The purchaser pays two percent acquisition tax to receive the trust, upon that time, the purchaser eligible to receive an inflationary credit from the Mexican government for each year of ownership.

This credit is added to your cost basis when you decide to sell your property. The credit is based on consumer index adjustments (inflation) and can be quite significant.

In the past when inflation was higher, we have seen credits in excess of 15 percent per year applied to a cost basis when you acquired your property some years ago.

On a million-dollar property, this can be as much as $150,000 USD per year added to your cost basis, significantly reducing your capital gains tax should you decide to sell in the coming years.