Owning Property in Mexico as a Foreigner
Thinking of buying real estate in Mexico? This guide breaks down everything Canadian and international investors need to know about property ownership laws, legal frameworks, and how to protect your investment through trusted structures like fideicomisos.
If you’re a foreigner looking to buy property in Mexico, especially in the coveted coastal and border areas, you might be surprised to learn that direct ownership isn’t always possible. But don’t worry—there’s a secure and legal way for you to own your dream property: a Bank Trust, or Fideicomiso.
A Bank Trust allows foreigners to acquire property within the restricted zone, which includes areas within 50 kilometers of the coastline or 100 kilometers of the borders. Through this trust, a Mexican bank holds the title to the property on your behalf, while you retain all ownership rights. This means you can sell, lease, or pass on the property as you see fit, just like any other property owner.
Full Ownership Rights
You have the same rights as a Mexican property owner, including the ability to sell, lease, transfer, or mortgage the property
Legal Security
The Bank Trust is a well-established legal mechanism in Mexico, ensuring your investment is secure and protected under Mexican law.
Renewable Terms
The trust is set up for 50 years and can be renewed indefinitely, allowing you and future generations to maintain control over the property.
Estate Planning
The trust makes it easier to pass the property on to heirs, simplifying the inheritance process and reducing potential legal complications.
Although the process might initially seem complex, it is entirely managed and supervised by a reputable banking entity. Real Estate Brokers Mex has partnered with a globally recognized bank with an international presence and a robust infrastructure, ensuring that the process unfolds smoothly, securely, and efficiently.
To proceed, only a few simple documents are required, including a valid passport, birth certificate, and proof of address. These straightforward requirements make the process accessible and convenient for buyers.
The initial setup costs typically range between $500 and $1,200 USD, while annual maintenance fees are generally between $500 and $700 USD. However, these fees are subject to variation as they are determined by the banking entity providing the service.
A Bank Trust not only transforms your dream of owning property in Mexico into reality but also offers unparalleled flexibility. It allows you to rent out your property for additional income or use it as a seasonal getaway to enjoy the vibrant beauty of Mexico. Whether your plan is to generate rental income for part of the year or to create unforgettable memories during your personal stays, Mexico provides an attractive combination of high returns and diverse options to perfectly match your lifestyle and investment goals.