Are Foreigners Allowed to Purchase Real Estate in Mexico?
If you have been wondering whether or not you, as a foreigner, can buy property in Mexico then the quick and easy answer is yes. Foreigners can buy real estate in Mexico even if the land is in an area near the coast or foreign borders (areas considered federal zones).You may have heard that this is not the case, but that is merely a common misconception caused by the fact that foreigners who wish to purchase land or property within 31 miles of the coast and/or 62 miles of Mexico’s international borders must use a fideicomiso land trust in order to make their purchase legal. You will be pleased to read that the process of getting a fideicomiso land trust is quite straight forward and easy, and is a common service offered by many banks in Mexico.
Fideicomisos and Bank Trust Institutions
If non-Mexican citizens buy land or real estate in Mexico within the restricted federal zones, such as the popular beach destinations of Puerto Vallarta, Riviera Nayarit or Cabo San Lucas, a trust deed must be established with a Mexican national or institution (such as a bank). This institution then acts as a trustee on behalf of the foreigner wishing to purchase real estate in Mexico. While the bank acts as an intermediary, the benefactor (the foreign buyer) holds all the rights associated with ownership. In other words, the person who does the investing controls all the rights to the trust while the trustee oversees and manages the trust, and you enjoy the rights to occupy, rent, bequeath, and/or sell your real estate in Mexico.
Renewable Bank Trusts
Initially the term of a Fideicomiso bank trust when buying real estate in Mexico as a foreigner is fifty years, renewable for a further fifty year term in perpetuity. If you choose to sell your property to a Mexican national the trust can be terminated, but if you sell to another foreigner it can simply be transferred. Of course the foreigner purchasing your property can set up their own fideicomiso if they wish to.
Appointing Beneficiaries for real estate in Mexico
Upon the finalization of the trust you will have to appoint a beneficiary/beneficiaries to receive all the rights of the trust should you pass away before the end of the 50 year lifetime of the trust. This takes away the stress of your heirs needing to follow any probate proceedings with the Mexican courts should you pass away unexpectedly. This will save them time and money, but more importantly, it will be one less thing to worry about if the worst came to pass.
For more information about purchasing real estate in Mexico, contact us toll free:
Cabo San Lucas: 1 877 499 1901
Riviera Nayarit: 1 866 843 7005