Buying real estate in Mexico for non citizens
Always seek an experienced lawyer's help and a reputable real estate advisor.
If you're a foreigner considering purchasing real estate in Mexico, you're in for a treat! Owning property in this beautiful country can be an enriching and exciting experience. However, there are a few things to keep in mind before you begin the process.
First, it's essential to know that foreign nationals are not restricted from owning property in Mexico. However, there are specific rules about the type and location of the property that can be held. In particular, foreign nationals are not allowed to own property within the "restricted zone," which is a strip of land extending 50 kilometers (about 31 miles) inland from the coastline and 100 kilometers (about 62 miles) from the border. This restriction is in place to protect Mexico's sovereignty and natural resources.
Don't worry; there are still ways to own property within the restricted zone! One option is to purchase the property through a fideicomiso, a trust set up between a foreign buyer and a Mexican bank. The bank holds the legal title to the property, but you get to use and enjoy it as if you were the owner. Fideicomisos can be used to buy both residential and commercial property within the restricted zone.
Another option for foreign nationals who want to own property within the restricted zone is to form a Mexican corporation. This allows you to hold the corporation, which in turn owns the property. Forming a corporation can be a more complex process, so it might be helpful to work with a lawyer or other professional to guide you through it.
Outside of the restricted zone, foreign nationals can own property in the same way as Mexican citizens. This can be done through a direct purchase or a leasehold arrangement.
Buying real estate in Mexico may be different from what you're used to, so it's a good idea to work with a reputable real estate agent or lawyer who knows the ins and outs of the process. Make sure you clearly understand the terms of the sale, including any financing arrangements and legal or tax considerations.
To sum up, foreign nationals are allowed to own property in Mexico. Still, there are some restrictions on the type and location of the property. There are options available for foreign nationals who want to own property within the restricted zone, such as purchasing property through a fideicomiso or forming a Mexican corporation. Outside of the restricted area, foreign nationals can own property in the same way as Mexican citizens. It's helpful to work with a trusted real estate agent or lawyer and to have a good understanding of the terms of the sale. Happy house hunting!