Typically as part of the closing process on your Puerto Vallarta home, the utilities will be changed over to your name. If not, ask the previous owner to sign a letter authorizing this action and then register the change with the corresponding utility. Your electric bill will come every second month, and your telephone and cable TV arrive monthly.
There is usually an option to “pre-pay” these bills if you will be away from your Puerto Vallarta home for an extended period. You should also open up a bank account here in Puerto Vallarta. In order to do this, you will probably need a copy of the deed you just signed (“escritura”), your photo ID and one of the bills we just talked about. My advice is to find a bank where you can check your account and pay bills on-line. An institution with some idea of customer service is recommended, so if you see the line headed out the door as you approach the bank, and only one teller on duty, this is not a good thing! Gas and water are often included in your monthly condominium maintenance fee, ask your building administrator. The maintenance fee is typically paid monthly for most Mexico real estate properties (in advance), some associations pay quarterly or offer discounts for advance payment. Your property taxes (“Predial”) need to be paid yearly at City Hall next to the main plaza downtown. You will need to provide your Property Tax ID number or “Cuenta Catastral”. Bring your bill from the previous year if you still have it, if not bring a copy of your escritura. Typically if you pay in January or February you receive a discount. You can also pay these online at: https://enlinea.puertovallarta.gob.mx/PredialEnLinea/Default.aspx
There is a checkbox in the top right hand corner where you can change the language to English. You also need to check with your building administrator to see if there is an insurance policy in place against major damages. You can also insure your contents. I recommend using a large well established company in the event you ever need to make a claim. Also, please note that many policies are written in pesos, so make sure you take out enough insurance! You will also need to pay your bank trust yearly. Typically this takes place on the anniversary of your closing with the first year paid in advance. Again, do not expect the bank to send you a bill; it is your responsibility to make the payment, so mark your calendar! Rental income is a great way to subsidize the above-mentioned payments. You may have been told that you can rent your condo here and receive the money in the U.S. (or Canada) and not pay taxes on it. WRONG!!! It is completely legal to rent a property located in Mexico, but the income generated by this rental is taxable in Mexico! The Mexican tax authority “Hacienda” is getting tougher each year and if you rent your property and do not declare taxes you are running the risk of having the tax authority put a lien on your property or worse. So get yourself registered and declare your rental income. Does all this sound like a lot of work and no fun? Of course it is! That’s why they invented Property Managers! My advice is to ask your local TOP Mexcio Realtor to recommend a good one and let them deal with all of the above and more. There are many competent bilingual experts in town with access to specialists in law, accounting, cleaning and maintenance.
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Thomas Lloyd, graduated from Purdue University Krannert School of Management with a degree in Management/Financial Option Investments. He has been living, investing, and working professionally in Mexico for over 15 years. Mexico Real Estate Degree & Professional Identificacion Number S.E.P. #5978657. He is the current president of TOPmexicorealestate
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