[ESTABLISHING A BUSINESS ENTITY IN MEXICO] 345
ii. Permanent Resident or Temporary Resident Visa for Family Purposes: applicable for (i) Mexicans or foreigners that hold the condition of temporary students; or (ii) for permanent foreigner resident that requests a visa for a foreigner which he/she may prove a family bond. iii. Working Visa: applicable for foreigners, to whom an individual or an entity legally incorporated under Mexican law extends a job offer. All of the abovementioned visas are issued for a limited period, but they are subject to renewals. In general, the Mexican government carries out actions to promote tourism in the country, therefore, different from other countries, in Mexico there are no severe restrictions for foreigners to enter the country. Real Estate Trusts In recent years, real estate trusts have also become important investment vehicles for foreigners who seek to invest their capital in Mexico. Trusts are regulated by, among others: (i) the Mexican General Law for Negotiable Instruments and Credit Transactions ( Ley General de Títulos y Operaciones de Crédito ); (ii) the LMV; and (iii) the LISR. The Mexican Congress, in order to make more attractive the investment of capital in the real estate market in Mexico, included in the LISR special tax benefits for Real Estate Investment Trusts ( Fideicomiso de Inversión en Bienes Raíces ) (“ FIBRA ”).
According to the LISR, in order for a trust to be considered a FIBRA and to have the tax benefits provided by the LISR, it needs to comply, among others, with the following requirements: i. to be executed pursuant to Mexican laws and with a Mexican trustee. ii. to have as its main purpose the acquisition or construction of real estates in Mexico that may be destined for lease, or the right to obtain income from the real estate. iii. that the real estate contracted or acquired by the FIBRA be destined to lease (or equivalent) and not be sold within a period of 4 years following the date the construction of the real estate was completed or as of the date of the acquisition of the real estate, as applicable. iv. that the trustee of the FIBRA issues trust certificates to represent the assets allocated in the FIBRA so that such certificates may be placed through a public offering in the Mexican Stock Exchange and registered before the RNV; and v. that the trustee of the FIBRA distributes to the holders of the relevant trust certificates issued through the public offer, at least once a year and no later than March 15th of each year, at least ninety-five percent (95%) of the total taxable income accrued during the immediately preceding fiscal year.
VIII.
Disclaimer
This note is for general guidance only. Specific legal advice should be obtained in all cases.
ILN Corporate Group – Establishing a Business Entity Series
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