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| Destinations >> Mexico >> Mexico Real Estate |
 Mexico real estate is one of the most popular rmarkets for North American Baby Boomers and Seniors. Mexico Real Estate provides excellent investment opportunities, good climate, strong culture, amazing adventure opportunities all at a much lower cost of living. That lower cost of living extends to food, utilities, medical fees, etc.
Mexico offers Boomers a wide variety of real estate, living options and home styles. Baby Boomers will have the opportunity to choose from ocean front condo living in Cancun, Puerto Vallarta, Manzanillo, La Paz to mountain living in central Mexico. Boomers can choose to live in the quiet countryside or in the middle of the action of a major city. Regardless of your buying or lifestyle preference, you can find it in Mexico usually at a much lower cost than anywhere in North America. To learn more about Real Estate Developments in Mexico, please visit the page for a list of available properties by city.
Communities Built with Boomers in Mind
In recent years, developers throughout Mexico have designed their homes and communities with an eye toward the emerging Boomer market in the United States and Canada. What this means for most Boomers is that regardless of your unique retirement or investment requirements, there is a likely an ideal home or condo project in Mexico that meets your needs.
We highly encourage anyone who is interested in Mexico Real Estate to take part in Mexico Real Estate Expos, Mexico Real Estate Seminars, Mexico Real Estate conferences, Mexico Long Stay Programs, Mexico Extended Stay Programs, Mexico Discovery Weekends, Mexico Fly and buy programs, etc. Mexico Discovery Weekends or Fly and Buy programs are a great way to see a home or condo project first hand. The events are typically offered at a discounted rate which includes food, fun and hotel. In addition to being a fun way to get to Mexico, a Discovery Weekend is a great way to learn about the real estate process in Mexico as well as the local culture of your chosen area. Boomers Abroad attends several of these events each year and we encourage you to visit the EVENTS section.. Mexico Extended Stay or Mexico Long Stay Programs
Many Boomers have discovered that the best way to truly learn about a potential retirement destination before buying is through long term rentals or extended stay opportunities. Long term rentals opportunities are available throughout Mexico. By renting before you buy, you are able to live in the community and experience your potential home without making a financial commitment.
A typical long term rental situation will allow you to rent a condo for pre-determined period of time. Fees generally vary depending on length of stay in a given area.
Property Ownership in Mexico Mexican Law allows for private ownership of land by non-Mexican citizens. The law is very specific about the way in which land rights should be transferred from seller to buyer as well as which types of land are not eligible for public ownership. Property may be purchased and owned outright for residential use by foreign nationals outside of the 100km restricted land border zone, or outside of the 50km coastal zone also known as the Restricted Zone. Inside of the restricted border/coastal zones, foreign nationals may own land through a fidecomiso (a trust) which is set up through a bank and provides for ownership of the land and property in all but name. The Mexican Constitution hasd previously banned foreign nationals from owning property that was within the restricted border zones. The Constitution cannot be amended in this respect. As a result, the Government introduced a system of land trusts, so that foreign nationals could invest in property inside of the restricted zones. The fideicomiso holds the deeds to the property. With the trust, you have full rights to do whatever you like with your property: it can be developed (in accordance with local planning regulations), rented, leased, sold, or given away. The trust enables you to name a beneficiary upon your death. You do not need a Mexican Will in order for your inheritance wishes to be executed.
We want to be very clear about a common misunderstanding:
You do not have to be resident in Mexico to own property in Mexico, there is no need to qualify for resident status under immigration laws prior to making a property investment in Mexico.
Mexican Law on property ownership is comprehensive and provides protection for the seller and the buyer in all property transactions, provided that the law is followed. To assist with this process, you should rely heavily on your Notary Public or Notorio. It is good common sense with all transactions in foreign country, we highly recommend working with an experienced attorney. For a list of qualified experts in Mexico real estate and law, please visit our Services Directory.
Buying a Mexico Retirement Home in the Restricted Zone
According to Mexico real estate law, land rights to all real estate in the restricted zone can only be legally vested and recorded one of two ways. The First is via a Mexican bank trust (fideicomiso) for all residentially zoned property. The second is through a Mexican corporation for all non-residential real estate. There is no variation in options concerning foreign acquisition in the restricted zone (100 km. along all borders, 50 km. along all coastlines, all of Baja California) of Mexico. Non-Mexican citizens may be the sole and exclusive stockholders of a Mexican corporation that holds title to non-residential property in the restricted zone. In any type of real estate acquisition in Mexico, non-Mexican purchasers must always register their ownership interest with the Secretary of Foreign Affairs. Foreigners Can Own Property In Mexico! (FAQ)
Can Foreigners own property on the beach or near the beach in Mexico? Yes. Recent changes to Mexican laws now permit foreign ownership of Mexican Real Estate. There are actually several ways a foreigner can legally purchase property and the best way for you will depend on your investment interest.
Can I get U.S. Title Insurance for Mexican property? Yes. There are now at least two U.S. title companies that will insure your investment in Mexico.
Is financing available? Yes. For more information on financing go to Financing in Mexico Section.
What is a trustee? In México, there is a Bank, which is authorized to open fiduciary accounts and conduct trust operations. The Trustee holds legal title to the real estate property during the term of the Mexican trust contract, and is also empowered with rights and powers necessary to achieve the objectives to the contractual agreement creating the Trust.
