Tulum, a serene coastal town in Mexico’s Yucatán Peninsula, is renowned for its archaeological wonders, white sandy beaches, and bohemian vibe. As Tulum’s popularity as a global tourist destination surges, many visitors contemplate the idea of owning a piece of this tropical paradise. But is it feasible for foreigners? Let’s navigate the path of property ownership in Tulum for those hailing from foreign shores.
Understanding the Fideicomiso System
Just like other coastal regions in Mexico, Tulum falls under the “Restricted Zone” for foreign property ownership. However, Mexico’s innovative “Fideicomiso” system provides a solution. Here’s a breakdown:
- Trust Agreement: The Fideicomiso is a trust agreement established with a Mexican bank. While the bank holds the property title, it does so on behalf of the foreign purchaser.
- Beneficiary Rights: As the beneficiary of the trust, the foreign buyer enjoys rights akin to direct ownership. They can lease, sell, or modify the property as they see fit.
- Duration: The trust lasts for 50 years but can be renewed, ensuring that the property remains in the beneficiary’s control indefinitely.
Step-by-Step Guide to Buying Property in Tulum
Acquiring property in Tulum can be a smooth process with the right approach:
- Research: Start by understanding Tulum’s property landscape. Familiarize yourself with the local market, potential growth areas, and property values.
- Select a Property: With research in hand, scout for properties that align with your preferences and budget.
- Engage a Local Real Estate Agent: A local agent can offer insights, connect you with sellers, and simplify the negotiation process.
- Appoint a Notary: In Mexico, notaries are crucial for property transactions. They ensure that the sale adheres to all legal norms, verify property titles, and facilitate the Fideicomiso creation.
- Initiate the Fideicomiso: Collaborate with a trusted Mexican bank to set up the trust. This involves paperwork, setting trust terms, and verifying your identity.
- Conclude the Sale: Once all legalities are sorted, finalize the sale. Transfer the funds, settle any taxes, and obtain the trust document that affirms your beneficiary status.
Cost Breakdown
Owning property in Tulum comes with certain expenses:
- Property Price: The negotiated cost of your chosen property.
- Bank Charges: There are fees for both establishing and annually maintaining the Fideicomiso.
- Notary Charges: Notaries levy fees for their array of services, from legal checks to handling paperwork.
- Taxes: On top of the property price, a transfer tax is applicable. Additional local charges may also apply based on the property’s specifics.
Rights and Duties of the Property Owner
Being a property owner in Tulum via the Fideicomiso system grants you several privileges:
- Residency: You can reside on your property without any hindrances.
- Rental Opportunities: You’re free to rent out your property, be it for short vacation stays or long-term tenancies.
- Resale: If you choose to sell, you can either transfer the trust to another foreign individual or sell outright to a Mexican national.
However, these rights come with responsibilities. It’s essential to maintain the property, comply with local regulations, and ensure timely payment of taxes and fees.
Buy a property in Tulum Mexico as a foreigner
Tulum, with its blend of historical significance and natural beauty, is a dream destination for many. While the idea of buying property here as a foreigner might seem complex at first, the Fideicomiso system makes it a straightforward endeavor. If Tulum’s allure beckons you, rest assured that owning a slice of this magnificent locale is not just a dream, but a tangible reality.
Click here to contact our real estate agents in Tulum Mexico at no obligation. We help you understand the process and start looking for your dream property.
