Nearly two million Americans and Canadians have bought and still buy real estate in Mexico in increasing tendencies.
 The attraction to the warmer weather in the winter months, the allure of finding a property with excellent appreciation potential, or just having a dream home down in a foreign country have been some of the main reasons for this massive increase in demand in these types of assets.
But once the non-Mexicans begin researching how to buy real estate in Mexico, they soon become a little overwhelmed by some of the differences between buying in their home country versus buying in a foreign country. The steps here in Mexico are actually quite simple and straightforward. However, there are some new processes and documentation because of the 1917 Mexico constitutional article defining their restricted zone.
Below in this article, we will share a simple guide through the steps. We will also outline some of the documents you need as a first-time buyer of real estate in Mexico as a non-Mexican. After reading this guide, you will notice that although different from our regular real estate acquisitions, the process as a foreigner in Mexico is actually quite simple.
Documents and Processes to Buy Real Estate in Mexico
So what documents and processes are needed if I am going to buy real estate in Mexico? First, you need to define where you plan to invest within Mexico. What we mean here is if the property is within 50 kilometers (31 miles) of the Mexican beachfront or if the property is within 100 kilometers (62 miles) of a national border (USA border, Belize border, or Guatemala border) versus purchasing real estate in the interior of this country.
We will identify these regions along the borders and beachfront as the Restricted Zone defined in Article 27 of the Mexican constitution. Any property within this region will require establishing a bank trust by a non-Mexican as outlined by the regulations.
Buying within the Restricted Zone as a Non- Mexican Buyer
You need to purchase via a Bank Trust or Mexican Corporation with title
Documents required to sign an Offer to Purchase and/or Promissory Contract. When signing the purchase sales agreement before the Mexican notary public, they may require more documents.
– original and copy of a formal identification (valid passport)
– original and copy of proof of address from the buyer’s home country. (valid drivers license or utility bill such as electric, water, gas, telephone, bank from your home country)
– original and copy of the FMM Mexican tourist entry format (forma migratoria multiple)
Buying in the interior zone of Mexico as a Non- Mexican Buyer
Properties may be purchased and owned outright with title
Documents required to sign an Offer to Purchase and/or Promissory Contract. When signing the purchase sales agreement before the Mexican notary public, they may require more documents.
– original and copy of a formal identification (valid passport)
– original and copy of proof of address from the buyer’s home country. (valid drivers license or utility bill such as electric, water, gas, telephone, bank from your home country)
-original and copy of the FMM Mexican tourist entry format (forma migratoria multiple)
After determining the property’s location and whether it is in Mexico’s Restricted Zone or Mexico’s interior, you need to define if you plan to purchase it as an individual or a Mexican Corporation. As non-Mexicans, you are legally allowed to start up a Mexican corporation with at least two shareholders.
Only a very small amount of industries carry specific limitations and regulations on international shareholders. The majority of non-Mexicans who start up a Mexican corporation for real estate commercial purposes or enter into the real estate industry have had very few obstacles when choosing this option. Another tip good for you to note is that the two shareholders establishing the Mexican corporation can both be non-Mexicans.
Buying the Mexican property as an individual
– original and copy of a formal identification (valid passport)
– original and copy of proof of address from the buyer’s home country. (valid drivers license or utility bill such as electric, water, gas, telephone, bank from your home country)
– original and copy of the FMM Mexican tourist entry format (forma migratoria multiple)
Buying the Mexican property as a Mexican Corporation
– original and copy of the Mexican Corporation By-Laws
the bylaws should clearly outline who has the legal rights to authorize and execute real estate acquisitions and disposals
– proof of identification of the shareholder having the authority and power to sign on behalf of the Mexican corporation: Passport
The above-required documents for a Non-Mexican pertain only to the buyers. Sellers will be required to bring various additional documents involving the property they are selling. We will outline these items and checklists in a future blog.
As you can see by this simple guide, buying real estate in Mexico is a bit different from that in your home country but not extremely difficult to manage. If you are looking to invest in the San Miguel real estate market, the process is slightly different from buying along the beaches of the Puerto Vallarta real estate market.
The fundamental difference is the extra steps required when purchasing properties within 50 kilometers of the oceanfront or 100 kilometers of the Mexican borders, which will require the use of a Bank Trust. In another vlog or blog, I will share the simple steps needed to set up a bank trust and the benefits of holding onto a real estate asset within a bank trust.
First and most importantly, start your Mexican real estate purchasing process by choosing a Top Buyers representative to help you navigate this exciting investing process in the Mexican real estate market.
