San Miguel de Allende


San Miguel de Allende

It seems that unfortunately investors are not well informed about Real Estate in San Miguel, because of the bad publicity and wrong information they get from some "agencies". San Miguel offers a great deal of different ranges of investment opportunities. IT'S NOT ONLY FOR THE WEALTHY PEOPLE . . BUT you will find that price range is similar to all tourist places all over Mexico.

According to our records, 90 % of the buyers that have invested with A B C REALTY are foreigners. That’s why the business transactions are in U.S. dollars (majority market). But, this does not mean that you are not able to pay in pesos accordingly to the exchange rate of the day.

Your investment is secure, because the properties increase their value a minimum of 20 % every year. Real  Estate  in  San  Miguel  is   a  Real Solid business!

As follows we give you an average cost per square meter of land in different areas in town :





You may find less expensive lots in different areas in town, but you should be sure about your needs, and think of the future (selling and getting the best deal).

Remember, that one of the most important aspects is:  LOCATION. . .  LOCATION. . .  LOCATION ! ! !

To build the average price is $ 1,200.00 US dls.  per square meter with a top quality in almost any location.

As follows we will give you an idea of home pricing in San Miguel :

* Condos,  from $ 200 to $ 300  thousand us dls.

* Small home  minimum $ 250 to $ 350  thousand us dls.

* Medium size home: $ 350 to $ 700  thousand us dls.

* "Special home in walking distance" $ 800 to $ 1,000,000.00 Million US Dollars.

* The "Dream Colonial home in town" from $ 1,000,000 Million US Dollars to $ 5,000.000 Million US Dollars  and more.

ALL   REAL  ESTATE TRANSACTIONS  in San Miguel de Allende ARE IN CASH ! because Loans are very expensive and Mexican Banks do not give them to foreigners.  But please ask one of our Brokers for a Loan from the States.

Since last year you are able to buy through a Loan from the States, unfortunately the interest are still high, 9.75% plus closing costs.

But, don’t be scared by the prices, COME AND VISIT US ! We will find the best deal in town for you.  If you are looking for a business place, we have great opportunities.

In our 30 years of experience in Real Estate, we’ve observed that owners never reduce more than 10 % of the price If you are lucky you will obtain a 5% discount.  Owners prefer to wait before selling at a lower price.  Anyway don’t be ashamed to make an offer.  The only risk you’ll take will be to get a "NO" as an answer.



Preferable with one that is recognized by " A M P I " the Mexican Association of Real Estate Professionals, A. C. ®    It is an Association similar to the " N A R ", National Association of Realtors in the U.S.A. ®, or the "CREA" Canadian Real Estate Association, in Canada ®.

This will give you the credibility and professionalism you expect from a Realtor, but most of all your investment will be secure.

" A B C REALTY "® is member of these Associations: " A M P I " MEXICAN ASSOCIATION OF REAL ESTATE PROFESSIONALS, A . C . ®   " N A R ", International Real Estate Section of NATIONAL ASSOCIATION OF REALTORS ® and also the prestigious " F I A B C I " INTERNATIONAL REAL ESTATE FEDERATION ® so be sure that you are dealing with professionals. TRUST US  ! ! !


A B C   R E A L T Y    IS   ALWAYS   WITH    YOU ! ! !

CONGRATULATIONS ! ! ! You have decided to buy a house in San Miguel de Allende, one of the most lovely cities in Mexico. Now, we’re sure that you will be thinking you have a whole world of paperwork and difficulties in front of you. DON’T WORRY !

A B C  REALTY will support you all the way through, the present transaction. As usual we will do our best, to help and smooth things for you. We will give you the information of what documentation you will be needing and guide you with the paperwork.

M E X I C A N  T R U S T  - -  -  F I D E I C O M I S O

If you are foreigner, purchasing property in the prohibited zone of  Mexico,  the property Title will  not be in your name, but in the name of a Mexican Bank as a TRUSTEE for your benefit .


Article 27 of the Mexican Constitution of 1917, prohibits direct ownership of real property by foreigners in the "prohibited zone", which is a streap of land 30 miles wide along its sea coast and 50 miles along the borders.

This is the reason for the Bank Trust, or Fideicomiso, which has been established under the guidelines of the Mexican government so foreigners may be protected in their property acquisitions.

H O W    A     B A N K   T R U S T    W O R K S .

Under the trust system the buyer essentially becomes the beneficiary of the trust and a Mexican bank holds legal Title. As beneficiary one has all the rights of full ownership, such as using the property for his own personal use, making any changes to the property, and "selling" it to another party.

