CAN FOREIGNERS PURCHASE REAL ESTATE IN MEXICO?
Yes! You can obtain property rights in Mexico including coastal and border areas through a Fideicomiso which affords foreigners all of the rights of ownership they would find in Canada and the U.S…the right to use, enjoy, lease, improve, mortgage, sell, inherit and will the property.
WHAT IS A FIDEICOMISO AND HOW DOES IT WORK?
As a foreigner, you can acquire property in Mexico through a 50-year transferable Real Estate Bank Trust called a “Fideicomiso.” This trust is provided specifically for non-nationals, and it is the ONLY legal way for Foreigners to acquire residential property for personal use.
The Mexican Government via Mexico City issues an SRE permit to the Mexican bank or private federal leasing company that we opt to work with, and a survey, an appraisal, and No-Lien certificates for the property are reviewed by the Notario Publico. The property is then delivered to that Mexican bank which is then authorized to act as the trustee designating you as the beneficiary of the trust. The bank acts like an employee of the beneficiary (you) in all transactions involving the property. The beneficiary (you) retains the use and control of the property and makes all decisions concerning the property.
Some people have chosen to accept title through a Mexican Corporation, thereby holding title as Mexican entity. Technically if you are purchasing property as an investment (i.e. rental property, multiple properties, a partnership, or future development) you should hold title through a corporation. Many foreigners have been told that by holding title through a Mexican Corporation, you can save time and money vs. a fideicomiso. What is not disclosed is that a Mexican Corporation is legally obligated to file taxes monthly, with the filing done by a certified Mexican Accountant, among other obligations. Also, holding title through a corporation significantly changes your capital gains taxes should you decide to sell the property. Please consult an accountant or attorney to discuss the best options for your tax situation.