When it comes to buying property in Mexico, particularly in stunning coastal destinations like Bucerias, many foreigners have questions about the process and whether it’s even possible. The good news? Not only can foreigners own property in Mexico’s coastal areas, but the process is designed to ensure their rights and investments are protected. Let’s break it down.
What Is the Restricted Zone?
In Mexico, the “restricted zone” refers to areas within 50 kilometers (31 miles) of an ocean or 100 kilometers (62 miles) of a border. These zones include some of the most desirable real estate locations in the country, such as Puerto Vallarta. Mexican law prohibits direct ownership of land by foreigners in these zones. However, there’s a legal mechanism that allows foreigners to safely purchase property: the fideicomiso.
What Is a Fideicomiso?
A fideicomiso is a Mexican bank trust. Here’s how it work
- The Mexican bank holds the title to the property as the trustee.
- The foreign buyer is the beneficiary of the trust.
This arrangement gives the foreign buyer the same rights as direct property ownership. For practical purposes, owning property through a fideicomiso is no different from ownership elsewhere.
Rights of Fideicomiso Beneficiaries
Foreign buyers using a fideicomiso enjoy full property rights, including:
- Using and maintaining the property.
- Selling the property for a profit.
- Mortgaging or renting the property.
These rights are comparable to property ownership in the United States or Canada, ensuring foreign buyers can confidently invest in Mexican real estate.
Key Features of the Fideicomiso
Term Length: The fideicomiso is valid for 50 years and can be renewed indefinitely.
- Transferability: If you sell your property, the fideicomiso can be transferred to the new owner.
- Inheritance: Property owners must specify their beneficiaries in the trust, ensuring a seamless transfer of ownership to heirs.
Ready to Invest?
If you’re considering purchasing a property in Bucerias restricted zone, don’t let the legal nuances deter you. The fideicomiso system has been helping foreigners invest securely in Mexican real estate for decades.
Need more information? Feel free to reach out with your questions or to discuss your dream vacation home or investment opportunities. Let’s make your property ownership in paradise a reality!
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