How to Purchase a Property in México?
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Foreigners are legally permited to own property in Mexico, If you own property outside of the restricted zone (about 31 Miles
from the coast line or 62 miles from the border) you are allowed to own the property fee simple. For all intents and
purposes, fee simple ownership of property grants you nearly the same bundle of rights you receive when you purchase property
in the U.S.A or Canada.
Mazatlán and many parts of Sinaloa are in the restricted Zone. To acquire property in the restricted zone you must engage a mexican Bank to execute and hold title to the property for you with an instrument known as a Fideicomiso. The bank has a Fiduciary obligation to the owner. The owner retains all the benefits of the ownership and has the legal right to lease the property, sell the property and will the property to their heirs. Additionally, you may own property as a Mexican Corporation. You will need to incorporate under the laws of Mexico and report your corporate earnings quartely through an accountant. It is a little more expensive to set up a corporation than its to establish a fideicomiso. |
However, if you intend to own more than two properties or intent to run a commercial enterprise
(Bed & Breakfast, guest house or hotel) you will most likely want to incorporate.
The Fideicomiso does offer some additional comfort to those foreigners that fear the Mexican Goverment could nationalize and claim all property not currently owned by Mexican nationals (a very irrational fear when you consider the repercussions). The major Mexican banks hold literally hundred of thousand of Fidicomisos and receive substantial annual income from them. These banks are major corporations, their stockholders are national, international and very diverse. For the goverment to take properties from the banks, denying them income and legally placing them in fiduciary default to hundreds of thousands of clients would cause an international incident. Literally, hundred of thousands of Americans, Canadians, Europeans, Asians, South Americans, and others own property in Mexico utilizing the fideicomiso and a Profesional Realtor member of AMPI . |
Owning in Mexico
Rules of the Game
By AMPI International
All to often, citizens of the United States, Canada and other countries assume that property purchases in Mexico are carried out automatically in a manner similar to their native countries. The first rule of any property purchase in Mexico is, NEVER ASSUME ANYTHING! Purchasing property in Mexico is not the same as in other parts of the world.
Would you purchase property in your hometown, which is not registered in the local public registry, or land title office? Would you hand a complete stranger, without an office or established business, a check for perhaps hundreds of thousands of dollars to pay for a property? The obvious answer to these questions is, OF COURSE NOT.
Then why do so many foreigners do this very thing when they purchase property in Mexico? Many do not take the time to investigate how Mexico's real estate transactions function and how the supporting legal system has responded to that industry's needs. It is essential that you have an idea of how this system works and what to expect when considering an investment in Mexico.
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