1. Where are my tax notices sent?
Tax notices are not sent out in Mexico. Your Mexican accountant, or Mexican attorney can ask for them each year and advise you of the amount to remit. Fees for your Mexican accountant's services will run about $100 USD per year.

2. How much are annual real estate (property) taxes?
Annual real estate taxes in Mexico are quite remarkable. They average about $50 USD per $100,000 USD of property value per year.

3. When are real estate (property) taxes due, and how do I pay them?
Real estate (property) taxes are paid annually. Your corporate accountant will assist in your payment. In Mexico, you can go up to five years without paying your property taxes before you will get a fine. We do advise that you have your accountant pay them annually. Now, if you chose not to pay them for more than 5 years, the maximum amount the Mexican Government can ask for is 5 years of back taxes.

4. How do I know the property Title I am getting is really the land I saw?
You can compare the survey of the land to the legal description on the closing document. Your Mexican attorney will know if the legal descriptions compare and match up. We will also do this by comparing the survey to the corner markers on the ground. This way, we can determine that the property and the survey are the same.
Additionally, your Mexican attorney will match the legal description on the survey to the deed, and to all of the following: The legal description in the Notario's books, the legal description in the Land Registration Office, and the tax ID number.
This is the same process that is done in the US and Canada.

5. Can squatters take my ocean front property?
Yes, they can. But it is actually easier in some states in the U.S. to have a squatter steal your land, than it is in Mexico. In Mexico, in order to be granted title to land you do not own, but are living on, or 'squatting on', you must prove to the Mexican Government that you have been residing on the property for 5 years, in an obvious manner. This means that the squatter must make it known to everyone he/she resides there. They can do this by paying a tax bill, receiving mail, having utility services placed at the address of the property or something. The squatter cannot simply hide out on the land for 5 years, and then petition the government for the title.
If you have someone who is living on your land in this manner, most of the time you know it because they have to make it know to the public. But, if you do not notice this use of your property, then the squatter can, after 5 years, petition the government for your deed.
However, the government must make every attempt to notify you of this, either by mail, by phone or by placing an ad in the most circulated local newspaper at the time. If they get in touch with you, they will ask you if you are willing to consent to having your deed transferred to the squatter. Most people say no.
If they do not hear from you, then the government will permit the squatter to remain on your land for up to another 5 years. At which time, (now we are at 10 years of obvious use of your property) the squatter can petition again for the deed to your land, and again, the government must make every attempt to contact you. If they fail again, then the government will authorize the transfer of your land and deed to the squatter. This type of occurrence does not happen very often, and has never happened to any of our clients.

6. How are capital gains computed?
Capital gains are computed based on a stated value that is given by the government. The government does not ask for, nor does anyone tell them, what the transaction price is. The government does not depend on the revenue of real estate taxes nearly as much as other governments.
If you purchased $100,000 worth of property, the government will issue you a stated value for the purposes of taxes at about 10% of your transaction price. It ranges from 8% to 13% but if it is over 10%, you can object to it and ask them to do it again. So, the value of your lot, for the purposes of taxes is $10,000.
Now, let's say you go to sell it tomorrow, or 10 years from now and you sell it for $200,000. For the purposes of taxes, you would have a stated value of $20,000. The difference between the $10,000 and $20,000 is, again, for the purposes of taxes, your capital gain. The tax rate for that capital gain is 35% (just like income tax). But that is 35% of the differences of the stated values. In this example, it would be 35% of $10,000 ($20,000 - $10,000), or $3,500.
But your effective and actual capital gain is $100,000 and you paid $3,500 in taxes, which is really only 3.5% of your real capital gain.

7. Do I have to build within a certain time period?
No. Unlike many countries to the south, where they require you to build within a certain time period, in Mexico you may hold your land for generations if so desired. The reason for that type of requirement is to ensure that the market will stabilize and develop. The governments enacting such requirements are not certain the area will be viable and therefore they force the issue by law. This is not a positive indication when investing in real estate.

