The question many foreigners ask is:
"Can I own property in Mexico?"
The answer is:
"Yes, you can!"
Americans and Canadians are familiar with purchasing property through the process of "transfer in fee simple". The process of purchasing property in Mexico is a little different. The Mexican Constitution prohibits foreigners from owning property within 100 kilometres of the borders and 50 kilometres from the ocean. These areas are known as the Restricted Zones. The entire Baja Peninsula is considered a "Restricted Zone".
In 1970, a Presidential Resolution to the Mexican Constitution allowed foreign ownership of property in the restricted zones by way of a bank trust or fideicomiso. Under the fideicomiso, a foreigner is able to purchase property in the restricted zones with the property held in trust by a Mexican bank. Under the bank trust agreement (fideicomiso), the foreign owner, as a beneficiary under the trust, is able to enjoy the same rights as a Mexican citizen owning property in Mexico - they are able to build, resell, rent, etc.
Originally the trust was set for a 30 year period . However, in November 1993, the government announced an amendment to the trust law extending the term of the trust to 50 years. After the initial 30 year term, owners would be able to apply for renewal of the trust for a 50 year term. New trusts granted will be for 50 years. If the property is already in a trust, the term would be the original 30 years. Then six months to a year before the expiry of the 30 year period, the owner would apply for a renewal to trust. Upon approval, the renewal period for the trust would be 50 years.
The property owner has the obligation to pay the annual trust fees to the bank holding the trust on their property. Normal fees run between approximately $350 and $500.00 each year depending upon the bank.
If you have any further questions regarding the acquisition of property in Mexico, please contact us.
Condo Photos
More Info
Foreign Ownership
in Mexico