A few additional rights for the foreigner under the trust system that do not exist in direct ownership are the ability to rent the property and to designate substitute beneficiaries which eliminates the need for wills or probate in the event of the demise of the beneficiary.

Another often overlooked benefit of a trust is that the Mexican bank holding the trust is a powerful, present owner acting on the beneficiary’s legal behalf at all times whether he or she is in the country or not.

Trust last for 50 years and can be renewed at the end of that time. If you buy property  in trust, then the bank of your choice will draft the initial document for a sizable fee. An yearly fee is also charged for the handling of the trust. If a property is already in trust then there is a more modest transfer fee and the buyer acquires the remaining years left to the trust .

Mexican Foreign Investment law permits direct ownership in the prohibited zone of NON-RESIDENTIAL property when the title is taken through a corporation that is established in Mexico, even when all of the shareholders in the corporation are foreigners. This is because the entity acquiring the title is Mexican not foreign, which does not conflict with the provisions of Article 27 of the Mexican Constitution.


N A P O L E O N I C      C O D E

Mexico’s legal system is based largely on the Napoleonic Code.  This means that if a case needs to be prosecuted in court, this will be done at the court house, with the judge and no by jury.  Also, Real Estate transactions are done quite different from your country.  But we will explain what you should do.

C L O S I N G -  A  -  S A L E

Most Real Estate transactions start, after a purchase offer has been accepted by the seller and when a purchase-sale agreement (promissory contract) is signed by both parties.  This agreement needs to be accompanied by at least 10% of the sale price accorded as a pre-payment, a deposit; it's a requirement by the selling party for closing the deal.

The balance will be paid when the official deed, (escritura publica) is signed at the office of a "NOTARIO PUBLICO".  After the signature on the deed, the property will be officially yours, as the legal and official owner.

P U B L I C  - N O T A R I E S

All Real Estate transactions need to be done through the office of a NOTARIO PUBLICO, A GOVERNMENT APPOINTED LAWYER who acts on behalf of the government to insure the proper transfer of all Real Estate.  All closing documents are drawn up by the NOTARIO, who performs as an "ESCROW AGENT"  for the parties involved.

NO ESCROW COMPANIES EXIST IN MEXICO ! ! ! then THE NOTARY will certify at the PUBLIC- PROPERTY- REGISTRY  that the property is free of debts, no-lien and mortgage, and receives a NON-LIEN- CERTIFICATE along with a tax statement from the TREASURY office in order to insure the proper transfer.

IN MEXICO FOR A DOCUMENT TO BE LEGAL, it must be duly registered by the NOTARY, such as powers of attorney, formation of corporations, official witnessing of all documents, etc. This includes wills.  MORE INFO

T I T L E    I N S U R A N C E :

As we declare before, all Real Estate transactions must to be through a NOTARY PUBLIC. 

However some people wants a Title Insurance, then if you want more Peace of Mind for around 1% of the cost of your purchase, there are a couple of companies in San Miguel de Allende: "FIRST AMERICAN TITLE" & "STEWART TITLE COMPANY."



T R A N S F E R   C O S T S

It’s common practice that the BUYER pays a transfer tax: 0.004368% of the sales price and all the closing expenses such as Appraisal, Certificate of no Liens, Deed Registration, other Certifications and the SELLER pays his capital gains tax and the agent’s commission.

N O T A R I O   P U B L I C O    C O S T S

The costs for the NOTARIO services, which sometimes are negotiable, depend on the notaries prestige & experience and what kind of transaction is taking place. Usually 2 % of the Sales Price. If you buy a large home this will be a little less.

Be careful to ask for specific closing costs first !   And don’t forget to ask for references from your friends, or your Real Estate Agency, A B C REALTY

Confirm that certificates of non-lien and mortgage, official appraisal, certificates that water, telephone and electric bills or municipal taxes are paid, the authorization of the foreign affairs ministry, register of your new deed at the public property registry, proof that the transfer tax is paid and /or any other fees & expenses are issued.

A B C  REALTY, will be glad to support you, with all this paperwork.

C A P I T A L   G A I N S  T A X 

IN MEXICO the concept of CAPITAL GAINS TAX DOES NOT EXIST as in the U. S. A. consequently, the gain from the sale of Real Estate is considered as NORMAL INCOME and you should pay 29% of the diference.

In order to determinate the gain, the following costs are deducted from the official sales price:

1.- The original purchase cost, adjusted for inflation and depreciation according to the official published indexes, based on the number of years the property was held.

2.- Modifications and improvements (but not maintenance) to the property.

3.- Commissions paid to Real Estate brokers by the seller.

