Published On: Fri, Jan 2nd, 2015

A Guide For Foreigners Seeking to Buy Property in Mexico

Share This
Tags
Buying property

Buying property the right way

Owning property in a foreign country is a lifetime dream for many.  Non-Mexican citizens can buy property in Mexico. When using a reliable real estate agent (like one from DH Realtors, of course), it can be a safe and easy process. All foreigners have the full protection of the law with regards to real estate transactions. You do not have to be resident in Mexico to own property here, so there is no need to immigrate or even qualify for resident status in order to invest in property in Mexico. You will need to check with your trusted agent or attorney to see how you will hold property title, prior to purchasing.

The Mexican Constitution had previously banned foreign nationals from owning property within the restricted border zones. This was intended to protect Mexican soil from foreign invasion. The Foreign Investment Law of 1973 was a constitutional amendment which changed this allowing foreigners to now purchase real estate free outright except inside the “restricted zone’; consisting of all lands within 100km (64 miles) from an international border and 50km (32 miles) from the coastline at high tide. For properties within this zone, foreigners need to use a bank trust called a fideicomiso. All real estate transactions involving these trusts are governed by federal law. Merida and all coastal properties fall into the restricted category. Outside the zone, you can own property with a title issued in your name.

The fideicomiso is a bank trust in which the bank acts as a trustee by holding the trust deed for the purchaser who is the beneficiary of the trust. The fideicomiso is authorized by the Mexican government through the Ministry of Foreign Affairs. The bank is the legal owner of the real estate, but the beneficiary retains all legal rights of ownership and as a result may sell, rent, and bequeath the fideicomiso or property to whomever they choose or their heirs.

The fideicomiso offers the buyer added securities since the bank is required to verify the property’s ownership and be sure that it is free of liens. The trust is established for a 50-year period which is renewable for another 50-year period after that. If the 50-year period expires without renewal, the owner has another 10 year period in order to submit an application for renewal. When a home or land is purchased with an existing fideicomiso, the remainder of that trust is merely transferred to the new owner or can be renewed at that time. The bank charges an annual fee for holding the property which is based upon its value.

Mexican corporations may be 100% foreign-owned and hold title to property within the restricted zone (without a fideicomiso). These corporations were once a popular option for foreign investors looking to buy within the zone. They now have more restrictions and also have further reporting and accounting requirements than the fideicomiso; making their use in purchasing property not as advantageous as in the past years.

Services of a notary public are required in any real estate transaction here. The notary ensures that all documents are in order and that all proper legal procedures have been followed. Mexican notaries are probably much different than their counterparts where you currently live. They are actual degreed and experienced lawyers who must be at least 35 years old and pass the notary exam before being appointed by the governor of their particular state. The notary fees are generally paid by the buyer.

There are other additional fees that the buyer should expect to pay at closing. The buyer generally pays the transfer of acquisition tax and all other closing costs as well. The acquisition and transfer taxes both run around 2% of the sales price. The rest of the closing costs vary from 3% to 5% of the stated value.

It is always recommended to use an escrow company! Property purchases here are cash transactions. Remember to use your best judgment when carrying out the financial portion of your property purchase in Mexico. You should use an American escrow company (at DH Realtors, we use Stewart Title) to safely hold the funds; just as you would back home.

Lastly, although they are minimal, don’t forget to pay your property taxes! If you should decide to rent your newly purchased Mexican home, be sure to consider the tax implications of the income generated by doing so. Your diligence in fulfilling tax obligations in this country is your responsibility in the end.

Buying a home, business, or other property in Mexico can be an exciting and stress-free experience; as long as you have knowledgeable and trustworthy people working on your side to guide you through the process here in Mexico. The owners and brokers of DH Realtors have been on the buying side of the transaction personally; here and in many other countries. They draw upon their own past experiences and concerns involving buying in a foreign land to assist in making the process of buying and selling in Mexico as worry free as possible for their clients.

