Buying Property in Mexico As a Foreigner
- Admin
- Nov 13 2020
According to the Mexican constitution, the Restricted Zone includes property within 64 miles of any international border and within 32 miles of the coast. In these areas, “restricted” is simply referring to the rules governing real estate transactions that involve foreign buyers, in fact, changes in the constitution over the years have made it easier than ever for foreigners to buy real estate in Mexico and right now is a great time to buy! In these areas, “restricted” is simply referring to the Mexican federal government’s requirement for foreign buyers to set up a bank trust known as a fideicomiso in order to hold the title.
What is a Fideicomiso?
A fideicomiso is a type of bank trust that gives the beneficiary absolute control of the property. You can choose to enjoy the land, lease it, make improvements, mortgage the property, sell it, designate the property for inheritance or give it away. In other words, your property is held under a fiduciary that is managed by a bank in Mexico on your behalf, and you get to call all the shots. “The fideicomiso is a bank trust wherein the bank (trustee) holds the trust deed for the purchaser (beneficiary)”, writes Global Property Guide. “While the trustee is the legal owner of the real estate, the beneficiary retains all ownership rights and responsibilities and may sell, lease, mortgage and pass the property on to heirs”. Authorized under the Ministry of Foreign Affairs, the bank is also required to validate ownership as well as insurance, and to confirm that the property is free of any liens. The trust is initially granted for a 50-year period, but the owner can easily renew it, sell the property, or transfer it to an heir. One of the most important parts of buying real estate in Riviera Maya, is finding a trusted real estate investment advisor to help guide you through the entire process. When you are investing in property in a foreign country, it’s more important than ever to find a realtor you can trust. Let us help you to find the right property for you!