As soon as you tell people you want to buy a home in Mexico, you will receive many opinions. They will say it is a difficult time, a risky investment. Or they will give you reasons without reliable facts from reliable sources. They will say that its imposible that foreigners can own property in Mexico.
In this article, we will provide some tips so that you can review and study the myths or opposing arguments about acquiring and investing in real estate in Mexico.
Yes, Foreigners Can Own Property in Mexico
Yes, foreigners can own property in Mexico. Even beachfront property in Mexico, and the best news is that it is quite a hassle-free process.
Unfortunately, some foreign people in the past have tried to acquire property in restricted areas by putting it under the name of a Mexican that lent them their name. However, this is not legal and is quite risky. You can lose the property and have legal problems.
Since they lost their money and time and returned to their countries empty-handed, they claim that foreigners can’t buy property in Mexico, which is a myth.
Clarifying the myth that you cannot acquire a property in Mexico
There is only one restriction: you cannot buy real estate 50 kilometers from the coasts or 100 kilometers from the borders straight title.
As a non-Mexican, you can buy a house in Mexico. Foreigners can own property in Mexico, in the restricted zone through two options: via a bank trust or through a Mexican corporation.
Buying with a Bank Trust.
In the case of a bank trust, you, as the buyer, can choose which Mexican financial institution you wish to do business with to establish your real estate trust.
There are many multinational banks such as Citibank, HSBC, Scotiabank, and other establishments you might not have heard about before.
The essential factor that a buyer must evaluate is the quality and efficient services such a financial institute can offer.
The opinion of your buyer’s representative, real estate lawyers and other ex-pat consumers share is vital to consider their experiences when choosing your bank trust provider.
Just because the financial institution is well known and international does not necessarily translate that they have efficient departments to manage the real estate trust services.
A bank trust costs approximately $400 USD to establish, and there is an annual service fee of the same amount.
Benefits of holding property with a bank trust
Many Mexicans have chosen to hold their properties in bank trust as well due to the benefits they can have. Foreigners can own property in Mexico, and have the same benefits.
These benefits include allowing the property owner to list out their secondary beneficiaries for efficient transfer of property rights in case of the death of the first beneficiaries. This works much like a will and testament, but specifically for the property being held.
This is great ease of mind for many people, especially non-Mexicans. They can rest assured knowing their international property rights will be passed directly to the party they had in mind.
Having the property in a bank trust is similar to the process in the USA and Canada. The property owner is the buyer, whether Mexican or from another country.
The Mexican financial institution has no rights to the asset. The non-Mexican owner can build, expand, and re-model as they please. The non-Mexican owner can lease, mortgage, sell, or do as he wishes with his property. Obviously, this is as long as such actions are legal according to municipal, state, and federal laws.
As is the case of any property owner, regardless if they are Mexican or non-Mexican. Finally, the non – Mexican owners can sell when they choose and at the price they choose. They only need to notify the financial institution that they are transferring the bank trust to another buyer. Or that they want to terminate the bank trust once the new owner receives legal possession.
Buying with a Mexican Corporation
The second option for purchasing a property in a restricted area is to buy through a Mexican corporation, which can be 100% owned by foreigners.
Using a Mexican corporation is often a choice when the buyer is planning to purchase multiple properties. They could also be purchasing the real estate for business purposes and not for personal use. Fiscally and economically, this could be the best option rather than a bank trust.
Also, if you are purchasing for a business venture, having an accountant, tax declarations, and business strategies are very important items that you should consider during your reviews.
Seek advice from real estate professionals and lawyers to evaluate this option and to see if this is the right match for you.
Have a Real Estate Agent and a Lawyer Represent You!
The advice of real estate professionals and a lawyer will support you to avoid headaches and loss of your capital and time, as they will guide you during the buying and selling process.
A lawyer and a good buyers representative will help you evaluate the different property options and most likely know the developers or the property’s track record.
Again, all of these factors are reviewed and discussed when you have a professional buyers representative and buyers lawyer holding your hand during the process, as is in any country.
Another point to consider is the construction and design of the home of your dreams. Your real estate sales rep will help you to find the place that best fits your goals.
In today’s marketplace and business atmosphere, it is more important than ever to be able to broaden your investment horizons. And also, evaluate developing international marketplaces, as they are a potential source of extra wealth for you and your family.
We insist that you approach real estate professionals such as the qualified staff of Top Mexico Real Estate. And also a real estate lawyer. They will help you evaluate and purchase your dream home and/or investment in a paradise such as Mexico. You can own property in Mexico. And remember…We make it happen!