FAQ´S

Foreigners can own property in Mexico?

Yes!!! It’s perfectly legal for foreigners to buy and own in Mexico.

Are you interested in investing in property in Mexico, but are a little confused about how buying property in Mexico works?
Acquiring property in Mexico as a foreigner is through a Bank Trust / Fideicomiso.
This is necessary if you are not a Mexican citizen to purchase property in Mexico.
While the bank trust may sound complicated, rest assured that the process is not as complex or time consuming as you may think.

What is a Bank Trust / fideicomiso?

The Origin of the Bank Trust/Fideicomiso
Legal ownership of real estate in Mexico for foreigners stems from the Foreign Investment Law that was approved by President Luis Echeverría in 1971. It became law in 1973.
Since the Mexican Constitution was amended in 1971 it allows foreigners to purchase residential real estate through the establishment of the bank trust
This allows to purchase property within 50 km the coast or 100 km of a border.

A Bank Trust / Fideicomiso that allows a Canadian or U.S. person to purchase property in Mexico with all the rights of a Mexican citizen.
This is a safe, legal and extremely common vehicle for foreign ownership of real estate in Mexico.
As the beneficiary you have the full right to rent it, build it, live in it or pass it on to your heirs.
It can be owned by one or more individuals. This means that a married couple can be co-owners. The owners can also name an heir.
It has a duration of 50 years and is then renewable by the owner or his heirs. This means that the property does not expire as long as it is renewed.
The trust is easily transferable when an owner is willing to sell.
With a single trust, international owners can own several properties in Mexico.

Does the Bank Trust / Fideicomiso have a cost?

Trusts add some time and cost to the purchase process.

The initial cost ranges from $1,500 to $3,000 USD.
(Cost is determined by the trustee bank)
Fees cost about $500 to $700 USD per year.

how much are my closing costs?

Before buying real estate in Mexico, be sure to consider closing costs in your budget.
Real estate closing costs generally total between 4% and 6% of the value of the property purchased.
These costs are always the responsibility of the buyer.

The seller, on the other hand, will have to pay other real estate taxes and capital gains taxes.

Is the Bank Trust / Fideicomiso renewable?

The bank Trusts / Fideicomiso are elaborated through a “Notario” or notary public, and are active for a term of 50 years.

Only a notario can create a Bank Trust / Fideicomiso.
The bank trust is automatically renewed for another 50 year term when the original term ends on this time the Bank Trust / Fideicomiso is completely renewable.

Why the role of a Notary is important in the purchase of a property?

During the purchase of real estate in Mexico
The Notary Public is the highest authority appointed by the government in the management of the purchase and sale of a property.
A Notary Public will authenticate all legal documents. In their position, notaries attest to the documents, guaranteeing their absolute authenticity.They calculate the capital gains tax and ratify all real estate transactions.
They are also tasked with managing and safely securing original documents and records, and no real estate transaction can be legally processed in Mexico without being overseen by a notary public

What are my rights when buying a property in Mexico as a foreigner?

As beneficiary enjoys the same property rights as Mexican citizens. including the ability to remodel, lease, mortgage, pass to their heirs or sell the property at any time.
In addition to being the beneficiary for your property, you can also designate substitute beneficiaries for when you pass away.