Investing in Mexican Real Estate: What You Need to Know
Over the past 20 years, buying property in Mexico has become a secure and attractive investment for foreigners, thanks to modern tools like U.S. title insurance, bonded escrow services, and clear legal structures.
How Foreigners Own Property in Mexico:
Because Mexican law prohibits direct foreign ownership within 60 miles of borders and 30 miles of the coast, non-Mexicans use a Fideicomiso (Mexican Property Trust). This trust, established with a Mexican bank, gives the foreign buyer all rights of ownership—use, improve, rent, sell, or bequeath the property—similar to owning property in the U.S. or Canada. The trust is initially valid for 50 years and can be renewed indefinitely.
Key Details:
- The trust is issued through Mexico’s Department of Foreign Affairs.
- The bank acts as the Trustee, while the foreign buyer is the Beneficiary.
- Title insurance is recommended and available through U.S. providers.
- Properties can also be owned through a U.S. corporation, but using a Mexican corporation is only allowed for commercial (non-residential) use.
Purchasing Process:
- Trust setup typically takes up to 180 days.
- Never pay for a property before receiving the Trust.
- Use a bonded U.S. escrow service to protect your funds.
- A Trust is not optional—it’s essential for proper ownership and tax compliance.
Final Tip:
Don’t rely on verbal agreements or informal contracts—always secure a Trust and title insurance to protect your investment.
For more details check out the Gobierno de Mexico website.