How To Purchase Real Estate In Mexico
Have you ever wondered if foreigners can buy property in Mexico? Well, the answer is a resounding yes! Not only is it possible, but it’s also quite popular, especially in stunning tourist destinations like the Riviera Maya (Cancun, Tulum, etc.), Puerto Vallarta, Riviera Nayarit, and Baja California Sur (Los Cabos, Todos Santos, etc.).
Key Point #1: Restricted Zones
These zones cover properties within 100 km of Mexico’s international borders and 50 km from the coastlines are called “restricted zones”. In these zones, foreigners are not allowed to directly own land or water within these areas.
Key Point #2: Fideicomisos (Trusts)
But here’s the good news: an amendment to the Constitution changed the game. It introduced a fantastic option called a Fideicomiso, or Bank Trust, which allows foreigners to acquire properties in these restricted zones. Through a bank trust, you can become the proud owner of a property for 50 years, with the possibility of renewing the trust every 50 years.
Key Point #3: Incorporating a Mexican Corporation
Alternatively, there’s another route you can take. If you establish a Mexican corporation, you can also purchase property in Mexico. To make the right decision about the type of corporation that suits your needs and interests, it’s crucial to seek professional advice from a lawyer who specializes in this area.
Here’s something important to remember: a Mexican legal entity, like a corporation, has the same privileges as a Mexican citizen when it comes to buying real estate. That means you don’t need a bank trust as an intermediary. However, keep in mind that Mexican legal entities, regardless of their type, have certain legal and tax obligations to fulfill. This includes making monthly provisional tax payments and annual definitive tax payments.
A Mexican legal entity has the fantastic advantage of being able to acquire multiple properties without any restrictions on the maximum number. This makes it a smart and effective strategy for investing in Mexican real estate. Plus, the company can also deduct some expenses related to its operations, which is definitely a bonus.
If you’re considering purchasing a property in Mexico, we highly recommend reaching out to ROE Latam for assistance. We have extensive experience in helping foreigners acquire real estate in Mexico. With our guidance, we’ll walk you through the entire process, providing clear explanations and details about the time frame and costs involved. Don’t fall victim to scams or potential dangers; hire qualified professionals who can support you every step of the way.
Get in touch with ROE Latam at online@roelatam.com
We’ll be more than happy to assist you!
Also please consider sharing this post, and checking these other posts that you may find useful:
- Top 8 risks when buying Real Estate in Mexico
- What’s a Restricted Zone Trust (Fideicomiso de Zona Restringida)?
- Expert Advice: What You Need To Know When Buying Real Estate Outside Mexico’s Restricted Zone
- How to Legally Import a Canadian or American Car to Mexico
- The Ultimate Road Trip: Exploring the Enchanting Route from Tijuana to Los Cabos
- Unlocking the Benefits: How to Utilize American Health Insurance in Mexico
- How to get a Mexican driver’s license?
- Renting Property in Mexico: Guidelines and Expert Insights