Frequently Asked Questions
Are foreigners permitted to acquire property in Mexico?
Yes, any foreigner may acquire property in Mexico. However, if the property lies within the “restricted zone”, it must be purchased through a legal instrument called a “fideicomiso”, effectively having the same rights and responsibilities that a full ownership property gives.
What is the “restricted zona”?
Defined under the Mexican constitución, the “restricted zone” is a strip of 100 kilometres along the northen and southern borders and a strip of 50 kilometres along the coastlines. Foreigners can acquire beachfront property through a “fideicomiso”.
What is is a “fideicomiso”?
A bank trust acquired through a bank to obtain rights over a certain property. This represents a formal contract by which an owner of a real estate property transfers irrevocably the ownership rights to a Banking institution established in Mexico, that keeps the title to that property for the exclusive benefit of the Trust Beneficiary (“fideicomisario”). Bank Trusts that hold properties for the benefit of 50 years, with unlimited options, at the end of the term, to extend it for additional 50 years periods.
As a Trust Beneficiary, how much control control do I have over my property?
As a Trust Beneficiary, you will have a personal and exclusive right to use, occupy and possess the trust property. You may also instruct the Trustee on mortgaging the property, renting the Trustee on mortgaging the property, renting it, selling, transferring your beneficial interests to another person or corporation, or performing any such acts thet by law derive from property ownership. In addition, the Beneficiary may transfer or assign his/her beneficial interest to any person and may keep the profits from the sale of the property according to the instructions given to the Trustee, subject to applicable tax laws and expenses of sale. The bank is legally obligated to follow terms outlined in the trust documents that comply in allareas with the request of the foreign investor who is the Trust Beneficiary.