What exactly is a Mexico Bank Trust? The Fideicomiso or Mexican Bank Trust is a mechanism that enables foreign persons or companies to purchase property in Mexico. The trust mechanism was created to allow foreign investors to participate in Mexico's rapidly expanding sectors, while exercising complete and legal control over their investments while complying with Mexico's investment laws.
The trust is a property interest held by a Mexican bank. The sole purpose of the bank is to manage the property for the benefit of the owner of the trust. Real estate investment trusts enable foreign entities to invest in Mexico's coastal and border areas which were once restricted from foreign investment of any kind.
Only Mexican banking institutions authorized and regulated under Mexican laws can serve as trustees. The beneficiary of the trust, the foreigner, retains the use and control of the property held in trust and makes the investment decisions with respect to the property. This can include the decision to transfer such property interest to another foreigner realizing all of the economic benefits that accompany equity ownership in Mexico's attractive coastal properties.
Trusts are established for initial 50 year periods and can be renewed indefinitely for additional 50 year periods. The beneficiary may transfer or assign his beneficial interest to any person and keep the profits from the sale of the property subject to applicable tax laws and expenses for the sale. Property held under a trust can be passed on to future generations and the person to which the bequest is made is not burdened with an inheritance tax.
Fideicomisos are an easy and safe way for you to own property in Mexico. They are government sanctioned and offer strong protection. Potential investors are encouraged to contact us for assistance in setting up your Mexican bank trust.
What requirements are necessary? You or the seller must provide to the bank the following information:
A) A copy of the real estate title or deed indicating the exact surface area and boundaries. B) A copy of a draft of the property. C) The name (s) of the beneficiary (ies), nationality, address and phone number. D) The agreed purchase price.
Upon receiving the information and documents, the bank shall proceed to apply at the Mexican foreign affairs ministry, for the Trust Permit; once obtained at the Bank, we shall proceed to execute and legalize the Mexican Trust Contract before a Mexican notary public. Notaries in México have far greater legal competence than those in the United States. The Mexican notary public is an attorney at law, who is authorized by the Goverment to give final formality to the title transfer process in his protocol Book. The resulting document taken from his protocol book is registered at the public registry of the properties, and it will give evidence of the title in the name of the buyer.
What rights and obligations does the beneficiary assume upon the celebration of the Mexican trust contract? As the Trust Beneficiary, you will have the use and possession of the property, that is, you may live on the land, undertake any alterations and improvements. You also have the capacity to instruct the Trustee on mortgaging the real estate, renting it, selling, transferring it in to your beneficial interest to another person or corporation.
If you sell the property to another foreigner, you may assign your beneficial interest to the new purchaser. This assignment of rights must be formalized before a Mexican notary public, prior to the payment of the federal and local taxes and fees that arise from the transfer of beneficial rights.
You will have the obligation to pay the duties on land, i.e.: Annual property tax, condominium, maintenance fees, water, electricity, annual Trustee fee, ETC.
What fees will the trustee charge for this type of Mexican trust contract? The fees which the Trust Division of Scotiabank Inverlat., charges for this type of Trust are:
A) As a Trustee acceptance charge, $500.00 USD, payable once upon the signing of the Mexican Trust Contract.
B)For the handling and servicing of the Trust, $500.00 USD a year, payable in advance. This fee will be increased by the Trustee each two years, according to the U.S.A. inflation rate. Every year, on the anniversary date of the Trust, the Bank shall mail to your address the bill of the annual fee for keeping the property in Trust. All the Trusty fees cause the value added tax (IVA) and are subject to change.
What other expenses must the beneficiary meet upon the celebration of the trust deed? You must pay out the fees, taxes and expenses that arise from the purchase as well as the formalization of the Trust deed before a Mexican notary public. Also, you will pay the cost of the permit that must be obtained from the Mexican foreign affairs ministry to acquire the property in Trust, and the recording of the Trust deed at the National Registry of Foreign Investments.
What happens if the beneficiary should die during the legal period of the Mexican trust contract? The Beneficiary has the right to appoint substitute Beneficiary (ies) who will receive all the rights and obligations that arise from the Mexican Trust contract, if the Beneficiary dies during the life of the Trust. With this designation of substitute Beneficiaries, your heirs will not need to follow any probate proceeding before the Méxican courts, that could take time and attorneys fees. They would only have to give notice to the bank of the deceased and show the death certificate and their identifications. Then, the bank will give instructions to a Mexican notary public as to the proper protocol of the documents and with the resulting deed register them as the new owners (Beneficiaries) of the Trust property.
What will happen at the expiration of the Mexican trust contract? On December 27, 1993 a presidential decree was issued establishing the new Foreign Investment Law. According to article 13 of this Law, the Mexican foreign affairs Ministry shall allow the renewal of the Trust over the "Restricted Zone" upon the expiration of their term.
Furthermore, the Mexican foreign affairs ministry may authorize a new Trust over real estate transferred from one Trust to another for a period up to 50 years when the Beneficiaries of the original and the new Trust are different.
If you have further questions please to not hesitate to contact us we will be happy to assist you.
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