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Yes…
you can own property in Mexico
In 1994,
amendments to the Constitution permitted foreigners to purchase and own
real estate in Mexico located within the “restricted zone” which is all
land within 60 miles of a national border and within 30 miles of the
Mexican Coast. This Law permitted ownership through a land trust or
“Fideicomiso”.
A
“Fideicomiso” is a Mexican Trust. The way it works is the Mexican
Government issues a permit to a Mexican Bank of your choice, allowing the
bank to act as purchaser for the property. The bank acts as the “Trustee”
for the Trust and you are the “Beneficiary” of the Trust. The
“Beneficiary” rights are very similar to Living Wills or Estate Trusts in
the U.S.
The law
authorizes Mexican banking institutions to act as trustees. A trustee
takes instructions only from the beneficiary of the trust (the foreign
purchaser). The beneficiary has the right to use, occupy and possess the
property, including the right to build on it or otherwise improve it. The
beneficiary may also sell the rights and instruct the trustee to transfer
title to a qualified owner.
Many people
refer to the trust arrangement in Mexico as a lease agreement…this is not
true. The home or property that you buy will be put into a trust with you
named as the beneficiary of the trust, you are not a lessee. You have all
the rights that an owner of property in the U.S. or Canada has, including
the right to enjoy, sell, rent or improve the property.
The initial
term of the trust is 50 years and can be renewed for fifty year terms
indefinitely.
Contact
Marco Ehrenberg
for more information |
