Protecting Your Assets in Mexico with Professional Financial Services
Lack of transparency and a lack of understanding Mexican community association operations are the top reasons homeowners of residential communities or condominiums contact our professionals at Associa México. When foreigners invest in a condominium or residential community outside of their own country, the excitement of meeting a life goal and the rush of an added asset in a foreign country can divert from understanding the laws or fiscal responsibilities that come with that.
When comparing American and Canadian banking to banking in Mexico, people are always surprised by how complex the process is south of the border. Most owners are left with having to pay transfer fee after transfer fee on their assessments. A huge advantage in partnering with Associa México is our partnership with an American bank (included in Forbes 2022 America’s Best Banks). This partnership allows us to create an account under the Mexican Civil Association name, which provides residents with several payment options and no transfer fees.
Another complexity of operations in Mexico is the vital item called the factura, which is an official tax-deductible document. It is a legal receipt provided for goods and services that can be used for operational expenses or deductions. In the USA and Canada, you receive a general receipt that can be used as proof for a deduction. In Mexico, you receive the general receipt, but you must request the factura. This can take more time, as you will need to provide the association's address, legal corporation name (civil association), and tax identification number (known as R.F.C.). If your association fails to provide the factura, a 35% tax will be added over the total price of purchased goods or services, as it becomes a non-deductible item. This can highly impact your community association's budget if not done correctly and on time.
At our Associa México office, we have a complete accounting department. This includes Mexican accounting, USA standard accounting, facturación (deals specifically with processing facturas correctly and timely), billings and collections, and tax reporting. We provide all Associa México managed communities with a platform that gives boards 24/7 access to their community financial reports in real-time via smartphone, iPad, or computer. Reports can be downloaded as a PDF or Excel document, including income and expense details, spend and budget analytics, and delinquent details to deliver full transparency. And to top it off, our $6 million USD fidelity bond covers your association's assets, providing you with the industry’s highest level of protection for all your important financial assets.
Areas served: Los Cabos, La Paz, Rosarito, Loreto Bay, Puerto Peñasco and Puerto Vallarta. For more information on our Financial Services option, contact Melissa Eisenman, Business Development Manager of Associa México, at meisenman@associamexico.com or call +52 624 157 4799.