Foreigners can own property in Mexico, but are required
by Mexican law to set up a fideicomiso—a trust between
a Mexican bank and the buyer. Establishment of the trust
is required because the Mexican Constitution prohibits
direct ownership of real estate by foreigners in the “restricted
zone” which consists of all land located within
100 kilometers (approximately 62 miles) of any Mexican
border and within 50 kilometers (approximately 31 miles)
of any Mexican coastal area.
This trust is set up after the buyer and seller agree
on the terms of the sale and execute a Promise of Trust
Agreement. The bank acts as the trustee on behalf of
the foreign buyer who is the beneficiary of the trust.
While the bank assumes all legal and administrative
responsibilities, the beneficiary has all rights of
ownership including the right to:
- use the property
- lease the property
- renovate the property
- sell the property
- transfer the property to
any heirs
The trust lasts for 50 years and may be renewed for
another 50 years in perpetuity.
Once the bank receives the authorization for the trust
from the Ministry of Foreign Affairs, it will arrange
to execute the trust agreement before a notario—a
notary public. The trust agreement is then registered
in the Public Registry of Commerce and Property.
While the sale of property is conducted in accordance
with all Mexican laws, it is suggested that buyers obtain
the counsel of a licensed Mexican attorney.
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