Yave, a Mexican proptech focused on offering mortgages in a 100% digital way, received in 2023 a seed financing round for 7.5 million dollars in November of last year, which will be used in 2023 to facilitate the purchase of housing for foreigners and create alliances strategic.
Through the platform they seek to attack the foreign market with or without residence that still presents complexities when buying a house with credit and that in recent years has been more interested in residing in Mexico.
During his participation in Centro Urbano Home , Bernardo Silva, CEO & Co-Founder of Yave, explained that Mexico has a great opportunity to offer vacation homes to foreigners, which is why his company decided to start serving this new market.
“The pandemic triggered digital nomads to start looking for other housing opportunities, we decided to attack this niche,” he commented.
In 2022, 27.8 million foreigners entered the country, of which 543,000 are residents, according to the Ministry of the Interior, so the opportunity is wide.
However, there can be some obstacles for foreigners who wish to buy a home here. One has been the need to purchase property through a real estate trust (fideicomiso), a contract that allows foreigners to buy within Mexico’s restricted zones, which includes any land within 50 kilometers of the coast and 100 kilometers of any national border. With a fideicomiso, a Mexican bank acquires real estate property on behalf of the foreign buyer.
But another frequent concern, one Yave wants to address, is foreigners’ lack of credit in Mexico, which generally means that they must buy a house outright with no access to a mortgage here.
In addition, in the current year they will launch Cofinavit credit with Infonavit, so the beneficiaries will be able to benefit from Yave’s tools while maintaining interest rates of between 9% and 11% per year.
It is worth mentioning that Yave is the first proptech to offer a 100% digital mortgage in Mexico. It recently raised capital that will be used to improve the platform’s processes and customer service.
HOW TO BUY A PROPERTY IN MEXICO IF YOU ARE A FOREIGNER?
Can a foreigner buy a house in Mexico?
Mexico has become a very attractive country for tourism and foreign investment. Its climate, culture and landscapes, typical of an artistic postcard, have increased the capital invested in many sectors, including real estate.
The acquisition of real estate within Mexican territory is not exclusive to Mexicans. Although foreign investment of this type has been the cause of great controversy, foreigners can buy a house in Mexico. as long as it is under an agreement with the Federal Government – through the Ministry of Foreign Affairs -.
In this agreement, better known as the Calvo Clause, foreigners obtain permission to acquire a property in Mexico , through which they agree to “consider themselves as nationals with respect to said assets . ” In other words, they renounce the protection of their governments to resolve any dispute related to the property —with the risk of losing assets or investments if they fail to comply with the agreement.
Within this agreement there are two major exceptions:
1. Parcels or common land.
2. Properties located in the restricted zone, which corresponds to a strip of 100 km along the borders and 50 km wide on the coasts.
What taxes must a foreigner pay when buying a house in Mexico?
When a foreigner buys a property outside the restricted zone, he only has to agree with the Mexican government that he be considered a national in relation to that acquisition. This is a procedure that does not have a special cost.
Foreigners who follow this process must pay their respective taxes. The seller can exempt or pay the Income Tax (ISR) and, whoever buys, must pay their acquisition taxes, rights, fees and notary expenses.
What does a foreigner need to buy a house in Mexico?
To acquire a property outside the restricted area, it is necessary to process the corresponding permits at the Ministry of Foreign Affairs. These must be requested in person at the Ministry of Foreign Affairs, specifically at the General Directorate of Legal Affairs in Mexico .
There are financing options available for foreigners , all of them with different requirements and procedures. If you got here, you are not Mexican and you are interested in buying a property in Mexico, we have good news for you.
With Yave you can obtain a mortgage loan with a 100% online process, whether you live in Mexico or abroad – you only need to be present at the signing of the deed – .
We offer you:
- Competitive fixed rates.
- Credit approval in 12 hours and purchase of the property in less than a month.
- Advice and review of the property to ensure that it is in order.
- Greater loan than that offered by a bank.
Requirements to buy a house in Mexico with Yave
- Minimum age of 21 years (for the maximum age, the sum of the age plus the credit term must be a maximum of 75 years).
- Minimum amount of MXN $500,000.
- Net monthly income of at least $15,000 per month.
- Minimum property value of MXN $700,000 and maximum of MXN $15,000,000 (located outside the restricted zone).
- Proof of income from payroll / under some salary scheme: 3 months of pay stubs and 3 months of bank statements.
- List before the SAT and have the Federal Taxpayer Registry (RFC).
- Have a credit history in Mexico (if you have a credit history in any other country, you will also be asked for a credit report from the other country).
- Permanent or temporary residence (formerly FM3 and FM2).
- Valid passport.
Are you a foreigner want to buy a property in Mexico?
If you are a foreigner and you already have your RFC, you can pre-approve your mortgage credit in 3 minutes and see how much we lend you! If you do not have your RFC, contact us or write to [email protected]