Real Estate Acquisition and Investment in Mexico: Key Considerations

Acquiring real estate in Mexico as a foreign individual or corporation requires careful planning and compliance with specific legal requirements. Below are the most relevant items to take into account when investing in property:

1. Legal Restrictions on Property Ownership

• Restricted Zone (Zona Restringida): Foreigners cannot directly own property within 50 km of the coast or 100 km of international borders. Ownership in these areas is possible through a Fideicomiso (bank trust) or a Mexican corporation.

• Non-Restricted Zone: Outside these restricted areas, foreigners may acquire property with direct ownership (fee simple).

  
  

2. Fideicomiso (Bank Trust)

A Fideicomiso is a trust agreement with a Mexican bank, which holds legal title to the property on behalf of the foreign buyer. The buyer retains all rights of use, lease, and transfer. The trust is initially granted for 50 years and can be renewed indefinitely.

3. Mexican Corporation Ownership

Foreign investors may also acquire real estate through a Mexican corporation. This structure is often recommended for commercial or rental properties. It requires tax compliance and adherence to corporate regulations.

4. Due Diligence & Title Verification

Before closing a transaction, it is essential to:

• Verify that the property has a valid title registered with the Public Property Registry.

• Confirm that the seller is the legal owner.

• Ensure that the property is free of liens (gravámenes) or encumbrances.

  
  

5. Role of the Notary Public (Notario Público)

All real estate transactions in Mexico must be formalized before a Notary Public, who acts as a government-appointed attorney. The notary is responsible for:

• Certifying the legality of the transaction.

• Ensuring compliance with anti-money laundering regulations.

• Registering the deed in the Public Property Registry.

  
  

6. Taxes and Ongoing Obligations

Property ownership in Mexico is subject to tax implications, both at the time of acquisition and during ownership. While the specifics vary depending on the location and nature of the property, it is essential for investors to understand their obligations and plan accordingly.

🔑 Investing in real estate in Mexico is a secure and attractive opportunity when structured correctly. With proper legal guidance—particularly regarding restricted zones, trust arrangements, and due diligence—foreign investors can protect their assets and ensure full compliance with Mexican law.