Requirements for Foreigners to Buy Property in Mexico

Buying property in Mexico as a foreigner is an attractive option due to its climate, culture, and investment opportunities. However, it is crucial to understand the legal requirements to complete this transaction safely and legally. Below are the steps and requirements necessary for a foreigner to buy a propertyin Mexico.

Restrictions in the Restricted Zone

The Mexican Constitution sets restrictions for foreign ownership in the so-called "restricted zone." This zone includes:

• Areas within 100 kilometers of international borders.
• Area within 50 kilometers of coastlines.

In these areas, foreigners cannot directly own properties but can do so through a bank trust (fideicomiso).

Bank Trust (Fideicomiso)

To acquire property in the restricted zone, a foreigner must use a fideicomiso. This is a contract where Mexican bank acts as a trustee, holding the property title on behalf of the foreigner. The foreigner is the beneficiary of the trust and has all rights to use, sell, and inherit the property. This steps to establish a fideicomiso are:

1. Select a Mexican Bank authorized to act as a trustee.
2. Negotiate and sign the trust contract with the bank.
3. Obtain a permit from the Ministry of Foreign Affairs (Secretaría de Relaciones Exteriores, SRE).
4. The trust can initially las for 50 years, renewable for another 50 years.

Direct Purchase Outside the Restricted Zone

Outside the restricted zone, foreigners can directly purchase properties without a fideicomiso. The general steps for direct purchase are:

1. Obtain a permit from the Ministry of Foreign Affairs (SRE): This permit is necessary for foreigners to acquire property in Mexico.
2. Hire a public notary: The notary will review all legal documents and ensure the transaction complies with the law.
3. Sign the purchase-sale agreement: This document outlines the terms of the transaction, including the price, property description, and payments conditions.
4. Register the property: The notary will register the property with the Public Registry of Property to ensure the title is valid and enforceable against third parties.

Required Documents

To complete the purchase, the following documents are required:

• Valid passport and visa of the foreign buyer.
• SRE permit.
• Signed purchase-sale agreement.
• Property documents, such as the title deed and a certificate of no encumbrances.
• Payment of taxes and notary fees.

Tax Considerations

It's important to consider the tax implications of buying property in Mexico. The associated taxes and fees include:

• • Acquisition Tax: Varies by state and the property's value.
  • Notary Fees: Includes notary fees, registration fees, and other legal costs.
  • Property Tax: Similar to property taxes in other countries, paid annually.

Buying property in Mexico as a foreigner can be straightforward if the appropriate legal procedures and requirements are followed. It is advisable to work with local professionals, such as notaries and lawyers, to ensure all stages of the transaction are handled correctly and the investment is protected.

This article provides an overview of the legal requirements for foreigners to buy property in Mexico. However, it is essential to consult legal experts for specific and up-to-date advice.

For more information and personalized assistance in acquiring your property in Puerto Vallarta and Guadalajara contact us. Our team of experts is here to guide you through every step of the process and ensure a succesful and hassle-free purchase experience.

For more information, you can visit the following links:

• Secretaría de Relaciones Exteriores
• Permit to Establish a Trust in the Restricted Zone