8. What are the building restrictions?
The building restrictions may vary with each geographical location throughout the Mexican Caribbean. However, the building restrictions for the Costa Maya are very simply and eco-oriented. You cannot build over three stories. You cannot build a home or structure that would cover more than 50% of your land. (This means that even if you had a 1/10 of an acre you could build a three story, home with 1000 square feet of space each level. This would be plenty of room and if not, you can simply buy more land.)
As for rental units; you cannot have more than 15 to 35 per hectare or 2.47 acres. For example, per acre (assuming 20 units per hectare) you can put eight rental units on the land.
The overall idea is to have the Costa Maya a 'low-impact' residential^ oriented development. This is exactly what the market is demanding and buying. This type of low impact means that if you bought a lot on an estate and some someone purchased 15 lots just like yours to the immediate south of yours, the impact or noise and traffic 'pollution' would be nothing more than if you had 15 homes built on the 15 lots to the south of you.

9. What do I do about water for my house?
Under the entire Yucatan Peninsula, including the Island of Cozumel, there are three levels of water tables. Each is running from west to east to the Caribbean. Well water can easily be obtained. If you were to dig, 66 feet inland from the Caribbean (which is where your lot starts) you would hit fresh water about 15 feet down. Now. this is not potable or drinkable water, but you can use it to bathe in, wash clothes, brush your teeth, and even swallow a gulp by accident.
Even in Cancun, Playa del Carmen, and Cozumel, you should not drink the fresh water unless you have a purification system such as reverse osmosis. RO membranes cost about $1800 and last about 9 years.
The master plan for the Costa Maya, which came from a company called Koll International out of Texas, will include purified water and sanitation services once the area populates and demands such.
Currently, should you decide to buy today, build tomorrow, and live on the Costa Maya the next day you would be using a septic system which is very common in many areas of the US and Canada. Again, the Costa Maya is a bit early for most to reside here but is the ideal time to secure your piece of Caribbean beach frontage at a reasonable price.

10. What is a cistern?
A cistern is a water tank that is used to store water from your well. Water from a cistern can be pumped into a pressure tank, and then into your faucets.

11. How much does it cost to build on the Mexican Caribbean?
Our customers have found that the average cost of building their homes is between 35 to 75 USD per square foot. At this cost, you can expect to have the following amenities: Concrete walls, footed into the bedrock under the sand, concrete ceilings, marble floors (Mexican marble, which is what you would see in any hotel in Mexico), marble kitchens and baths, and standard fixtures.
The reason for the price being so inexpensive is that NAFTA removes the 100% of the duty (taxes). Most countries to our south, such as, Belize, have 100% tariffs on all imported goods. Furthermore, the average labor cost here in Mexico is 82 cents per hour, not $25 per hour, as is the case in the US.

12. Is there telephone and Internet access on the Costa Maya?
TELMEX (Telefonica de Mexico) has services on the Costa Maya in Majahual.
Internet access is available on the Costa Maya, and a radio system, or wireless system, is in place and runs at speeds from 128 to 256k.
Both of the above aside, personal satellite communication in Mexico will be available for under $100 per month within 12 to 13 months. This will be dual band and high-speed Internet access, and you will also be able to make use of telephone services via the satellite system.

13. Is there electricity on the Costa Maya? How much does a generator cost, and which one should I buy?
Yes, electricity has 'hit' the Costa Maya. There is a substation outside the town of Majahual and electric poles are now running both north and south. If past performance is any indication of future results, we should see all of the properties along the coast electrified within 12 months.
Currently, should you decide to buy today, build tomorrow, and live on the Costa Maya the next day you would be using a generator or solar power. The approximate cost is less than $2000 USD, for a new quiet generator. Again, the Costa Maya is a bit early for most to reside here but is the ideal time to secure your piece of Caribbean beach frontage at a reasonable price.