In the interior of mexico foreigners can own property fee simple (in their own names). In the coastal areas of méxico, properties that are located within 50 kilometers (30 miles) of the coastline and/or or 100 kilometers from the border. Must be purchased through a mexican land trust or fideicomiso. México amended their constitution in 1994 allowing foreigners to purchase and own real estate on the restricted zone through a land trust (fideicomiso).
What is a Fideicomiso?
The federal investment law in mexico created the fideicomiso in 1973 (revised in 1994) to encourage foreign investment into mexico. The mexican government issues a permit to a mexican bank that you choose, allowing the bank to act as the purchaser for the property. The bank acts as the trustee for your trust, and you are the beneficiary of the trust. The beneficiary rights are very similar to living wills or estate trusts in the u.s. or canada. The bank trust is the preferred method of purchasing property for residential use.
The property is not part of the bank assets and cannot be liable for any lien or attachment for any bank obligations. A beneficiary has full rights to lease, rent, mortgage, and receive profits from the property and to pass the property on to heirs. Any legal transaction involving the property must be approved by the bank that holds the trust. These trusts are initially set up for a period of 50 years and can be renewed indefinitely.
How it works?
RESERVE A CONDO FOR 30 DAYS WITH A RESERVE DEPOSIT OF $5,000.00 USD / $10,000.00 USD.
REVIEW AND SIGN BUY-SELL AGREEMENT.
MOVE INTO YOUR NEW HOME.
SET UP OF BANK TRUST AND PREPARATION OF THE DEED FOR SIGNING
*RESERVE DEPOSITS ARE 100% REFUNDABLE.
Closing and title transfer.
IXTAPA – ZIHUATANEJO
2,000 USD + 5% OF THE PRICE OF THE PROPERTY.
Whats covered in closing costs?
DETERMINATION THAT THERE ARE NO OUTSTANDING LIENS ON THE PROPERTY.
PREPARATION OF THE DEED.
DEED FILING FEES.
CITY, STATE AND FEDERAL TAXES
SRE FORM – PERMISSION FOR A FOREIGNER TO OWN LAND IN MÉXICO.
SETUP OF THE FIDEICOMISO AND BANK FEES.
* PRICES GIVEN MAY VARY DEPENDING ON THE NOTARY AND/OR BANK TO USE.
Once everything has been verified as correct and all the closing paperwork is ready, you’ll be notified of a closing date and the final closing costs due. At closing, the final deeds will be signed, final payments settled, and the property title officially transferred to the bank trust.
The notary then issues a notarized copy of the closing deed. This is your first proof of ownership and can be used to put utilities in your own name.