLIC REGISTRY OF OWNERSHIP thereby legalizing the new owner's right to the property. Our law firm can guide you to successfully protect your investment throughout all of this process.
A Fideicomisario obtains the RIGHT to possess the property to reside in it, renovate, build, rent, mortgage, sell or convey it. A Fideicomisario also acquires OBLIGATIONS in connection with the property such as paying the property tax, water and light bills, maintenance or annual fees as appropriate, and notify the trustee bank and a notario público of any changes affecting the property.
What happens if the owner of a Fideicomiso dies?
If the Fideicomisario in a Fideicomiso dies, the property will be inherited by the Fideicomisario's designees. With the Fideicomisario's death certificate and a valid ID, they bank will enter them as beneficiaries of the Fideicomiso. This procedure requires careful attention.
Can I convey Fideicomiso rights?
A Fideicomiso may be CONVEYED or SOLD while it is valid. It may also be conveyed or sold to another foreign national after securing the appropriate permit from the Secretariat of Foreign Affairs for the new Fideicomiso. If the property is conveyed or sold to Mexican national, the Fideicomiso will be cancelled and a title deed will be awarded upon a notario público.
Shipping Companies
If you are a foreign national and you are looking to start a shipping business, you need to be aware of the restrictions that you have as a foreigner and of the rules that apply to shipping companies, because to operate any business involving boats or scuba diving stores, you need to have a shipping company.
Here is the definition of a shipping company according to the Navigation Law:
"Article 16: A shipper or shipping company is a person or entity whose purpose it is to operate and market one or more vessels that it owns or of which it has possession, whether or not that activity constitutes its principal activity."
Moreover, Article 2 of the Navigation Law defines vessel as "Any instrument of any type and dimensions that is used for navigation".
Shipping companies - where a 49% foreign investment is permitted - are regulated by the Law of Foreign Investment. Therefore, we must underline that special attention must be given to any shipping company. Contact us. We will insure that you have proper legal advise.
National Registry of Foreign Investment
Do you know what the National Registry of Foreign Investment (RNIE) is?
R: The RNIE was created in March of 1973 by the Law to Promote Mexican Investment and Regulate Foreign Investment. Its purpose is to allow the Mexican Government to insure compliance of the provisions applicable to foreign investment and as a source of information concerning the way that foreign investment in Mexico behaves.
Do you know what filings need to be made with the RNIE?
R: The most important filing that is required by the RNIE is registering any Mexican business corporation having foreign participation. Others include notifying any changes of information previously provided to RNIE; quarterly income and expense reports; annual financial report; request of cancellation and insertion of notario público notices.
Who should request registration in the RNIE and in what section should the registration be made?
R: Registration in the First Section of the RNIE is required from foreign persons or entities and Mexican nationals who possess or acquire another nationality and whose address is outside Mexico and do business in Mexico on a regular basis.
Registration in the Second Section of the RNIE is required from Mexican businesses where there is a participation of foreign investment (including fideicomisos), Mexican nationals who possess or acquire another nationality and whose address is outside Mexico, if the investment is neutral.
When does the request for registration in the RNIE need to be made?
R: Generally, the request for registration needs to be filed within 40 business days after the first regular act of commerce by the foreign person or entity or the Mexican national who possesses or acquires another nationality and whose address is outside Mexico. Requests for registration in the Second Section of the RNIE need to be filed within 40 business days after the first day of participation of foreign investment.
How long before the RNIE responds to the filing?
R: 20 business days after the day when the filing is submitted. The request is considered as approved if after those 20 business days the RNIE has not responded.
What penalties apply if I fail to comply, exceed the term for filing or submit incomplete or inaccurate information in my request for registration, report or notice to the RNIE?
The penalty is equal to APPROXIMATELY between 30 to 100 valid minimum wages.
Who has the obligation to give notices to the RNIE?
R: Any foreign national person or entity and business corporation registered in the RNIE must notify it when any change in the information previously furnished to it occurs.
What is involved in the Quarterly Report?
R: A company's income and expenditures exceeding an amount equal to 3000 valid minimum wages that do NOT affect the corporation's capital.
Who is required to file the Quarterly Report?
R: Foreign nationals, persons or entities, and Mexican business corporations where foreign investment participates directly and are registered in the RNIE are required to file quarterly reports of their income and expenditures associated with new investments, re-investment of profits, withdrawal of new contributions, use of accumulated retained earnings and inter-company accounts, if they exceed an amount equal to 3000 valid general minimum wages.
