From the beaches of  Puerto  Vallarta, Riviera Nayarit, Cabo San Lucas, LA Paz, Acapulco, Ixtapa – Zihuatanejo  and Cancun to the culture of the Yucatan Peninsula,  Zacatecas, Michoacan and from the metropolises of Mexico City, Guadalajara and Monterrey to the archaeological wonders of Oaxaca, Quintana Roo and Veracruz, Mexico is home to some of the most incredible cities and tourist destinations in the world. People visit for many reasons, to enjoy the scenery, the weather and the food.  Mexico has become a world known place for people seeking retirement and vacation homes. The growth of the country has also made investing in Mexico popular on the financial front.

Retiring in Mexico

People are learning that retiring in Mexico takes a fraction of the savings that retiring in many other countries does. The country offers diversity in retirement locations ranging from quiet, commotion-free areas to large cities full of excitement and activity. Mexico has decent locations where you can live for as little as $700 per month and gorgeous, ritzy locations where you can live for around $5,000 per month. A luxury home on the beach would cost  50 percent of what one would cost in the United States. For example, a beach home in the States costing two million dollars would go for approx.  $1,000,000 in Mexico.

The country offers one of the most desirable climates in the world. In Mexico City, it is almost spring-like all year long. However, due to the high elevation, it can freeze there in the winter. Other lower areas are more desert-like and they are hot in the daytime and cool in the evening. The hottest areas are along the coast, where it is often very hot and humid. So, you have a variety of climates from which to choose should you decide to visit or relocate to Mexico.

Health care in Mexico is attractive to many potential retirees. Even people from the U.S. who do not retire there visit for medical care and prescriptions because much of it is more affordable than in the United States. If you have a medical policy in the U.S., you may be able to keep that coverage. Another option as a foreigner is to apply for IMSS, which is Mexican Social Security. It covers dental, eye care and medical. If neither of the above works for you, you may be able to purchase global medical insurance, group international insurance, international health insurance or traveler medical insurance.

You do not have to move to a place to invest in it. Business is booming in Mexico and it seems that it will continue to do so. One reason is that Mexico is perfectly situated as a hub for trade with many continents and large countries. The government is drastically reducing trade tariffs to bolster and easier facilitate worldwide trade. This affects products such as cars, chemicals, clothing, fabric, steel and more.

In fact, the country is the number one supplier of car parts and trucks for the United States. It is also the top supplier of smart phones and is the number two producer of televisions. It is the top exporter of agricultural products such as avocado, mango, organic coffee, papaya, watermelon and other melons and it is the second leading exporter of tomatoes.

Other industries in which it is a top producer or exporter include aerospace, medical instruments and silver and other types of mining. With regard to aerospace, Mexico has more companies in that industry than any other country in the world. Queretaro is the most lucrative aerospace city on the North American continent and it provides the greatest return for shareholders.

Part of the reason for these numbers is the increasing education provided for its people that is leading to skilled workers. Another reason is that production is less costly due to a good exchange rate against the dollar, inexpensive transportation costs and many Free Trade Agreements. Yet another factor is the stability of the economic environment, which has spurred much Foreign Direct Investment (FDI), for which the country ranks eighth in the appeal ranks.

Mexico has much to offer including a tasty cuisine and hospitable people. Services are more affordable and for anyone setting up home there, the construction industry has a reputation for quality. If the thought of living in Mexico pleases you, consider purchasing a home there and start exploring different cities such as Puerto Vallarta and the Riviera Nayarit on the Pacific Coastline and which are located in the second largest Bay in North America.

You are most certainly to spend less and find what you are looking for in regards quality, and lifestyle.  You can use a <a href=”http://www.simplyfinance.co.uk/calculators/mortgage-cost-calculator.html“>mortgage calculator</a> to determine how much a payment would be for your investment if you required some kind of credit to purchase your retirement, investment or vacation home in Puerto Vallarta and the Riviera Nayarit areas.

Make sure you consult with a real estate professional that belongs to AMPI (Mexican Associations of Real Estate Professionals).

By:  www.searchsciences.co.uk  /  specially written for Prudential California Realty, Vallarta Division.

*Article By Don D. Nelson, Attorney, CPA

When you are renting out your real property in Mexico, as a US Citizen or permanent resident, you must not only comply with all Mexican tax requirements but you must also comply with the Internal Revenue Service’s US income tax return filing requirements.  The rules are almost the same as those for rental property located in the US, but with some variations.

