Previously we have dealt with the issue of the type of taxes paid by those who acquire property in Mexico, now we will see what happens when a foreigner wants to buy property in Mexico.
Article 27 of the Constitution allows, in most cases, foreigners to acquire real estate in Mexico, but in order for it to be valid, there are 2 options:
1.- The property should not be within what is known as the restricted area, that is, within 62 miles (100 km) of the borders or 31 miles (50 km) of the beaches.
2.- If the property is found in the restricted area, the foreigner cannot own the property directly as we will see later.
In the first case, an agreement has to be signed before the Ministry of Foreign Affairs, in which the outsiders declare that they are going to be considered as nationals with respect to the real estate they buy, and not to invoke the protection of their country regarding such purchase.
Now, within the restricted zone, as we said before, foreigners cannot acquire direct ownership of the properties, there they can only acquire rights as beneficiaries within a trust and to accomplish that they have to obtain a special permit in advance.
The purpose of the aforementioned trust agreement must be to allow the use and occupation of such assets, without giving the beneficiary full ownership of the property. The duration of these trusts is 50 years renewable once concluded.
To setup a real estate trust you must first hire the bank as the trustee and then appear before a Notary Public (the Notario Público in Mexico is an experienced lawyer who has been selected and appointed by the Mexican state after completing a rigorous application process) to formalize the trust.
It is also important to clarify that there is no extra cost for the foreigner who acquires a property outside the restricted area, since they only have to obtain the agreement mentioned above which is free.
In the case of the issuance of the permit to establish a trust in the restricted area, this does have a cost and it´s $15,530.00 (about $800 dollars).
We remind you that if you are interested in acquiring any of our properties, you can contact us through our WhatsApp, (which you can find on our page), an advisor will gladly assist you in English.
