Yes! You can purchase property in Mexico!
“Mexico is one of the easiest countries for Canadians and Americans to visit, purchase property, live and work.”
- To enter Mexico, one only needs a passport that will be valid for 6 months or more, and it takes 2-3 minutes or less to get a Tourist Visa.
- Canadians and Americans can purchase property on a Tourist Visa
- For those wanting to stay more than 180 days in a row, or to work, enjoy inexpensive health care and tax advantages – apply for an FM3 Visa, which takes an application and a few weeks processing time.
- The process to buy real estate in Mexico is similar to Canada / US with a few notable exceptions.
Just like Canada or the US, there is a land titles office that registers all land ownership, there is governing body that oversees every real estate transaction is done in accordance with law (the Notaria Publico, special type of lawyer) and there is a deed that is issued to you.
Foreigners are welcomed to own property in Mexico, however, there are special allowances made for properties located within 100 kilometers of any Mexican border, and within 50 kilometers of Mexico’s coast. These properties must be purchased using a bank trust called “fideicomiso” if purchased by anyone who is not a Mexican citizen. This may sound weird, but it is a tried and true process that over 1 million Canadians and Americans use for their property in Mexico. Your name is listed on the deed, and you are the only person who can sell your property: in essence, you enjoy the same rights of property ownership as Canada or the U.S., it’s just through a trust.
The fideicomiso is similar to bank real estate trusts set up in the Canada and the US, but a chartered bank in Mexico is designated as the trustee. The fideicomiso was created to encourage foreign investment in coastal and border areas of Mexico. It enables foreigners, as beneficiaries of the fideicomiso, to have unrestricted use of land located in the coastal and border areas.
In simple terms, a fideicomiso is a trust agreement created for the benefit of a foreign buyer, executed between a Mexican bank and the buyer of property in coastal and border areas. The bank, as trustee, holds the real estate on behalf of the foreign buyer who is the trust beneficiary. You, the buyer, retain all rights and privileges of ownership. You are entitled to use, enjoy, and sell the property at any time during the term of the fideicomiso. The foreign owner/ trust beneficiary has a contractual right under the fideisomiso with the Mexican bank to all benefits relating to the use or sale of the property, even though title is held in trust by the bank. Under Mexican Law, the bank, as trustee, has a fiduciary obligation to respect the rights of the foreign owner/trust beneficiary.
For more questions about the legal process or real estate in Mexico contact us or visit our Questions on Buying Real Estate in Mexico section.
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