If you’ve been wondering, the answer is “YES!” You can own real estate in Mexico – once you find the ideal property, it’s simply a matter of understanding the way ownership is required be set up under Mexican law, and working with a team of seasoned professionals who can help get the job done efficiently and securely.
“Foreign buyers are permitted to acquire rights to own real estate in Mexico’s coastal and border zones by setting up a trust known as a Fideicomiso, which is a legal agreement very similar to many that are found today in the United States,” shares Richard Houghton of Investment Properties Mexico. “The trust is administered – with the help of an experienced attorney – by a qualified bank on behalf of the beneficiary, who is also the property owner.”
Legally, the trust permits the beneficiary to act as the owner of the real estate in question and complies with all Mexican property laws. Under the terms of a Fideicomiso, the beneficiary also has the right to full use, enjoyment and profit from all real estate named in the trust, including renting the property, borrowing against the property and selling the property.
“The property may be sold outright whenever the beneficiary of the trust desires,” shares Houghton. “All proceeds from the sale of real estate belong to the property owner, provided all taxes have been paid.”
In addition, Mexican law permits the original trust term – which is 50 years – to be renewed for additional 50-year increments upon written request from the property owner/beneficiary of the trust. In fact, the changing nature of Mexico’s real estate market has made purchasing property in the coastal and border areas much easier over the last couple of decades, beginning with when the federal government liberalized ownership provisions of all property in these constitutionally protected areas.
“In short, prospective buyers coming from outside of Mexico now enjoy legal freedom and ownership rights as mandated by Mexico’s new foreign investment law,” Houghton shares. "This includes buyers who are looking for tourist developments like condos, housing and time share projects, as well as those who are interested in rustic land, industrial options or urban properties.”
Although this is not intended to imply that buying property in Mexico is the same as buying real estate in places like the U.S. or other countries, it is also important to note that real estate transactions in Mexico are not completely different and not necessarily more complicated than those in other parts of the world.
“As with any major purchase, it’s important to exercise caution and common sense when buying real estate in Mexico,” Houghton advises. “We also help our clients work with a reputable, experienced Mexican attorney who can provide legal counsel, draw up the necessary paperwork and research all documentation that is involved in the real estate transaction."
The bottom line: If you’re looking to purchase real estate in one of Mexico’s most popular destinations, assume nothing and always choose to work with a reputable team of real estate professionals who can guide you through each and every step of the process.
Want to know more? We are happy to answer any questions you might have about buying real estate in Mexico – simply post your queries in the comments section below.