DH Realtors is located in the spectacular city of Merida, the capital of Yucatan and the heart of the Yucatan peninsula. With over twenty years combined experience in the industry, handling property sales, rentals, management, construction, and renovation, we specialize and take great pleasure in finding that dream property for which our clients are searching to call their own. Whether you are looking to purchase, rent, or just enjoy an incredible vacation, we will be happy to assist you. Please feel free to contact us with any further questions or to start your adventure finding that dream home in Mexico.

David Harris / david@meridaproperties.com.mx

David Harris

David Harris

David Harris has an extensive background in both the construction and real estate industries. A currently licensed U.S. building contractor, he studied architecture and engineering before entering the construction industry.  Early in his career, David learned many construction trades: concrete and steel, framing carpentry, trim carpentry, cabinetry, roofing, timber framing, surveying, drywall, tile, and masonry.  In North Carolina he worked as the project manager and estimator for several high-end construction companies tasked with building multi-million dollar vacation homes, townhome developments, and clubhouses in private golf club communities, while also running a remodeling and property management business.  During this time period, David was also co-owner of Carolina Research & Development Inc., which developed building materials for patent and production, and Boone Development Organization, which did real estate and land development for residential subdivisions.  Throughout many of these years, he owned, managed, and rented an all-inclusive villa in Montego Bay, Jamaica which overlooked the ocean.  Not long after retiring to Merida four years ago, David’s love of the industry won over and saw him once again involved in construction and real estate, but this time in Yucatan, Mexico. He can be contacted thru DH Realtors in Merida.

http://meridaproperties.com.mx/

Mexico Travel Care

footer-john-2


Comments

comments

Displaying 18 Comments
Have Your Say
  1. JC says:

    It is about time they got rid of the fideicomiso’s and high bank fees for having the fideicomiso in the banks name. At about $550 US every year for nothing it is getting expensive. There was a proposal to remove this but no dought quickly lobbied to be kept by the banks to get free money off foreigners. The problem with real estate in Mexico are fideicomiso’s, not having it in your own name, capital gains tax calculation uncertainty, and the inability to buy a replacement property, I.e., buy something bigger later on, without having to pay the approximate 5% tax all over again on another purchase.

  2. Linda Lee says:

    David: has the proposal to rid the fideicomiso been killed! Last time I heard the bill has been approved and was sitting in the Senate. Please clarify.

  3. Chuck Smith says:

    I would repeat Linda’s inquiry…
    “has the proposal to rid the fideicomiso been killed? Last time I heard the bill has been approved and was sitting in the Senate. Please clarify.”

  4. Mike Beddoes says:

    The Fideicomiso is alive and well. The proposal is probably alive and well too, but that is certainly up to the sponsor of the bill.

    Additionally, since the Fideicomiso was enabled through a Constitutional Amendment, it would be my understanding that after it passes through the processes in the senate there is still the necessity to have it approved by a majority of states of Mexico. Since there are 32 states I calculate that each of 17 states must approve it even after the senate passes it. I am not an expert on the political processes and I am making some assumptions about the necessity of each of the state legislatures to meet and approve the amendment. I would guess that it might take as long as 2 – 3 years after approval to become law and then probably another year to get it implemented. I think that is an optimistic assessment. I have been a licensed real estate agent in the State of Sonora since 2007 and my experience in Sonora has taught me patience.

