Many people dream of purchasing real estate in Mexico and it is definitely a tempting and wonderful idea! It doesn’t matter if you want to retire on Playa del Carmen or in a Merida condo, the dream of trying something new is enticing. Make sure you do your research before you make any purchase like you would with any other investment. There are many questions you might have about Mexico real estate, including the risk of buying property in Mexico. We have some great news!
Mexico is a safe country to purchase property. Foreign investors can purchase and sell property easily by following the simple guidelines set out by the government for foreign investors. Mexican real estate is an easy investment with a lot of upside potential. In fact, one of the many available homes for sale in Mexico might become the best decision you ever made!
Are Foreigners Allowed to Buy Mexican Real Estate?
Yes! Foreigners can buy, rent, lease, sell and will their property to their heirs using fideicomisos or by creating a company.
Fideicomisos are a Mexican bank trust created by the Mexican government. A trust in Mexico functions in the same way as a trust in Canada or the United States. This arrangement allows you to hold the title of the property in your name at a Mexican financial institution. Your property can’t be sold or modified unless you are the beneficiary of the trust, just like it is in Canada and America. While the bank gives you the vessel to hold title, the title of the property belongs to you and is not considered an asset.
The trust system was created by the Mexican government to allow foreign property investors to be permitted to buy without the need to revise Mexico’s entire Constitution. This is because the country previously prohibited foreigners from purchasing property within the “Restricted Zone” which is an area located 50km from the coast or 100km from the border. These trusts are available on 50-year terms and can be transferred.
It is a Myth That You Can Lose Ownership of Your Property in Mexico; Don’t Believe It
Because of the previous restriction on foreign buyers being allowed to buy land and property within Mexico, the myth that Mexican property ownership can be lost is still popular. This notion dates back to a time when Mexican real estate laws were not liberalized. As previously mentioned, foreign buyers could not purchase land within the Restricted Zone in the past. These laws were altered almost 30 years ago and foreigners can now legally and safely buy Mexican property!
The authorities encourage foreigners to buy property in Mexico by allowing them to use trusts or establish Mexican companies. You can rest assured that the government and anyone else cannot take any of your profitable properties away if you follow the steps for foreign ownership!
Use a Credible Real Estate Agent to Help You Through the Mexican Real Estate Process
Mexico has different property laws and regulations than the United States. It’s a good idea for you to hire an experienced Mexican real estate firm that is familiar with Mexican law. This will ensure that you have the most up-to-date and accurate information.
One example of a time when you will need the help of a real estate company in Mexico is when you have to sign all the paperwork as the law in Mexico requires legal contracts to be written in Spanish. This means that no sale contract, regardless of how formal it may look, will be legally binding if it is written in English. It is important to remember that an exact translation of the contract is required if it is written in both Spanish and English.
A good real estate agent has a lot of knowledge, which is important when you are looking to buy any property especially in a foreign country like Mexico. Their knowledge and experience in helping clients buy a home in Mexico is unsurpassed.
Conclusion
Do some thorough research and contact a reputable real estate agent in Mexico to get the best advice and access to Mexico real estate professionals with the most experience. They will help you understand the process and teach you everything you need about purchasing property in Mexico!