Yucatan News: Shoes, Hat, Cookies
The End of Fideicomisos: Not Yet
This past week, a proposal was introduced to allow foreigners to purchase property in restricted areas without the need for a trust. Those who introduced the proposal point out that this would make it easier for foreign retirees and businesses to move to Yucatan. The take-away from this, at this point, is that this is a proposal to make a change in the Constitution of Mexico. At best, it will take a long time to get the proposal passed through Congress, although we were heartened by the news that both major parties seem to be in favor of this bill. This means, for the foreseeable future, the law still stands and a trust is still needed in the restricted zones. We did, however, find some quite interesting statistics in the reasoning put forth concerning the need to change this law. For example, according to the National Association of Real Estate, U.S. retirees are proportionately more active in the second home market, are the owners of 57% of vacation homes and receive 58% of all rental income, with Mexico as the premier destination for purchasing a second home. We also learned that foreign residents, who vacation or live in Mexico, generate approximately 9% of the national GDP and generate more than 9.5 million jobs. While it is good to know our place in the Mexican economy, we still must remember that fideicomisos have not ended and buyers should continue to have proper representation when purchasing property in any foreign country.
Wishing Kukis by Maru a Happy 24th Anniversary!
Congratulations to Maria Eugenia Medina Hollmann, known to her friends as Maru, who began baking cookies in her own kitchen. All she really wanted then was to pay for phone calls and airline tickets to Canada. Today, she owns the most popular cookie franchise in Yucatan. Visit Kukis by Maru: Baking You Happy for 24 Years! online and in Gran Plaza. We hope Kukis by Maru enjoys this anniversary and many many more!
The Hatters of Ticul
When we hear the name of Ticul, we automatically think of shoes and pottery. But there are hatters in Ticul too! These are some of the hatters who weave their hats in the caves, and they are having a rough go of it. Apparently, the hatters in Ticul are unable to get through all of the requirements necessary to obtain credit and capital. Fortunately, they have regular customers who purchase thousands of hats on a wholesale basis, but expansion is virtually impossible for them. Today, many of Ticul’s hatters are in their 70s and 80s and work only in the afternoons. The skill of making hats is one that is passed from generation to generation. It is difficult, they say, to entice young people into the profession when they know that expansion is all but impossible. However, they are determined to survive as they continue to produce the hats we know as huichol, veracruzano and jaranero, plus several varieties for women and children. Do look for the hatters of Ticul the next time you head south for shoes and pottery.
Profits From the Shoe Fair: What do They Mean?
Before we leave the topic of artisans in Ticul, it might help to understand the situation of the hatters if we view it in contrast to the situation of the shoe and pottery makers. This year’s Shoe Fair profit, above expenses, is expected to be in the neighborhood of $40,000 pesos. Those profits will be used for community service projects and to improve the quality of the next Footwear and Handicrafts Expo. This includes cleaning and maintenance of the areas in which the fair takes place, as well as an outreach program to additional producers. But the interesting thing is that these profits are also shown to lenders as evidence of quality and success, where they result in low interest loans for the producers. Over the past few years, we have watched as more than a few groups of producers have come into their own by using successful fairs as business vehicles. We hope we see this happen for the hatters of Ticul in the very near future.
Ticul: Children to Retake Chess Classes
Ticul, these days, seems to be almost as busy as Merida and the happening place is the local Municipal Library! This increase in activity is thanks, in large part, to the Telmex Digital Library resources. Every Spring, this area is traditionally in the news for its chess tournaments but, this year, the Spring Chess Tournament in Ticul has been put off until July so that it will coincide with the anniversary of the city. Not to waste a second that could be spent in playing chess, the Municipal Library of Ticul is repeating a series of free chess classes. The classes are from 5:30 PM to 7:00 PM and children must go to the library to register. For our readers who love chess, do keep an eye out for the torneo de ajedrez “Alejandro Preve Castro” in July. The southern cone of the state is where so many children are avid chess players. Many find themselves with only homemade boards and chess pieces, but they have never let that little inconvenience stop them. Please put their tournament on your calendar and try to make it to Ticul in July to support the young chess players Southern Yucatan.
Coming Soon: 450th Anniversary of Former Convent
There is not yet a formal list of activities for the 450th Anniversary celebration at Tizimin’s Tres Reyes (Three Kings) Convent, but there are historical projects already underway. It is thanks to Professor Luis Pérez Salazar’s 30-year quest to document the history of the former convent at the Church of Kings that we now know when the Spanish came (1563), who the first priests were, who was there when the Spanish arrived (the Maya), and just how wonderful this paradise was 450 years ago. Celebrations are expected to begin in May and unfold throughout the remainder of 2013. This is another opportunity to plan ahead and know that something special is always waiting for you in Yucatan.
