Who can buy real estate in Mexico? That answer is very easy, YOU can! It is very easy and possible for anyone, even if you are not a Mexican citizen to purchase real estate in Mexico. You can legally purchase real estate that is on the beach, even though these areas are Federal Zones. Many people believe that foreigners are not eligible to purchase real estate in Mexico, because of the constitutional limitations on foreigners buying property that is located within thirty one miles or 50 km near the coast or within sixty two miles or 100 km of international borders.
You can buy real estate in Mexico
Anyone can purchase real estate in Mexico, no matter how close to the borders or sea, but it will require a land trust known as a fideicomiso. A fideicomiso is a must when non-Mexicans purchase real estate in Mexico within the restricted zones and a options when purchasing elsewhere (some investors prefer to use a trust regardless). The great news is that any foreigner that would like to purchase real estate in Mexico can do so; all you have to do is follow the processes that have been set forth by the Mexican laws.
Fideicomisos and Bank Trust Institutions for buying real estate in Mexico
If you are not a citizen of Mexico and you would like to purchase property that is in the restricted zones, you will require a trust deed that you can get through one of the major banks in Mexico. The bank will represent you and act as the intermediary. As the foreign buyer, you will have all ownership rights. In basic terms, the foreign investor will be the beneficiary and the beneficiary will control the rights to the trust. The trustee is the bank in Mexico and is responsible for overseeing the trust along with managing the trust. You, as the foreign buyer can occupy the property, rent out the property, sell the property, transfer the property, and upon your death you can leave the property to someone in your will. In many ways it is just that same as Mexican’s owning real estate in Mexico, except that you have to pay a yearly fee, which is currently around $500 US
Renewable Bank Trusts
A Fideicomiso bank trust’s first term is generally fifty years for real estate in Mexico, but you can renew the term at the end of it and add an additional fifty years each time your renew etc. If you decide to sell the property later to a citizen of Mexico, then the trust can be terminated, but if you sell the property to another foreigner, then you will just have to transfer the trust rights to them or they can also get their own fideicomiso.
Appointing Beneficiaries for real estate in Mexico
Once the real estate trust has been finalized, then the foreign owner will need to appoint a replacement beneficiary or beneficiaries. The replacement beneficiary will then receive all the property rights within the trust, but if the beneficiary dies before the fifty year trust’s end, then any replacement beneficiary will own all rights. Having the appointing beneficiary will allow the beneficiary to have the trust and they won’t need to worry about following any probate litigations with the courts in Mexico, which is very important as it will save you a lot of money along with time.
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