Relocating to La Canacinta is easier than you'd think...

There are many good reasons to live in Ajijic... excellent climate, lower cost of living, ambiance, and lots more. If you make the decision to invest in a home at La Canacinta, you'll need to do a little homework on the following issues. (Although some of this may look confusing at first, it's actually very straightforward and easily accomplished, especially compared to the requirements and restrictions the American and Canadian governments inflict on foreigners wishing to immigrate to the US or Canada.)

Visas

To visit Mexico, you will need proof of citizenship (passport, certified copy of your birth certificate, voter's registration or a notarized affidavit of citizenship) to obtain your "FM-T" (tourist card/visa) from Mexican Immigration at the border. The maximum length of stay in Mexico with a tourist visa is 180 days.

To reside part time in Mexico, you need to obtain an "FM-3" visa. This allows you to enter and leave the country on a regular basis, and is issued based on a minimum monthly income which will need to be verified through your financial institution. Note that the monthly minimum income decreases substantially if you own property in Mexico. Annul renewal.

If you are visiting Mexico on business, you can obtain a business visa in advance from Mexican Consulates in major cities. Often called "working papers", this FM-3 does NOT allow employment by a Mexican company, but is issued primarily for the purpose of making business contacts, attending meetings, etc. Annual renewal.

If you are moving to Mexico to live full time, you will need investigate the exact immigration rules and regulations. If you want to become an "inmigrante" you'll need an "FM-2" visa. There are five types of inmigrante, all renewable annually:

Rentista, the most popular, is based on a minimum monthly income which will need to be verified through your financial institution.
Familiares is for family members if you are already an inmigrante.
Inversionistas can be obtained if you to invest a substantial amount in a Mexican business.
Cientifico, tecnico, profesional can be obtained if you have a profession that cannot be filled by a Mexican national. Note you'll have to prove that you hold all relevant degrees, certifications, etc.
Cargo de confianza is used when Mexican or multinational companies sponsor highly trained management personnel.

After 5 years as an "inmigrante", you may want to apply for "Inmigrado" status. This will give you most of the rights and privileges of a Mexican Citizen (the primary exception being the right to vote) without giving up your native citizenship, and allow you to work and remain in Mexico without further annual visa renewals.

Purchasing a home

Buying your home is relatively easy. There are two basic approaches - the "Trust" or the "Direct Acquisition":

The bank trust (fideicomiso) approach is mandatory if the property is within 50 kilometers of the border or in the Federal District. While this does not apply to Villas La Canacinta, the trust may be an advantageous approach in some circumstances. Generally, a trust is constituted with a Mexican credit institution, usually a bank, and the trust deed is granted before a public notary. You can appoint any beneficiary you want, and no probate is required. However, the bank must sign any legal document related to the property on trust, and they charge acceptance and annual fees.

The direct acquisition approach requires each purchaser (one married couple = two purchasers) to submit an "agreement of acquisition" to the foreign affairs people (Secretaria de Relaciones Exteriores). A confirmation is given within 8 business days and there is a small fee for each purchaser. Your beneficiaries are limited to your immediate family (ancestors, spouse, descendents) to the exclusion of everyone else. However, there are no further charges, and you can sell without getting signatures from the bank.

It may be wise to consult a tax specialist before making your decision as there may be other considerations based on your personal situation (e.g. whether to own your property personally or have it held by a company).

Business Opportunities

Mexico welcomes foreign investment and the Ajijic area offers many business opportunities. Foreigners may now own one hundred percent of a Mexican corporation. Bilingual legal, accounting and business consulting expertise is available locally.

Automobiles

If you are a visitor (you are not an immigrant) with an FM-T or FM-3 visa, you can drive your foreign car as long as your visa is valid. You are required to have a car permit and Mexican insurance, for which you will need proof of citizenship, a valid driver's license and a certificate of title or vehicle registration. You will also need a major credit card to obtain a bond for the car. (Note that many recommend joining the AAA and using their procedures to expedite this process.)

If you have an FM-2 (you are an immigrant) you cannot bring in your foreign car.

You can, of course, purchase a Mexican car and have it legally registered no matter what type of visa you have.