Can Foreigners Really Own Property in Mexico?

Yes, Americans and other non-residents of Mexico may buy and obtain direct ownership of property in Mexico without any more restrictions imposed on them than those imposed on Mexicans. However, within the restricted zone the legal situation is a little bit more complicated. Although foreigners cannot own property outright within this area, the Mexican government – in order to encourage foreign real estate investment in Mexico homes for sale – created two ways of avoiding this difficulty. One is to form a Mexican corporation and the other to set up a real estate trust to hold title for the foreigner. Much as a trust is used to hold property for minors because they cannot enter into a contract, the latter is a bank act on behalf of the foreigner. In other words: a Mexican bank must be designated as the trustee and as such holds the title of the land itself while the property buyer holds the beneficial use. It is NOT considered an asset of the bank. Only the buyer has the right of unrestricted use of the property, to sell, rent or lease it. This form of bank trust is known as Fideicomiso and the trustee is called the Fiducario. To establish a Fideicomiso costs about $1200 and there is a yearly administration fee that, depending on the property’s value, is usually $250– $750.