From big cities to smaller resort beach towns, Mexico real estate is a proven way to enjoy secure ongoing income, whether you are nearing retirement, need to diversify your financial portfolio or are just looking for a great alternative investment that is not connected to typical stocks, bonds and mutual funds. Before you start to look at properties, check out this quick guide to help you understand the rules for buying real estate in Mexico, including what to expect and what the basic process is for owning Mexico real estate as a foreigner.
First of all, it’s important to understand that the Mexican Constitution of 1917 originally set strict rules about owning real estate in certain parts of Mexico, but a more recent amendment added in 1993 changed the law, and now foreigners are permitted to purchase real estate in formerly restricted zones along the coasts and near international borders, using a safe, easy bank trust system known as a fideicomiso. Under this system, foreigners can purchase and own property through the bank trust (fideicomiso), wherein the bank acts as trustee and the buyer serves as the beneficiary of the trust.
As beneficiary of the trust, a foreign owner enjoys all the natural rights of ownership that he or she would expect to have anywhere else in the world. Ownership rights in the fideicomiso include selling, leasing and mortgaging the property, as well as passing the trust on to heirs. Bank trusts in Mexico are good for 50-year blocks of time, but they can be renewed at any point for another 50 years, simply by submitting an application to renew the bank trust (fideicomiso).
Otherwise, the buying process for owning real estate in Mexico very is similar to searching for property in other countries. Foreign buyers should always work through a trusted Mexico real estate investment advisor to browse available properties in their desired price range and region, then to negotiate the sales price once the perfect property is decided upon. We always work closely with an English-speaking Mexican attorney throughout every step of the Mexico real estate buying process, to ensure that all necessary documents are filed, deeds have been transferred and permits obtained, etc.
Do you have questions about owning property in Mexico? Post them in the comments!