  5. Major General Bert K. Mizusawa says:

    I am interested in your property, Please kindly get back to me with your last price. Thank You

  6. Major General Bert K. Mizusawa says:

    I am interested in your property, Please kindly get back to me with your last price. Thank You ,,,,, contact me via email: majorgeneralbertmizusawa@gmail.com

  7. jordanroy says:

    Passports (passportquality@gmail.com) Visas, License, ID Cards, SSN
    We produce fake and real passports, driver’s licenses, birth certificates, ID card for all countries of the world. we are professionals and we have been doing this for more than seven ten years today. We offer only original high-quality fake passports, driver’s licenses, ID cards, stamps and other products for following countries: Australia, Belgium, Mexico, Spain, Brazil, Canada, Finland, France, Ireland, Portugal, Sweden, Germany, Italy, Netherlands, UK, USA, and so many other countries. We are the best producers of quality documents, With over 1 million of our documents circulating over the world. Contact”:passportquality@gmail.com
    Keywords: Passports, Drivers License, ID Cards, Visas, SSN, Diplomas

  8. mary says:

    A MUST READ :Me and my family has been in poverty for about five years now and my husband have left us six years ago and he was very rich he was with another woman who do not even have a child for him and abandon me with my 4 children so one day my son said that his friend saw a post of one man saying that he can help someone get his ex back then my son use his friend’s phone to email the man then he cheated with him so the man said that he will help us I said he was joking so he told us what to do then we did it 4 days later i got a job a very nice one me and my family were living very fine then 2 months my husband came home on his knees he was pleading but now we are now back together again so am telling you now if you have any of this problem[1] you have problem with your ex [2] you want to be rich without joining the illuminate [3] you want to have a baby [4] you are having spiritual problem [5] you have cancer, blind, etc email him now on ogudosolution@gmail.com

  9. universal finance says:

    Do you urgently need short term bridging finance for your business?

    Examples of finance needs:

    · You need immediate access to capital to take advantage of a once in a lifetime opportunity.

    · A short-term liquidity problem arises as a result of funds taking longer to realize than initially planned.

    · Building project approvals delayed by local authorities, deed offices, lawyers and banks.

    · Business transactions that need to be settled, but delayed because of unforeseen circumstances.

    · A project is 90% completed, but the funds have dried up before final completion.

    If none of the above matches your situation you may still try us.

    We are not agents – we have our own fund

    contact us via email: universalfinancemortgage@gmail.com

  10. David P. Mitchell says:

    I greatly enjoyed your guide. I am retiring at th beginning of 2017 and my family and and I are planning on moving to the Merida, Yucatan area and your guide has already cleared up some misconceptions on purchasing a home, or 2 or maybe 3. I should have perhaps families. I hope that should I have other questions about taking on this new adventure that that I might be able inquire for the information from you. We are thinking of renting a place at first getting acclimatized to a whole new climate and country.
    Thank you,
    Dave Mitchell (Utah to Yucatan)

  11. Mrs Brenna Helen says:

    Get a blank ATM CARD and cash good money/funds directly today in any ATM machine around you anywhere in the world. It’s 100% guaranteed secure with no worries of being caught because the blank card it’s already programmed and loaded with good funds in it, in such a way that’s not traceable which also have a technique that makes it impossible for the CCTV to detect you, so get the blank ATM CARD today at our email address: atmblankcardfunds@gmail.com and make good money today

  12. nelly smith says:

    I got my already programmed ATM card to
    withdraw the maximum of $50,000 daily for a maximum of 30
    days. I am so happy about this because i got mine last week
    and I have used it to get $100,000. MR mark wesley is giving out the card just to help the poor and needy. he also advice us to help the needy around us when we get the card so that God will keep blessing all of us. get yours from him now. Just send him an email
    On wesleymarkhackers@gmail.com

  13. Mark says:

    Do you need a credit/financial assistance ? We offer funding at a very low interest rate of 3.5%. All interested applicants are to contact us via email for more information.(brown.scoth8090@gmail.com)

  14. morrismabel says:

