The real estate market in Mexico is very attractive. Vacationing and retiring in one of the most beautiful tourist spots. Many choose Riviera Maya with its sandy beaches, blue ocean, and easy lifestyle. Opportunities to invest and buy your own properties are good. Many of the locations in Riviera Maya offer exciting opportunities accessible to foreigners.
The Mexican real estate market has its own peculiarities, like every other market. When you understand the market and its complexities you will save time and stress. As a foreigner, you depend on trustworthy real estate agents and real estate advisors to help you navigate the market.
To find and buy your property in a foreign land, can feel difficult. With this basic information, you will feel more comfortable and confident.
Is it easy to buy property in Mexico as a Foreigner?
The short answer is yes. Ownership of properties by foreigners is through the Mexican constitution. In the 1917 constitution, foreigners could not own a Mexican property.
In 1973, a new constitution allowed foreigners to own property only in the non-restricted zone in Mexico.
But, in 1993 new constitutional amendment created a new system called Fideicomiso. This system allows foreigners to buy properties in the restricted zone too.
The restricted zone is within 100 kilometers of the international borders. Also within 50 kilometres of Mexico coastline at high tide.
What is a Fideicomiso? How does it work?
Through the Fideicomiso system, a foreigner can buy a Mexico property. A bank acts as the trustee. The bank is the legal owner while you are the beneficiary of the trust. You as the beneficiary retain all legal rights of ownership.
As a result, you can sell, rent, and transfer your property to anyone. You can even pass it down to your children. The trust is for 50 years. You renew for another set of 50 years. You have another 10 years after those 50 years to renew the trust.
Note: You will incur some bank charges on an annual basis. The fee is based on the value of the property you acquired.
Can I Purchase my Mexico property without a Fideicomiso? Is there another way?
There is another way for foreigners to buy property in Mexico. This process is different to the fideicomiso system. This process is through a Mexican corporation. The company can be 100% owned by a foreigner.
This option is often used by foreign investors who buy large properties. Mexican corporations can own properties. With full rights of ownership in restricted areas. Mexican corporations cannot own single-family residences.
So if you are looking to invest in the real estate here, we advise you make use of this process instead.
Do I need a Realtor to buy my Property in Mexico?
Acquiring your property in Mexico is not so different from the process in your own country. A real estate agent helps you find your property and negotiate on your behalf. It’s much easier this way.
Another process is to visit the foreign secretary’s office to get a permit to buy your property. The permit contains a clause that denies you from consulting a foreign jurisdiction on your property.
The most important thing in this process is to involve a reliable and trustworthy lawyer. They will help you review and verify the land deed before paying for the property. The process of getting a property registered may last anywhere between 48 to 108 days.
Caribe Luxury homes have a trustable lawyer for you. We can also recommend you highly reputable lawyers who have many years of experience too.
What are the costs involved in buying Property in Mexico?
Aside from your agreed price for the property with the seller, you will incur extra costs.
Expect to incur costs like Notary costs. The notary ensures legal procedures. They ensure proper documents are present. Very important.
Other costs are the acquisition tax, title insurance, and registration fees.
And if you own a property and you’re thinking of selling, agent fees and the relevant taxes are what you need to settle.
To save yourself time and hassle. We can help you. We make sure you get a great deal on your property. We make sure you get your property legally within Mexican law.
Because it’s important you seek experienced professionals to guide you.
Our experienced real estate company help you all the way. Helping you find your investment property and luxury home with ease. We want you to feel at home and safe with your new Mexico property. We are friendly and always open to chat to you.