• 1. If you own the Mexican rental property through a Fideicomiso, or outright in your individual name, you report all of your rental income and expenses on Schedule E of your Form 1040.  All of the allowable expenses are the same (except as stated below) as for US property.
• 2. Expenses you can deduct include management fees, interest, property taxes, utilities, repairs, maintenance, association dues, insurance, depreciation, and other miscellaneous expenses.
• 3. Unlike property located in the US, you must depreciate the property (amount allocatable to the structure) over a 40 year period rather than shorter times sometimes allowed for US property.
• 4. You can take a credit against your US federal income tax for income taxes paid to Mexico on your net rental income after deducting all expenses.  That credit is limited to the amount of US Federal tax you paid on that rental income on your tax return.  Any unused foreign tax credit can be carried over to future year.  Most states do not allow any credit for income taxes paid foreign countries. That credit can be taken for Mexican income taxes and any income tax imposed by a State in Mexico. That state tax income  is 3% in Baja California Sur. Some states in Mexico have no income tax.
• 5.  Any IVA or occupancy tax collected from the renter should be included in your rental income, but then you can deduct out those  taxes so you do not have to pay any tax on those items.  IVA in the Baja California is 11%  and 16% in much of the rest of Mexico.
• 6.  The  same restrictions and limited allowable deductions for “vacation homes” apply when you have occupied the property yourself part of the time and rented it out to third parties at other times.
• 7.  When the property is sold (if it is held in your individual name or in a Fideicomiso) your  net gain is taxed in the US at the applicable lower capital gains rates, and you can claim a credit against your US tax on the sale for Mexican capital gains taxes paid on that profit to Mexico.

If the property was used for the 2 years during the previous 5 years prior to sale as your personal primary residence (you must actually live in it full time during that period), you may be able to exclude up to $500,000 of the gain from your US income taxes under the exclusion allowed for sales of personal residences. If the property was rented out part of that time, some of the gain on sale will be subject to US income tax.  The Mexican tax rules for exclusion of gain on your primary residence are different than those in the US. You should consult a Mexican tax advisor to learn more.

If your Mexican property is held through a Mexican corporation, there can be adverse US tax consequences while renting out the property and upon sale on your US tax return.  With the proper type of Mexican corporation (SRL de CV), certain flow through elections with the IRS can be made for US tax purposes which will negate almost of these US tax problems.  These elections are only made for US tax purposes and do not in any way affect the way your Mexican corporation is taxed under Mexican law.

US Tax Forms That May be Required:

Form 3520/3520A:      If you own your Mexican rental (or personal residence or second home real property) through a Fideicomiso, you must file these forms each year to avoid extreme penalties.  These forms are filed separately from your personal return.  The first form is due on March 15^th following the end of the calendar year and the other form is due on the extended due date of personal tax return.

Form 5471:  If your Mexican real estate is held in a Mexican corporation, you must file this form each year if you own 10% or more of the shares (actually or constructively) in the corporation. This form is due on the extended due date of  your personal return. The IRS can impose a $10,000 per year penalty for filing this form late or not at all.

Form TDF 90-22.1:  This form reports your ownership in foreign bank and other financial accounts. It would include any accounts where your property manager or accountant is using to collect rents or pay Mexican taxes and rentals. If the highest total of all of your foreign financial and bank accounts when combined together equal or exceed at any time $10,000 US per year, you must file this form to report details of all accounts.  It is filed separately from your tax return and is due on June 30^th following the end of each calendar year. The due date cannot be extended. The IRS can impose a $10,000 penalty for filing the form late or not at all.

Form 8938  If  you have over $50,000 or more in foreign assets you may be required to file this form. Foreign assets include Mexican bank accounts, Fideicomisos held property, Mexican corporations, and other Mexican financial assets. (as well as those located anywhere in the world outside of the USA).

Mexico Also Taxes Rental Income:  Mexico imposes income taxes, IVA and other taxes on all rental income derived by Landlords from renting properties in Mexico.  You must pay these taxes even if you do not live in Mexico. The rules are complex and failure to comply with those rules can result in serious monetary and other problems with the Mexican taxing authorities. We recommend you contact a Mexican accountant, or rental property tax expert to learn what it takes to be in legal compliance with those Mexican tax laws.

*Don D. Nelson is a US Attorney and CPAwho has specialized in helping Americans who own real estate and businesses in Mexico, or live in Mexico with their US Tax planning and compliance for  over 22 years.

