After last year’s seemingly promising announcement of the law amendment regarding the fideicomiso (Mexican Bank Trust), some Americans and other foreign buyers remained in wait and see mode before commiting to purchasing real estate in Mexico, hoping that the expected law change would come soon enough.
While we have been waiting patiently on the fact that the change to Article 27 of the Mexican Constitution would be made, which if passed would have essentially done away with the need to acquire a Mexican bank trust to own property in the Restricted zones in Mexico, it seems that this hopeful idea has come to pass.
Unfortunately, the time allotted to have followed through with the amendment has expired, thus formally rejecting the bill only based on a technicality.
This all intercepted at a time where Mexican Politicians have been busy working on implementing new reforms in Mexico, which as a result put the amendment of the fideicomiso law somewhere on the back burner until time eventually ran out.
So for now, and the immediate future, Â the law still stands that any foreigner wishing to purchase property in the restricted zones of Mexico will need to go through the standing process of holding a Mexican Bank Trust.
The restricted zones which fall under the law are 100 kilometers or 62. 13 miles from any international border and 50 kilometers or 31.6 miles away from any coastline border in Mexico.
While we are a bit disappointed in this rejection but we feel that it should not have any negative affect on foreigners purchasing homes in Mexico. This is because the current process of holding a bank trust is still a very safe and convenient option for foreign home ownership in Mexico.
As we have mentioned before, even had the new law been passed, having a Mexican bank trust would have even remained a more appealing option for most people because you or your loved one would never have to go through probate, which can be very time consuming and expensive.
If you have any questions about the fideicomiso (Mexican Bank Trust) law talk to an experienced real estate agent in Mexico.
Thomas Lloyd graduated from Purdue University Krannert School of Management with a degree in Management/Financial Option Investments. He has been living, investing, and working professionally in Mexico for over 16 years. In the summer of 2009, he received the first federally applied Mexico Real Estate Degree and Mexico Professional Real Estate License S.E.P. #5978657. He is the president of Top Mexico Real Estate. Contact him at (512) 879-6546.
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