If you found this article, perhaps you already know that investing in the Mexican Caribbean is one of the smartest decisions to make your wealth grow. However, there are many questions around the process of acquiring a property in Mexico as a foreigner.
Regardless of the reasons why you want to acquire a property in this Caribbean paradise, we have prepared this article with the steps you need to take in order to make your investment come true and feel 100% sure of your decision.
Is it possible to acquire a property in Mexico being a foreigner?
Yes, it is possible and totally legal to acquire a property in Mexico even if you do not have mexican nationality. In fact, the mexican government offers facilities and incentives for foreigners who decide to make this country their home. This is reflected in the increase in the annual rate of Foreign Direct Investment (IED in Spanish). This figure alone in 2017 represented a total of $29.695 million dollars, according to the National Ministry of Economy.
The first thing to take in consideration is the location of the property: if it is in a restricted area or not, on that depends the procedures and documentation needed. Let’s go step by step.
What are restricted areas?
Restricted areas are special zones within 100 kilometers from the land borders and 50 kilometers in the case of beach shores. Mexico has an important extension of coastal kilometers and borders, “the area restricted to foreigners occupies almost half of the country,” said José Antonio Manzanero, president of the National College of Mexican Notaries.
So, this does not mean that you cannot acquire a property within these areas. The purchase can be made through a bank trust or a fiduciary institution. In these cases, the bank maintains the title of the land, but it is the buyer who keeps the rights to the land; it is he who can build, demolish or build whatever he needs.
This Trust is a necessary and mandatory requirement that has an approximate cost of 30 thousand pesos plus a variable fee. These expenses have to do with the payment of the rights for the permission granted by the Ministry of Foreign Affairs for it’s constitution, as well as the commission for opening and validity, which endures 50 years and includes a will where the beneficiaries of the trustee are assigned in case of death. The process to acquire the trust lasts 8 days and will also depend on whether the property you want to buy is ready or has a 90% work progress.
Some fraudulent real estate developers may try to deceive you by offering other alternatives, but it is important to emphasize that the Trust is the only certainty or legal way for a foreigner to acquire property that is located in a restricted area in Mexico, as stipulated by the Ministry of Foreign Affairs (SRE in Spanish).
Other steps to buy your property in Mexico
After clarifying the necessary procedures in the case of restricted areas, these are the steps you must follow to acquire your property:
- Request a permit to acquire real estate in Mexico on the General Direction of Legal Affairs, in Mexico City. If it is not possible for you to go in person, you can process this permission through a legal representative using a power of attorney.
- The following information about the applicant should be attached to this permit: name of the applicant, surname, nationality, immigration document number, immigration status, address and the same data of a person authorized to testify proof.
- It should also include the information of the property to be acquired: description and location, plans of the property, surface measurements, boundaries and boundaries of the land.
- The form of acquisition, percentage and conditions must be specified.
- All this documentation must be in original and include two copies, and must be signed by the applicant or the legal representative.
- Finally, the Mexican Government will ask you to confirm your legal identity through proper documentation indicating the legislation of origin, legalized or apostilled, translated by a certified translator expert.
Although these steps may seem somewhat confusing, you can always reach real estate experts, who have experience in this kind of procedures and in the acquisition of land in restricted areas. This will make your way easier and also speed up the process to acquire your property.
It is important not to take lightly this decision and that you feel 100% sure of the company you will entrust your assets. The best Mexican developers will accompany you step by step and solve all your doubts with total transparency, in order to give you the certainty that your decision is in the best hands.