Purchase Real Estate in Mexico – Villa La Estancia Real Estate

Destinations, FAQ, Fractional Vacation Ownership, Full Ownership, Real Estate, Residences

Is it possible to Purchase Real Estate Legally in Mexico?

You might have heard that there is no way for a foreign national to legally purchase real estate within Mexico. This is largely due to the constitutional limitations put upon the ownership of land and real estate by foreign nationals within 50 km (31 miles) of the coast and 100km (62 miles) of the international borders. Nonetheless, it is more than possible to purchase real estate legally in Mexico as a foreign national; you simply need to have the land held in trust through a fideicomiso. Thankfully, this process is very simple and straightforward since there are plenty of top Mexican banks willing to get involved these days.

Fideicomisos and Bank Trust Institutions

If you wish to purchase real estate in the restricted zones around Mexico (such as in Puerto Vallarta, Riviera Nayarit or Cabo) you will need to establish a fideicomiso, or trust deed, through a bank. The bank will then act as a trustee on your behalf; they will manage and oversee the trust in question, but you will retain all of the rights of ownership to the property in question. This means that you will be able to occupy, rent, transfer, sell, or bequeath in a will the property. The requirement to have a fideicomiso in place for property around the coasts and borders of Mexico does not, however, make it illegal for foreign nationals to own land or property in these area.

Renewable Bank Trusts

The initial life of a fideicomiso bank trust is fifty years, and at the end of this term the trust can be renewed for another fifty years, and so on in perpetuity. If you choose to sell your property at a later date to another foreign national the fideicomiso can be transferred, or cancelled so that they can set up their own, and if you sell to a Mexican national the fideicomiso can be terminated.

Appointing Beneficiaries

When you purchase land through a fideicomiso in Mexico you will be required to appoint substitute beneficiaries when the trust is finalized so that if the worst should happen and you pass on before the fifty year lifespan of the fideicomiso, your heirs will be given all ownership rights to the property. This means that your heirs will not need to follow any probate proceedings with the Mexican courts, thereby saving them time, money, and stress in already stressful times.

If you wish to know more about the legality of buying real estate as a foreign national in Mexico, contact us on 1 877 499 1901 or 1 866 843 7005.

by VLEAdminRE, August 20, 2017

Destinations, Real Estate, Residences

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

by VLEAdminRE, May 11, 2017