    I Lost my Money to scammers but not anymore Well,
    who would have believed this. When I saw a comment
    by one Allison babara, I thought it was one of the Scammers
    ways to convince someone. Looking at his comment, I saw
    an element of doubt since he was telling stories. Well I did it
    50/50 which means I can’t lose my money to any scammer
    again. I contacted the email on the testimony of Allison
    Babara (worldblankatmsolution@gmail.com) and I was
    replied immediately. I was shocked but I didn’t lose my stand.
    I asked them to give me proof to be sure they are not
    scammers like others that I have met before and they sent me
    a proof. Then I requested to get my card which they sent to
    me in Germany in just 3 days. Am happy now because I have
    recovered my cash I lost to scammers. My first withdrawal
    was $10,000 and I couldn’t believe my eyes until I confirmed
    their word which says that I can withdraw up $63,000 in a
    month. WorldblankatmSolution are real because I got my
    card in just 3 days when I requested for one. Contact their
    Email (worldblankatmsolution@gmail.com) for yours. They
    didn’t scam me.
    Morris mabel is my name and if you are scared, please reach
    me through my Email morrismabel82@gmail.com

  15. Mr john oneil says:

    Do you wish to expand your business or in need of financial support to start up a new business? Or for any reason, how much are you seeking for? We give out financial support to individuals, corporate bodies, and companies firms all over the world who need to update their financial status with an affordable interest rate as Low as 3%. you can contact us now for more information through our office Email: johnoneil945@gmail.com

  16. harry says:

    Hi, i just want to share my experience with everyone. I have being hearing about this blank ATM card for a while and i never really paid any interest to it because of my doubts. Until one day i discovered a hacking guy called (OSCAR WHITE). he is really good at what he is doing. Back to the point, I inquired about The Blank ATM Card. If it works or even Exist.He told me Yes and that its a card programmed for random money withdraws without being noticed and can also be used for free online purchases of any kind. This was shocking and i still had my doubts. Then i gave it a try and asked for the card and agreed to their terms and conditions. Hoping and praying it was not a scam. One week later i received my card and tried with the closest ATM machine close to me, It worked like magic. I was able to withdraw up to $4500. This was unbelievable and the happiest day of my life. So far i have being able to withdraw up to $28000 without any stress of being caught. I don’t know why i am posting this here, i just felt this might help those of us in need of financial stability. blank Atm has really change my life. If you want to contact him, Here is the email address oscarwhitehackersworld@gmail.com And I believe he will also Change your Life….

  17. NELLY says:

    Usted y yo entienden que también han gastado la cantidad
    de dinero en este. Pero este pago es justo para el abogado para estar
    en tu soporte para evitar ser cuestionado por tu banco sobre el
    dinero. Esto realmente en realidad protege su dinero y también le
    protege. Y en el caso de que se trate de un accidente.

  18. ANGEL BOTTOMS says:

    THIS IS NO JOKE, LET ONLY THOSE THAT BELIEVE SEE THE LIGHT AND ABOVE ALL BE A LIGHT TO OTHERS

    Hi, My name is ANGEL BOTTOMS and i just want to share my experience with everyone. I have being hearing about this blank ATM card for a while and i never really paid any interest to it because of my doubts. Until one day i discovered a financial group called micro finance group while i was searching for job online. They are really good at what they re doing. Back to the point, I inquired about The Blank ATM Card. If it works or even Exist.
    They told me Yes and that its a card programmed for random money withdraws without being noticed also has a technique that makes it impossible for the CCTVs to detect you can also use it for free online purchases of any kind. This was shocking
    and i still had my doubts. Then i gave it a try and asked for the card and agreed to their terms and conditions. Hoping and praying it was not a scam.
    One week later i received my card and tried with the closest ATM machine close to me
    It worked like magic. I was able to withdraw up to $4000. This Cards comes in Visa/MasterCard. Therefore it works at any ATM Machine that accept Visa/MasterCard Worldwide. This was unbelievable and the happiest day of my life. So far i have being able to withdraw up to $38000 without any stress of being caught. I don’t know why i am posting this here, i just felt this might help those of us in need of financial stability. CYBER HACKERS has really change my life. If you want to contact them, Here is the email address} {greatatmhacker@gmail.com}
    And I believe they will also Change your Life too. Contact their general manager directly with the above email address

Leave a comment

XHTML: You can use these html tags: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>