Investing in Mexico Safely: All You Need to Know About Fideicomisos

A common question asked of real estate agents is “Can foreigners purchase property in Mexico?” The simple answer is absolutely! Not only is it possible, but it is also quite popular, especially in tourist destinations like the Riviera Maya, Puerto Vallarta, Riviera Nayarit, and Baja California.
Restricted Zones, Individual Buyers, and the Bank Trust

In your research, you may have heard of “restricted zones” in Mexico. These zones are any property within 100 km from Mexico’s international borders and 50 km from the coasts. According to the Mexican constitution, no foreigner may acquire ownership of any land or water within these zones.

However, an amendment was made to the Constitution to allow foreigners to own this land through what is known as a Fideicomiso (or Bank Trust). Foreigners can acquire real estate through a bank trust which grants them the use of the property for 50 years and the trust is renewable every 50 years.
Consider Creating a Corporation to Purchase Multiple Properties

A foreigner can also acquire property by establishing a Mexican corporation. There are a variety of different corporations that can be established so it is necessary to seek professional advice from a lawyer to determine the best option for you and your interests.

A Mexican legal entity has the capacity to acquire real estate in the national territory just as a Mexican citizen would so there is no need to create a bank trust to act as the intermediary. However, Mexican legal entities of any kind have tax and legal obligations they must comply with, such as the provisional payment of taxes on a monthly basis and a definitive payment of taxes on a yearly basis.

Posted by MexLaw  in Legal Services, MexLaw, Real Estate

For more information :
Carine GEBELIN
+52 984 152 3828
www.playa-home.com