Buying a House or Apartment in Mexico as a Foreigner

You are probably at the point where you are attracted to the idea of being able to buy a house or apartment in Mexico and you want to analyze the pros and cons of taking a step of this magnitude.

You may have heard from some expats that they had no problem buying their house or apartment in Mexico (with papers in hand). Some others had to use the "Fideicomiso" and it is also unclear whether you actually own the property that you paid for.

So the intention of this article is to provide basic clarity on what is a FIDEICOMISO in Mexico and why it has to be used.

Fideicomiso is the direct translation of Trust, however, for the purpose of clarifying some essential aspects I will keep the term untranslated, since although they are similar entities, their basis and foundation in legal terms contain differences, which are not the purpose of this article.

The first thing to be clear is:

If you are a Foreign Individual (with a Tourist Visa) you CAN buy a Residential Property (House or Apartment) in Mexico. It is only necessary to enter into an agreement with the Federal Government through the Secretaria de Relaciones Exteriores.

The Agreement (called the Calvo Clause) consists of agreeing to consider themselves as Mexicans and agreeing not to invoke the protection of their governments (diplomatic protection) under the penalty, in case of breach of the Agreement, of losing the assets or investments acquired.

With this agreement, you can buy houses or apartments in Mexico as long as they are not Ejidal Property (property of a social character different from private property) and those that are located in a restricted zone.

Restricted Zone

Restricted Zone is defined by 100 km inland from the Border Line and 50 km from the Coastal Line.

As we all know, this excludes many of the areas with the greatest demand and interest on behalf of those who wish to buy. Although today there are different positions and opinions to modify this limitation. Today, the only way to acquire Real Estate as a Foreign Individual is through a FIDEICOMISO.

The Trust is intended to limit direct ownership by foreigners. Therefore, a Financial Institution is involved as Trustee and a Life Period of 50 Years was established. In exchange, you get the following:

Benefits

• The Contracts entered into are perfectly regulated.
• The Assets are Unseizable.
• The Contract designates Substitute Beneficiaries.
• Your Data and that of the Property are Protected by the Trustee.
• All contracts are executed before a Notary Public.
• You dispose of the property in its entirety.
• It can be renewed.
• You may sell at any time during the Fideicomiso life.
• There is an Annual Fee for the Fideicomiso Life, which is fixed with the Trustee.

In practice

In Practical Terms You are the one who Inhabits, Lives, Disposes and Enjoys the Property, If in the End you wish to Sell it, you are the one who Gets the Benefit. And for the Time Frame, 50 Years is quite a Long Period of Time, not to say 100 Years. In such a Long Period of Time, the Benefit of Having Bought a House or Apartment in Mexico Will Have Returned in Countless Ways.

Another important thing to consider is that it is a common practice, and many foreigners today enjoy this benefit. For this, the recommendation is to have professional legal assistance in the process. In CaribeRegnum we have alliances with legal professionals and field experts to provide you with all the necessary assistance you may need.

Conclusion if you are about to buy a house or apartment in Mexico

To be able to enjoy all the benefits that you can have when buying a house or apartment in Mexico are much greater than what it means to set up a Fideicomiso.

In short, this article is intended for those who wish to acquire a residential property in Mexico as individuals.

Those who wish to Establish Businesses and Acquire Real Estate with a Commercial or Industrial Character is a different subject.

We hope we have provided clarity and if you have any questions or comments, we will be glad to hear from you.

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