When is the Quarterly Report filed?
R: Quarterly Reports are filed within 20 business days after the end of the appropriate quarterly period.
What is the Financial Report?
R: It is a report that those who are required to register in the RNIE file to renew their registration. The report is filed together with the form "Annual Financial Report (Renewal of Registration)".
When is the Financial Report filed?
R: Those registered in the RNIE must file their Annual Financial Report within the first seven months after the end of each fiscal year. The following schedule sets forth the month of the year when reports are due in alphabetical order by company name.
- A through D - April of each year;
- E through J - May of each year;
- K through P - June of each year;
- Q through Z - July of each year.
There are no exceptions made to this schedule.
What is the time of response by the RNIE?
R: 20 business days as of the day after the filing. It will be considered properly filed if the RNIE has not responded after 20 business days.
Time-Share
Do you know how Time-Share works?
Do you know what you commit to when you sign a Time-Share contract?
Did you know that you can cancel your Time-Share contract AT ANY TIME, BUT THAT IT IS BEST TO CANCEL IT within no more than 5 business days?
Did you know that if you cancel your Time-Share contract within 5 business days you should get back the full amount that you paid for it?
Did you know that Mexico's Consumer Protection Agency keeps a record of all Time-Share contracts?
LET US HELP YOU!
Time-Shares or vacation ownerships are systems to market hotel services. When you buy one, you acquire the right to hotel accommodations during a number of specific nights or weeks. Their selling point is that they guaranty accommodation and that you will not have to deal with rate increases or variations, and that you can later sell it or convey it.
Unfortunately, the reality for buyers of this kind of service is quite a different one. Maintenance fees are astronomically high, the chances of being able to sell or convey a time-share are slim, the information that you receive during their sales efforts many times fail to include the rights that you acquire, the quality of accommodations, additional or transportation expenses, the inventory of the units or the weeks available. When you sign a time-share contract you assume a many year long obligation to pay maintenance fees for accommodations that you will hardly use.
Buyers of time-share in Mexico should be aware that the time-share industry is regulated by Mexico's Federal Law for Consumer Protection and by PROFECO (Consumer Protection Agency), and that in view of that regulation all time-share products must abide by Mexican Official Norm 029-SCFI-1998, which among other requirements sets forth that all time-share contracts (contratos de adhesion de tiempo compartido) must be registered with PROFECO.
More importantly, you need to know that according to that norm, all time-share contracts must include a clause setting forth the time available for you to cancel your contract while being able to receive back the full amount that you paid for it. You should have no less than five business starting one business day after the day you signed your contract. LET US HELP YOU CANCEL YOUR TIME-SHARE CONTRACT.
If you are buying time share you will also want to know that there are different types. Some of these types include:
- Life, fixed week and unit. In this type of time-share, buyers receive an indenture that entitles them to use a specific unit during a specific week of each year, for life. It also entitles them to participate in the administration of the property in the understanding that the owner may rent, resell, exchange or donate his or her intervals.
- Right to use. In this type of time-share, buyers are entitled to stay in one or more hotels during a specific number of years (5-50). At the end of the agreed number of years, the rights revert to the developer. It works like a club membership, and is currently the most popular type of time-share.
- Fixed Time. In this type of time-share, buyers acquire a unit to use it during a specific week each year.
- Floating Time. In this type of time-share, buyers are entitled to use the property during a specific season of the year by reserving in advance in what is known as a "first call" or "first confirmation" system.
- Divided Week. This type of time-share is most convenient for people who take short vacations and are able to divide their intervals into separate trips - commonly between 3 and 4 nights in two different seasons. Here, all reservations are subject to availability.
- Biannual Property or alternate use. This type of time-share entitles buyers to use of the property once every two years. They are less expensive than annual time-shares and are therefore more attractive for people who do not take tame off every year or simply cannot afford the annual time-share.
With all of this information, if you are interested in buying a Time-Share you might agree with us that you need proper legal consulting from a team of professionals. Mexico Lawyers Firm is able to bring to you that consulting and the legal certainty and safety that a transaction of this magnitude requires. IF YOU ALREADY SIGNED A TIME-SHARE CONTRACT BUT YOU WANT TO CANCEL IT, WE KNOW EXACTLY WHERE TO GO AND WHAT TO DO.