Wind Farm Coming to Motul
A new 100-hectare wind farm in Kancabal, Motul, will produce 30 megawatts of electricity that will be sold to CFE. This is enough electricity to take care of the total consumption of five municipalities in the area: Motul, Cansahcab, Izamal, Tixkokob and Hoctún. The beginning studies for the development of this project have already begun and it looks as if the project, using Aldiner equipment, will be up and running within approximately 18 months. Wind farms are an issue that has come up many times in Yucatan but, so far, wind power has only been used to pump underground water to the surface for livestock. This project will be closely watched by everyone who is interested in cheaper, cleaner electricity production.
Seaweed to Biodiesel
As many of our readers already know, a project was recently launched in the Municipality of Valladolid for the purpose of using seaweed to produce biodiesel fuel. Now, Sammo Energy LTD, a British company, has taken the first steps toward making this plan a reality. The project is expected to make a significant impact on the economy of the municipality and is a win-win situation for all concerned. Details of this project will be released as the project moves forward, but what most want to know is all about the visible parts of the project, the parts of the project that affect beach towns and residents. Who will collect the seaweed? How will they collect it? These are new topics that have not been addressed in Yucatan in the past and everyone is excited about being here to see a project like this move forward.
Hunucma: The 2013 Mango Harvest
Early March saw mango producers very worried that worms would take their harvest this year. Fortunately, that turned out not to be the case. The harvest is rolling in and foreign buyers are lining up in Hunucma to purchase mangos from Yucatan. Its a buyer’s market this year, with prices a bit on the low side, but better to make profits up in quantity than to lose money by watching the crops not sell. A crate of mangos is selling for either $80 to $100 pesos, depending on variety. A bucket is $60 pesos and a bag is $10 pesos. For our new expats, everyone keeps a list of reasons they moved to Yucatan, even if they don’t write down their lists. We would be willing to wager that “little yellow mangos” is on every single one of those lists. Ride out to Hunucma, pick up a crate of mangos and read Yucatan Living’s How to Eat a Mango. And then feast on your mango treasures!
Get Away from the Heat: Two Cenotes Near the City
In San Antonio Mulix, Uman, Yucatan, you will find two cenotes , one of which is Xbatún (of soap opera fame). The maximum depth of the water is only four meters and both cenotes are very safe. The cool, clear water is perfect for snorkeling and the entire area clean and well maintained by Tumben Zazil Kin Zonot Ecotourism, a cooperative owned by the people who live in the area. The gates are open from 9:00 AM to 5:00 PM, with quite a reasonable admission price: Local visitors: $10 pesos, Domestic Tourists: $25 pesos, Foreign Tourists: $50 pesos. In addition, available rentals include cabins, camping equipment, and swimming equipment, plus a restaurant and guides. Services are amazing. Visitors are welcome to bring their own food and beverages (tables provided), and their own life jackets and snorkeling equipment. There are areas to change clothes and portable toilets near the cenotes. There are parking lot attendants to keep watch over visitors' rented bikes and vehicles. The two cenotes are withing six kilometers of each other and can be visited in the same day. For a fee, visitors can hire a guide to walk or bike in the bush. If you love camping (cabin or tent), and the beach is not for you, do head west of the city to enjoy this ecotourism experience.
Comments
Working Gringos 12 years ago
Gil, we are looking into some details, but we think that you are misrepresenting or are mistaken about a number of things in your comment. We do not know of any limit on how many fideicomisos one can participate in. The fideicomiso is a bank trust that is required for foreigners in some situations, but an option also for Mexicans. It does not require a monthly report, and the five-year law you are referring to has nothing to do with whether or not the property is in a fideicomiso. It refers to whether or not the sale will be taxed by Hacienda. Also, fideicomisos are NOT an option for foreigners on any property over a certain size. We cannot remember the exact size, but one hectare is too large.
Of course, we are all aware of LLC's, as those exist in other countries as well. Hacienda frowns on setting up a corporation JUST to buy a house, although there is no problem if you are setting one up to run an actual business. You sound like you have a small-contributor financial entity, which would fit the description of only filing annually and reporting if you make over a certain amount. This is actually not what that type of designation is set up for, but apparently your accountant feels it is an option for you. Apparently also, if you are living near Tizimin, you are not within the zone where you are required to have a fideicomiso.
If we find out any more, we'll add it here. But in the meantime, we think you should be aware that some of your understandings may not be accurate.
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Gil Romero 12 years ago
I would like to briefly comment on the piece regarding eliminating the fideicomiso for foreign ownership. #1) The laws became much stricter about 5 years ago with regard to when a fideicomiso is appropriate and what it can be used for. The trust became inappropriate for people planning to do business with their home (as in flipping it) as well like creating rentals, shops, cafes, or whatever other businesses enterprising foreign visitors often come up with. In fact, it became suspect for someone to have two or more fideicomisos because the obvious presumption for Hacienda was (still is?)that the earnings would go unreported and therefore untaxed.