4.- The total cost of expenses and fees paid to the Notario when you are a buyer.

IF YOU CAN PROVE : with water, electricity, telephone and ALL Real Estate tax bills IN YOUR NAME; that you have lived permanently in the property for the last 5 years , have " FM-2 " status, and the house is in your name and not in trust, NO CAPITAL GAINS TAX IS DUE.  If you only have an " FM-3 "  you will pay taxes, with the exception that in your FM3 declares your address as your primarily residence. 

But if you left the country and at your return you don’t have 183 days in Mexico, then you will be paying 25% of the full value stated at the new deed !

This law also applies to Mexican Citizens !

Anyway "YOU SHOULD CHECK IT WITH YOUR NOTARY" who is going to withhold this tax. MORE INFO

I M M I G R A T I O N     P O L I  C Y :

Foreigners can entry legally to México as: a) non immigrant, b) immigrant.

NON IMMIGRANT : is a foreign that enters to Mexico temporarily, with authorization of the Secretaria de Gobernacion as: 1) tourist, 2) tranmigrant, 3) visitor, 4) adviser, 5) political refugee, 6) refugee, 7) student, 8) distinguished visitor, 9) local visitor, 10) provisional visitor.

IMMIGRANT: is the foreign that entry legally to México with the purpose to stay in, until becomes an EMMIGRANT.

Tourists: A tourist visa " FM-T " is easily obtained from Travel Agencies and Airlines. It is valid for up to six months and does not grant work status.

Working permits: Foreigners wishing to work in Mexico must request this  status. Its generally granted to people with technical expertise not found in Mexico. The visa an " FM-3 " is granted for one year period and is renewable for up to five years.

Foreign members of the board of a Mexican corporation or businessmen entering Mexico to establish commercial contacts may obtain a business visa from a Mexican consul abroad.This visa is valid for one year renewable term, although each stay in Mexico is limited to 30 days.

Student: Foreigners wishing to study in Mexico must apply for an " FM-3 " visa. A letter from the school certifying admittance, as well as proof of a student's solvency, are required.


1 ) Rentista: This non-working visa is available only to individuals aged 51 or older, retirees or veterans. The application for rentista status must be accompanied by a letter from your bank, social security agency or financial institution, certifying that the applicant receives a monthly income that is 400 times Mexico's minimum daily wage, plus 200 times Mexico's minimum wage for each depending.

2 ) Investors: All foreigners, regardless of their migratory status, may now purchase financial instruments and REAL ESTATE without obtaining the permission from Gobernación. Investor visas, however, do exist.

3 ) Professionals: In exceptional cases, a professional visa may be granted to outstanding experts or specialized professors.

4 ) Administrators and Confidential Employees: for high-level company officials.

5 ) Scientific. to realize  scientific investigations,   prepare investigators or realize teaching jobs, when this activities are realized in interest in the national development previously acceptance of Secretaria de Gobernacion with no duplicity of charges and when the service that is dealed deserves the penetration to the country.

6 ) Technician.To realize investigation in the area of production to perform  technical functions or specialized that can't be done by residents in the country.

7 ) Family depends:  Foreigners economically supported by a spouse or second degree blood relative with proper immigration status are eligible for a non working visa. Foreigners married to Mexicans or with Mexican-born Children: Applications must be accompanied by marriage or birth certificates and evidence of sufficient financial resources for family maintenance. Foreigners may accept employment in México with Gobernacion's approval.

8 ) Performing Artist and Athletes are now also eligible for immigrant visas.


Foreigners who have resided in MEXICO as Immigrants for at least  5 years are eligible to become permanent residents " FM-2 " and can acquire most of the rights and obligations of a Mexican national. The change to permanent resident status is not automatic and is completely subject to the discretion of Gobernación.



    ball-anim.gif (1653 bytes)   ABC  REALTY  


San Miguel de Allende

We have  over  90  %  of  the  most  selected   properties  in  San  Miguel !

If  yours  is  not  listed  with  us . . .  Call   right  now !


FROM   THE  UNITED   STATES   &  CANADA :   011 52  +  415  +

PHONES :   San Miguel de Allende  152  5000  &   152  6000    FAX :    San Miguel de Allende  154 7799

OR   VISIT   US    ON  :        San Miguel de Allende  CUNA  DE  ALLENDE  11 - 1

San Miguel de Allende

Click  here  to  Bookmark  ABC  REALTY,  San  Miguel  de  Allende,  Web  Page !

San Miguel de Allende

Web  Master:   Salvador   Moreno,  Architect                © Copyright,   2008