Yes, thanks to a property law known as the Fideicomiso.
In 1973, the Mexican Constitution was amended to allow foreigners to own beachfront property in Mexico via a bank trust known as a Fideicomiso. This trust allows an individual to purchase and own real estate within restricted zones, which includes beachfront properties and land located within 50 kilometers of the coast.
The Fideicomiso is established between a foreign buyer (the beneficiary), and a bank (the trustee). The legal relationship is that of lender and borrower, where the trustee has the right to dispose of the property under certain circumstances, such as insolvency or bankruptcy of the beneficiary. However it is important to note that this is primarily an arrangement between two parties: you can use your property as you wish during your lifetime but you cannot sell it without approval from your bank trustee.
In most cases, trusts are established for 50-year terms; however, they can be renewed upon expiration. Beneficiaries may also transfer their rights at any time during its term by substituting another party for themselves; for example if you decide to sell your property you are able to transfer ownership into another person’s name instead of canceling existing trust. The new owner will then be given all rights related to acquiring title on said property.
The Fideicomiso is a trust that allows you to purchase property in Mexico. You own the property and the bank is the trustee of your property.
If you don’t want to incorporate in Mexico, then a Fideicomiso, or trust, is the easiest way to own your property. In simple terms, the bank holds the title of your property in trust and you are the beneficiary of this trust. This trust is administered by a Mexican bank that acts as the trustee. You have all rights of ownership except that the trustee holds title on behalf of the beneficiary (you). These trusts are renewable every 50 years and typically cost around $500 per year.
A US citizen can own a condo in Mexico.
If you want to own a condo in Mexico, here’s what you need to do:
- First, look for a house or condo you want to buy. When you find it, sign an offer and make sure the contract is written in your favor.
- Get two copies of your passport and two copies of your FM3 or FM2 (tourist visa) stamped at the border before entering Mexico if coming from the US. If not coming from the US, get one copy of each document per person buying property as well as one copy of every page in their current passport.
- Find a Mexican attorney who is familiar with real estate law that can help you get a fideicomiso (bank trust). The lawyer will be able to help guide you through the process and answer any questions that may arise along the way.
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