You can reach Don D. Nelson at :Email: ddnelson@gmail.com

Mexican Phone: 011 52-624-131-5228  US Phone : (949) 481-4094

Mother´s Day Celebration in Mexico is always celebrated on May 10th, it is an extraordinarily special day where many people show their appreatiotion towars mothers and mother figures. It is the custom to stand outside of the mother’s house after midnight and serenade their mother. This day is also celebrated with mass at the shrine of the Virgin of Guadlupe; for on this day she symbolizes motherhood; after mass the orchestra plays “Las Mañanitas” to the Virgin (this is the birthday song of Mexico).

Mexico celebrates mother’s day in the honor of womanhood and making others realizes the strong role of a mother in the family, who binds everyone together. Its importance in Mexican culture is noted with the fact that it is regarded as an especially significant holiday.

In several schools mother’s day many  functions are organized where children present skits, songs, handmade gifts and cards made especially for her at school.

In Puerto Vallarta the beach, restaurants and streets are overflowing with families celebrating Mother’s Day. The local stores area packed with colorful flowers, especially roses.  So on this and every day don’t forget to show you mother how much you love her.

“Prudential California Realty-Vallarta Division wishes a Happy Mother’s day to all you wonderful mothers”

You can email us at: info@prurealtypv.com

It is called “Humpback Whale” as a result of their diving method,  which is arching its back and raising its dorsal fin, thus giving the impression of a large humpback.  These mammals average in length between 14 to 16 meters, with one of the largest recorded at 18 meters; the average weight of these mammals range from 30 to 50 tons and depends on the accumulated fat and time of the year weighted.

These incredible aquatic mammals are spread throughout the globe and can be found in both the Pacific and Atlantic Oceans and also in both hemispheres North and South. During the reproductive cycle which peaks in the summer, the colonies of Humpback Whales remain separated and they don’t interact for an approximately 6 months.

Humpback Whales concentrate in 3 different areas The Nor oriental Pacific (Marianas Islands and Taiwan), The Central Pacific (Hawaii) and Nor occidental Pacific (Mexico’s Coasts), Bahia de Banderas / Bay of Banderas , Isabel Island and Revillagigedo Islands.

There are 4 locations in the Coasts of Mexico where Humpback Whales can be found during the winter months.

The Baja California Peninsula in September and May; this is the route they take to the South Occidental Coast of Mexico, to the Tres Marias Islands, Isabel Island and of course our beloved Bahia de Banderas / Bay of Banderas where you can spot them if you are lucky from November to mid-April.  This area is indeed one of the main locations for the Humpback Whales In Mexico’s Coasts.

You can also find them in the Revillagigedo Islands from January to May and from November through May in the North Gulf of California.

It is presumed that on their journey to Alaska, the main migratory feeding ground for the winter population of  Humpback Whales in the Mexican Coasts (Isabel Island, Southern Baja California and the Bahia de Banderas / Bay of Banderas), is the Revillagigedo Islands.

It is very interesting to find out that Humpback Whales, are part of the whale group with baleen plates, which are the true whales and are known as “Mysticetos”.  The filter-feeders have baleen plates instead of teeth, and they also have two nasal passages.  Amazingly enough, they can also have different color patterns on the underside of their fluke, it ranges from totally white to totally black; you can notice marks, lines, scars, scratches, cracks together with the shape and size of the central notch, all of these contribute to providing distinctive characteristics to each Whale which makes it then possible to recognize each individual (this is like fingerprints in humans).   There is also Photo Identification of the dorsal fins and underside of the fluke.  All of these help biologists determine colony size, behavior and migratory habits.

The Universidad Nacional Autónoma de Mexico (UNAM), Mexico’s National Autonomous University since 1982 has incorporated photo identification studies of Humpback Whales in Mexico’s Coasts.  In the Bahia de Banderas area (Bay of Banderas), there are approx. 250  photo identifications.

In an effort to help the University with their studies, we need all of the Whale Tour Guide Operators, Tourist Guides and everyone else who has had the opportunity to take a photo of this magnificent mammal, to come forward with their photos, as it is calculated that since the late 1990’s there could be an approx. of 2000 photos taken that could well identify many of these regular visitors to our incredible Bahia de Banderas / Bay of Banderas (Puerto Vallarta).

