CAN A NON-MEXICAN OWN LAND IN MEXICO? In the late 80´s, and with the advent of the North American Free Trade Agreement (NAFTA), the Mexican government recognized that it was crucial to make foreign investment in Mexico safer and easier for non-Mexicans. Because the Mexican Constitution prohibits non-Mexicans from purchasing or owning real estate within 30 miles of the Mexican coast, an innovative and secure method of holding title was created. This method allows non-Mexicans ownership through a Mexican Property Trust called a Fideicomiso. WHAT IS FIDEICOMISO? It´s a trust, much like an estate trust in the US which gives the purchaser all the rights of ownership. This is not a lease. This is a Trust establish solely for the ownership of land in Mexico. Basically, the Department of Foreign Affairs issues a permit to the Mexican bank of the purchaser´s choice, and the bank acts as the Trustee for the trust and the Purchaser is the Beneficiary of the trust. The Trust is not an asset of the bank; the bank simply acts as the Trustee to hold the Trust. WHAT ARE THE PURCHASER´S RIGHTS? The purchaser´s rights are the same as property ownership in the US or Canada, including the right to enjoy, sell, rent, improve the property, etc. Again, the Trust is NOT to be confused with a land lease. WHAT IS THE TERM OF THE TRUST? The Trust has a initial term of 50 years and is automatically renewed at the end of the term for an additional 50 years. At this time the Trust can be renewed for perpetuity, allowing for long term control of the property and allowing the Homeowner to pass on the property to future generations. CAN THE TRUST BE TRANSFERRED? Yes. The Trust can be transferred to another buyer or to another person via a Cesion de Derechos, (Succession of Rights). There are fees for each transfer, which are calculated by a Notary in Mexico. |