Brokers

This is one of the most common concerns and questions that turn up.  And it makes perfect that your clients want to be sure about this before investing time and money into a Mexico real estate search.

To be 100% clear right from the beginning – yes, Americans and other non-Mexicans can own property in Mexico legally and safely.  However there are three different situations in which buyers will find themselves:

1. Direct Ownership – Inland Locations

Inland locations that are not near an international border, such as Morelia real estate or Lake Chapala real estate, allow for direct ownership where the property is titled in the name of the foreigner.  No extra steps are required.

2. Ownership by Bank Trust – Coastal and Border Areas

Within 30 miles of the coast or 60 miles of an international border (U.S. or Belize/Guatamala) non-Mexicans must own by means of a bank trust.  The bank holds the title of the property as the first beneficiary.  The non-Mexican owner is  listed as the second beneficiary and is given all the rights of direct ownership, including modification, construction, rental income, sale, profitable, etc.

This vehicle of ownership is spelled out in a contract and upheld by the law.  It is entirely safe and secure.  In fact, it even offers some advantages such as easier inheritance.

The reason for this arrangement (and for the confusion for buyers) is that due to instability at the time, Mexico’s 1917 constitution prohibits foreign ownership of property in these areas.  During the 70s, the government saw the benefit of allowing foreign investment into real estate in these high-demand tourist areas.  Instead of changing the constitution, it was easier to create a legal and safe vehicle for foreign ownership.

3. Mexican Corporation

A third situation is that in any part of Mexico (inland, coastal or border regions) a non-Mexican can establish a Mexican corporation.  The Mexican corporation can then buy the property.

So, yes, Americans and other expats can own property in Mexico – safely and legally.

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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.

The TOP Mexico Real Estate Network; “Mexico’s Leading Network of Specialists for Finding and Purchasing Mexican Properties Safely!”