The Humpback Whale is a regular visitor to our beloved Bahia de Banderas / Bay of Banderas (Puerto Vallarta), so if you decide to go Whale watching while visiting, make sure you go with an expert and reputable Whale Tour Guide Operator, as these mighty mammals are sensitive to boats noise and the approach needs to be the right one.

Our amazing Planet EARTH gives us these and many more natural beauties to enjoy, respect and protect.  Do your part.

This  article is courtesy of  Broker/Partner Tere Kimball and she can be reached at tere.kimball@prurealtypv.com

On November 20, 1952, the General Assembly of the United Nations (UN) met for the sole purpose of reaffirming the universal rights of the child, and to be celebrated in every country in the world this day would be used to develop activities for the welfare of children worldwide there for on December 14^th 1954 the United Nations called for a Universal Day of the Child suggesting to governments celebrate the day at a time that each one of them deemed advisable.

But Latin America was ahead of the game, Mexico in particular, where official celebrations of Dia del Niño began in 1916. The official Día del Niño in México is April 30^th.

In Mexico Children’s Day is always filled with activities, and children look forward to a holiday of their own with fun, gifts and special events.

Many schools celebrate the day before and parents are invited. Of course, there are usually no classes on Children’s Day itself, even though it is not an official holiday in the school calendar.

On Children’s Day, the main focus is on the children and making them feel special. In shopping malls all over Mexico, special events with clowns, magicians, music, shows and balloons take place.  So on this day if you see more children than usual in Puerto Vallarta´s shopping centers or on our beautiful Malecon the reason would be they are celebrating their day.

*Article courtesy of Prudential California Realty-Vallarta Division info@prurealtypv.com

Holy Week in the Christian year is the week immediately before Easter, in Mexico it is called Semana Santa and is along with the Christian season, the most important Catholic Holiday in Mexico. Most of Mexico City flocks to the coastal like Puerto Vallarta and Riviera Nayarit and some upscale highland area.  Semana Santa is also a festive occasion, a time of celebration, when people come together to socialize and enjoy themselves. Throughout the country there are solemn but colorful parades, mass, and often fireworks so if you visit during this time, you will be able to see special processions and religious celebrations.

Two story house with 3 bedrooms 3bath located in Flamingos Club Residential, the Royal Palm development is a gated community with 34 villas and a Sports Club. The villas are designed with natural light throughout, and high ceilings, which adds to the feeling of spaciousness.  Carefully selected finishes throughout.

Casa de 2 plantas con 3 recamaras 3 baños ubicada en Flamingos Club Residencial, el desarollo de Royal Palm  es un coto privado de  34 villas que cuenta con un excelente Casa Club.  Las villas son diseñadas con luz natural, y techos altos para el sentimiento de mucho espacio.

Precio/Price $199,000USD

Puerto Vallarta Restaurant Week, Special Edition Tianguis Turistico 2012 participating restaurants:

• Barcelona Tapas
• Coco’s Kitchen
• Coma 7
• Daiquiri Dick’s
• De Santos
• El Arrayán
• Frascati 
• Ginger Garden
• India Gate
• Le Kliff
• Lobo Lui’s BBQ Shack
• Nicksan
• No Way José!
• Peking
• Taste @ Casa Cupula
• The River Cafe
• Trattoria Michel

I cannot say enough good things about Real Estate professional Grace Ramirez of Prudential Vallarta. I have owned property in Puerto Vallarta for seven years and I had never met someone as enthusiastic, knowledgeable, trustworthy and down to earth who keeps and maintains great rapport with her clients. I had the opportunity to see her in action and she simply has an impressive handle on the heartbeat of Puerto ValIarta and on all aspects of real estate. One thing that makes her stand out from the rest is her communication skills; this characteristic is in my opinion what makes Grace one of the very best in the business. My overall experience was extremely satisfying and I highly recommend her services to anyone searching to purchase or sell property in the area.
Sincerely,
Linda Olvera

*Article courtesy of AMAR (Mexican Association for Retirement Comunities)

We in AMAR  , continue to endeavor to serve as a bridge between the communities of expatriates in Mexico, and the actors that interact with them; such as governmental officers at every level and providers of goods and services.  But, above all, we continue to deepen the knowledge of what makes Mexico a favored place for those communities.  I have no doubt that “The Baby Boomers 50+ Living Show” a marketplace where providers will let retirees and expats know what kind of goods, devices  and services they can provide to give them a Mexico’s lower cost of living and affordable quality of life, will contribute to this effort, and that your kind presence in this event will bring you practical knowledge about living in Mexico.