Why buy in Mexico?
Mexico has always been a popular tourist destination for Americans and Canadians looking toLatin American Home in Cabo San Lucas enjoy warm climate, friendly people and a culture that is full of life. Being the closest Latin America neighbor to the United States, many feel a strong familiarity with the region.
Mexico offers home buyers affordable housing prices, stable government rule, warm weather, beautiful beaches as well as a wide range of social and recreational options for people of all ages. For those looking to purchase real estate in Mexico, an ever growing number of communities and developments have been built specifically for those looking to invest, relocate and retire in Latin America.
In short Mexico is a great place to live, play and soak up the best of what Latin America has to offer. Its proximity to the U.S. makes access and relocation much easier than in other Latin American countries. Mexico also offers a low cost of living which is especially great for retirement.
Property Ownership
Mexican Law provides for private ownership of land by non-Mexican citizens. The law is very specific about the way in which land rights should be transferred from seller to buyer as well as which types of land are not eligible for public ownership. Property may be purchased and owned outright for residential use by foreign nationals outside of the 100km restricted land border zone, or outside of the 50km coastal zone also known as the Restricted Zone.
Inside of the restricted border/coastal zones, foreign nationals may own land through a fidecomiso (a trust) which is set up through a bank and provides for ownership of the land and property in all but name.
The Mexican Constitution previously banned foreign nationals from owning property that was within the restricted border zones. The Constitution cannot be amended in this respect. As a result, the Government introduced a system of land trusts, so that foreign nationals could invest in property inside of the restricted zones.
The fideicomiso holds the deeds to the property. You have full rights to do whatever you like with your property: it can be developed (in accordance with local planning regulations), rented, leased, sold, or given away. The trust enables you to name a beneficiary upon your death. You do not need a Mexican Will in order for your inheritance wishes to be executed.
You do not have to be resident in Mexico to own property there, so there is no need to qualify for resident status under immigration laws in order to have a property investment in Mexico.
Mexican Law on property ownership is comprehensive and provides protection for the seller and the buyer in all property transactions, provided that the law is followed. To assist with this process, you should rely heavily on your Notary Public. As we will mention often with all transactions in foreign country, we highly recommend working with an experienced attorney.
Buying in the Restricted Zone
Land rights to all real estate in the restricted zone can only be legally vested and recorded one of two ways. The First is via a Mexican bank trust (fideicomiso) for all residentially zoned property. The second is through a Mexican corporation for all non-residential real estate. There is no variation in options concerning foreign acquisition in the restricted zone (100 km. along all borders, 50 km. along all coastlines, all of Baja California) of Mexico.
Non-Mexican citizens may be the sole and exclusive stockholders of a Mexican corporation that holds title to non-residential property in the restricted zone. In any type of real estate acquisition in Mexico, non-Mexican purchasers must always register their ownership interest with the Secretary of Foreign Affairs. Non-Mexican purchasers must also waive their rights to foreign government intervention in the event of a property dispute. This is known as the Calvo Clause, which is constitutionally mandated, and is contained in all bank trust agreements. It should be noted that Mexican banks, acting as trustee for a foreign buyer in a fideicomiso, make no warranty or guarantee of the title to the property in the trust nor do they provide any restitution in the event of a title defect. Foreign buyers should always be advised to consult an experienced US or Mexican attorney regarding real estate transactions.
We highly recommend that anyone interested in buying property in Mexico should consult with a qualified real estate attorney. For a list of recommended experts, please consult our real estate and legal expert section or contact us for assistance. We are the Latin American