Summary: fideicomisos are no longer convenient if you will have more than two. They will be inconvenient if you plan to sell a property in less than 5 years from purchase and also if you (as a foreigner) sell more than one in a 5 year period even if you have held both properties for the "required" (to avoid punitive capital gains taxes) 5 years. They are also not appropriate if you will plan to use them to make business such as rentals or store-fronts of any kind. One last point is that almost no one takes out a fideicomiso when buying a property of over 2000 sq. meters.
What I don´t get is why people don't talk about the other option, the Limited Liability Corporation (LLC). Among other benefits, this by-passes all of the recent road-blocks now attributed to the formerly more "relaxed" fideicomiso. One last point is that the fideicomiso will likely cost at least $5000 USD for EACH property bought with one. It will also cost a hefty monthly maintenance fee after the first year or two.
The LLC is a one-time charge, can be owned by a single share-holder, and can basically be managed by your accountant with your attorney in the wings. It does not have to be expensive although we got taken for $50,000 pesos in Merida for the same LLC which would have cost us just $12,000 pesos in Tizimin had we known our new attorney in Tizimin at the time. The good news is that our costs are just $100 pesos per month for the accountant, the price of a cup of coffee for the attorney we see every year or two. And the way ours is set up, because we own a ranch/farm, we do not report monthly but instead file a $600 peso "report" annually and don´t even think of filing detailed tax returns or paying taxes until (if ever?) we make over $1,400,000.00 pesos, on-the-books, in a single year.
Finally as Khaki so wisely pointed out above, all of this absolutely requires that you find and work with professionals who are above all honest and who really know the latest tweaks and changes in the law and... who treat each client´s individual circumstances with care and respect. Good luck!
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carlos carlos 12 years ago
Hello Americans, I am looking for feedback. I have a piece of hydraulic machine capable of building Houses. It makes what is called CEB (compressed earth block ) using a mix of earth, sand and a low % of cement or lime. Blocks are weather-resistant and offer a thermic solution in walls. The machine can produce 2500 pieces daily in 2 days, enough to build a house. Chetumal area is my target today, but IF I receive good feedback from people looking to build green houses, then I might change my plan. This is the manufacturer web page with the machine in action. http://www.aectceb.com/3000series_video.html I AM NOT selling the 45K machine. I have purchased the machine already and I am Looking for Green Builders and Joint Investors. Thanks CARLOS.............Keep enjoying the HOT Weather.
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Khaki Scott 12 years ago
Valerie,
Thank you so much for your offer to help others hook up with the hat makers. They are, evidently, a huge hit since that article. Another group (maybe some of the same ones?) now have a booth in Hunucma. Yucatan's hat makers have never gotten the recognition they deserve and I hope everyone goes to visit them.
Khaki
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Working Gringos 12 years ago
If you look on Bing maps, you can see that San Antonio Mulix is just past Cacao, which is an exit off the 261. If you are going south, turn right at Cacao and then just follow the signs. Half the fun of these trips is the adventure of getting there :-)
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Neil 12 years ago
Can someone please give directions to these cenotes? When I search for San Antonio Mulix on Google maps I get a pin about halfway between Uman and Muna on the 261, but on zooming in there's no detail on the map. Is that the correct location?
Thanks
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Moritz Gauss 12 years ago
Hello everyone!
Thanks for the informative description of the two cenotes. We have been there a couple of weeks ago and the place is surely worth a visit. Nevertheless I would like to inform any future visitor that the people in charge at the entrance sell "used" tickets to visitors - which means, that the present group managing the cenotes is fooling the community by oficially stating fewer daily visitors and less income then actually achieved. It is more then likely that the difference goes to these guys' own pockets! I suggest that visitors keep an eye on this fact and request "new" tickets (consecutive numbers) so that these people become aware that visitors will not accept making them accomplices of that kind of dumb betrayal!
I would also like to raise the readers's attention to a restaurant which lies a little hidden to the left BEFORE entering the gate to the cenotes. Its much cheaper and better then the one lying inside the premise and is run by an older couple who's son was a professional diver and main developer of the ecotourism in the area but died in an diving accident a couple of years ago! There is very clean but basic accommodation and bikes to be rent in this place, also.
Cheers Moritz
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Valerie Pickles 12 years ago
I read with interest the article about the Hat Makers of Ticul. Whilst the writer made it sound that it would be easy to locate their home based workshops, its not quite that easy. Most of the hat makers you will find actually live in Pustinich which is a commissario of Ticul. Not only do they make hats but also mats and table mats! It is incredible to watch the speed at which they make these items. The process is fascinating to watch! If anyone is interested in where to find them or would like to know more then you can get in touch with me at thepickledonion@gmail.com. How did I find this one particular family? I used to work for their cousin when I first came to Ticul before moving to Santa Elena to create my business there.
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