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Land For Sale in Mexico: Different Types of Land for Sale in Mexico

by Alice Genes

It’s always wise to purchase a piece of land for sale in Mexico. The country has seen major improvements in the way it handles real estate in recent years and with the leveled currency exchange rate, someone from the US or Canada who retires in Mexico would actually enjoy a more comfortable life. The beaches are beautiful, the culture is rich with a perfect blend of native Mexican ancestry and Spanish influence, and the scenery in this country is just beautiful. Of course purchasing land takes more than appreciating the view. A lot of research is required especially when it comes to making a sizable investment. To start off, there are four different kinds of land for sale in Mexico.

The Coastal Line

First of all, there is the Federal Maritime Land Zone. This is actually government owned so even Mexican citizens cannot own this type of land. The land stretches across the international borders and all of the land that embraces the ocean, including the beaches along the Oaxaca Coast. It goes from the main high tide line all the way up sixty-six feet of the beach. You need to secure a special permit to rent this type of property and it is mostly used for beach resorts.

Restricted Areas

Then there is the Restricted Zone that goes from sixty-six feet off the beach to 32 miles off the ocean or 64 miles off the international borders. This is the land that foreigners are mostly after because it can be purchased via a Mexican Bank Trust, otherwise known as a fideicomiso. The reason why non-Mexicans are hot for this kind of land is because it empowers them of the rights they would have if they had purchased real estate in their own country. This means the land and whatever sits on it, whether a house or business property, can be leased, sold, and even inherited to their children. Mexican nationals do not need a fideicomiso to purchase the land and instead they simply have to acquire a deed referred to as the escritura publica.

Land for the Public

The Unrestricted Zone is any land that goes beyond the borders of the Restricted Zones. Foreigners can acquire this land without the use of the expensive fideicomiso procedure and simply have to acquire the escritura publica deed instead. Many of the colonial cities of Mexico fall under this kind of land.

Land For The Public

Ejido Properties

Last in line is the Ejido land. Acquiring a deed for this kind of land is almost impossible and it is mostly sold by developers who promise that the title can be cleared after several years. It’s communal land anyway therefore it is only reasonable to pursue owning this kind of land if you own a Mexican corporation.

To purchase a piece of land, you will need to acquire either the fideicomiso or escritura publica deeds of sale and to have the legal documents properly signed by a Mexican Notary Public. Considering how good retirement life is in Mexico, and how relatively easy it can be for foreigners to acquire land for sale in Mexico, now may be the right time to look into your options before the market prices go up.

Can You Own Land in Mexico as a US Citizen?

Yes, US citizens can own land in Mexico, but there are restrictions. In the Restricted Zone, foreigners must use a fideicomiso to hold the title. Outside of these areas, they can purchase land directly using an escritura publica. The fideicomiso is a renewable 50-year bank trust that grants all ownership rights to the foreign buyer.

How Much Is Land in Mexico?

The cost of land in Mexico varies widely based on location, size, and type of land. For example, land in popular tourist areas like Cancun or Playa del Carmen can be significantly more expensive than rural land in less developed regions. Prices can range from $20,000 USD for smaller, rural plots to millions of dollars for prime beachfront properties.

How Much Does 1 Acre of Land Cost in Mexico?

The cost of 1 acre of land in Mexico varies significantly depending on the location, development potential, and proximity to popular destinations. In rural areas, prices can start as low as $1,000 to $5,000 USD per acre. However, in highly sought-after regions like the Riviera Maya, Puerto Vallarta, or near major urban centers, prices can escalate dramatically, ranging from $20,000 to $100,000 USD or more per acre. Factors such as access to utilities, infrastructure, and scenic views also influence the cost.

Is It Worth Buying Land in Mexico?

Many find it worthwhile to buy land in Mexico due to lower costs compared to the US, the potential for tourism-related business opportunities, and the attractive retirement lifestyle.

However, it’s crucial to conduct thorough research and consider factors like legal requirements, land use regulations, and potential returns on investment.

Legal Requirements and Processes

Land Use Regulations and Zoning Laws

Understanding land use regulations and zoning laws is critical, especially if you plan to develop the land. Different zones have specific regulations on what can be built and how the land can be used. Check with local authorities to ensure your plans comply with these regulations.

Potential for Development and Investment

Consider the potential for development and investment when purchasing land in Mexico. Areas with growing tourism and infrastructure development may offer better returns on investment. Additionally, consider the availability of utilities and accessibility of the land.

Climate and Environmental Factors

Mexico’s diverse climate and environmental conditions can impact your decision. Coastal areas are prone to hurricanes, while some inland regions may have limited water resources. Understanding these factors can help you make an informed choice.

Financing Options for Purchasing Land

Insurance for Land and Property

Insurance is another important consideration when buying land in Mexico. Property insurance can protect your investment from risks like natural disasters, theft, and vandalism.

Financing Options For Purchasing Land

Make sure to research and purchase a comprehensive insurance policy that covers all potential risks associated with your property.

Community and Lifestyle Considerations

The community and lifestyle of the area where you purchase land are crucial. Mexico offers a variety of lifestyles, from bustling city living to tranquil beachside communities. Consider what type of environment suits you best. Engaging with local communities can provide insights into the area’s culture and amenities, helping you make a more informed decision.

Tax Implications for Foreign Landowners

Understanding the tax implications of owning land in Mexico is essential. Foreign landowners must pay property taxes (predial), which are generally lower than in the US. Additionally, there might be capital gains tax if you sell the property. Consulting with a tax advisor who understands Mexican tax law can help you navigate these obligations.

Hiring a Real Estate Agent

A knowledgeable real estate agent can be invaluable in your land purchase. Look for agents with experience in dealing with foreign buyers and a good understanding of the local market. They can help you find suitable properties, negotiate prices, and handle the paperwork involved in the transaction.

To purchase land in Mexico, you need to obtain either the fideicomiso or escritura publica deeds and have legal documents signed by a Mexican Notary Public.Investing in Mexican land can offer a rewarding experience, blending financial benefits with the country’s vibrant culture and natural beauty.

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