Investing in Mexico is one of the best options to grow your money.
- Mexico is the 11th largest economy in the world.
- On logistics, the proximity to the U.S. border on the north and with central and South America on the south is an unavoidable advantage for Mexico.
- Exceptionally highly skilled, bilingual, and cheap labor force with high stability.
- More than 44 Free Trade Agreements and counting.
- The commercial and friendly relationship it has with several countries, as well as its privileged location, make Mexico an ideal country for investment.
- 6th at the ranking of the countries more visited in the world (38 million visitors per year)
- Mexico has to offer to foreigners a good conversion dollar-peso.
- The taxes paid in Mexico are lower compared to the fees that countries such as Canada or the UK have.
- Outstanding investment from OEM’s on the last 10 years with a huge growth from Automobile, Aerospace, Electronics, Home Appliances, Steel and Food industries.
- Mexico is a young population, and this is a demographic boom for all Latin America.
Mexico and the United States share nearly 2,000 miles of borderland. The country itself is laced with over 80,000 miles of highway and dotted with 76 airports, along with a good number of ports at the Gulf of Mexico and the Pacific. Here’s something impressive: A truck bearing manufactured goods can drive from Mexico and deliver its cargo to any point in the continental U.S. within 24 hours, aided by proximity to the U.S.’s infrastructure system. This can help lower costs as oil prices continue to climb. It also makes for easier monitoring of the manufacturing process from across the border.
LOCATION, LOCATION, LOCATION… STRATEGIC LOCATION
Mexico shares a border of more than 3,000 km with the biggest economy in the world: The United States. In 1993, Mexico signed the North American Free Trade Agreement (NAFTA) with the U.S. and Canada. Since then, Mexico has increased its exports by fivefold and its imports have risen by more than 300 percent. The flows of foreign investment have also increased significantly.
• Mexico is the second to top destination for all U.S. exports.
• Mexico buys 1/8 of the goods and services exported by the U.S.
• 26 U.S. states depend on Mexico as a main destination for their exports.
• 18% of Mexican exports are destined for the U.S.
• 50% of Mexican imports come from the U.S.
• Trade volume between both countries surpasses a billion U.S. dollars every day.
HIGH SKILLED, BILINGUAL, AND CHEAP LABOR FORCE
Mexican workmen are highly qualified. They offer you a cheap labor force compared to others northern American countries like the U.S. or Canada. The offer in the construction sector is exceeding in Mexico. You can also benefit of Mexican labor force for you real estate investment projects development in the territory.
GOOD CONVERSION DOLLAR-PESO
North American benefit of a good conversion dollar peso investing in Mexico. For those native of the United States and Canada, acquiring a property may be even more viable and cheaper than doing it in their respective countries. Also with the possibility of acquiring a larger property.
According to the Mexican Federal Tax Code, companies are considered Mexican residents if their principal centre of administration or the effective place of management is located in Mexico.
Country Comparison For Corporate Taxation
|Mexico||Latin America & Caribbean||United States||Germany|
|Number of Payments of Taxes per Year||6.0||28.9||10.6||9.0|
|Time Taken for Administrative Formalities (Hours)||286.0||342.6||175.0||218.0|
|Total Share of Taxes (% of Profit)||52.0||46.3||44.0||48.9|
source : santandertrade.com
OVERALL ECONOMIC OUTLOOK
Mexico, with a population of approximately 119 million, is the second largest country in Latin America, and the third largest in population in the entire continent, just smaller than Brazil and the U.S. Of the trade partners within the United States, Mexico is on the top-four with Canada, China, and Japan. Mexico’s standing as a leader in the global manufacturing market has been long established, even amidst increased global competition. A big number of Fortune 500 companies and other multi-national companies have turned to Mexico in an attempt to cut manufacturing costs, while maintaining U.S. standards of quality and efficiency. In 2014 the foreign direct investment reached $22.6 billion, including the relevant sale transaction of Comex, the largest Mexican paint company, on $2.6 Bill to the US Company PPG Industries. In 2013 Mexico drew a record reaching $35.2 billion in foreign direct investment (FDI), nearly double the level seen in 2012. The record high seen in 2013 was mainly due to Belgian brewer AnheuserBusch InBev’s acquisition of Mexican beer giant Grupo Modelo, the “Corona” producers, which brought in about $13 billion.
Nearly 81 percent of Mexico’s exports—30 percent of its GDP—is comprised of manufactured goods. This type of exporting has risen significantly since Mexico entered into the North American Free Trade Agreement of 1994. The economic performance during the past 18 years has been remarkable with the free trade agreements with 44 countries, including the U.S., Canada, the European Union, and several Latin American countries to compete with the current global. Today, we compete around the world with highclass products through our free trade agreements — more than any country in the world — which, according to The Financial Times, is more than twice as many as China and four times more than Brazil.
Mexico is 6th at the ranking of the countries more visited in the world, is a country thriving with unique culture and history. As the country in Latin America with the highest amount of tourism, Mexico offers a variety of opportunities to explore its ancient historical landmarks or indulge in one of its many unique resorts right on the coast of the Gulf of Mexico or the Pacific Ocean. Rivera Maya where is located Cancun, Playa del Carmen and Tulum attract a lot of people every year, 70% of travelers who visit Mexico go to the Riviera Maya.
THE BEST PLACES TO INVEST IN MEXICO
Tulum real estate is getting worldwide attention as a safe, attractive investment opportunity. It was named as #1 destination on the rise for 2016 by TripAdvisor and recognized as one of the top beaches in the world.
Investopedia lists Tulum as one of the six best places in the world to buy a winter home.
Tulum is a small beach town about 90 minutes South of Cancun and just 45 minutes from Playa del Carmen. Tulum is reminiscent of the way Playa del Carmen was just 15 years ago; Playa was a small fishing village which has quickly grown into an International city. Imagine if you had bought property in Playa 15 years ago and the profit you would realize now.
Playa del Carmen
Playa del Carmen is no doubt the fastest growing city in Latin America. While the Riviera Maya is the fastest growing tourist location anywhere in the world. With those two reasons, it is easy to appreciate why investment opportunities in real estate in this zone are flourishing. Tourism in Playa Del Carmen is currently the fastest growing coastal towns in entire Mexico.
Over the years, Playa del Carmen has enjoyed tremendous growth visible in all areas; commercial, retail, residential, and service. New condos developments are typically sold before completion, as experienced investors seek to get into the market as fast as possible. As a result, most condos for sale in Playa Del Carmen have appreciated before their completion.
Also, Playa Del Carmen is famous for having a European style and rustic charm that draw many global visitors and buyers.
source : sior.com