Home Investing in Mexico Real Estate in Mexico – Substantial Changes to Property Ownership Real Estate in Mexico – Substantial Changes to Property Ownership by Erin May July 31, 2013 by Erin May 4.2K We are excited to announce new information received from our real estate lawyer surrounding new changes for foreigners buying real estate in Mexico. Traditionally foreigners have faced restrictions from owning real estate in Mexico. In the past foreigners could not own real estate in Mexico in the ‘Restricted Zone’, which is within 50 kilometers from the shore and 100 kilometers from the border. However, Mexico’s authority has been applying legal loopholes to allow foreigners to acquire real estate within these restricted zones for residential reasons.[divider_flat] The most broadly used legal loopholes is the figure of the ‘Fideicomiso’, which is a legally sound trust used to allow foreigners to own real estate in Mexico. Although a fideicomiso is completely legal, it has in the past caused confusion for investors and may have deterred potential investors from acquiring property in Mexico. It also may have resulted in the lack of regional development for different areas of Mexico. We are happy to announce a huge step toward eliminating this constitutional restriction by legislators of Mexico. This step will permit foreigners to own fee simple real estate in Mexico for residential purposes. On April 23, 2013, Mexico’s Lower House approved a Constitutional Reform to remove the aforementioned restriction and send the bill for discussion and possible approval from the Senate, which will be voting on the next following weeks. Assuming that the Bill will pass on the Senate, it will still be required to go through a comprehensive approving process by 2/3 of Mexico’s 32 States. Consequently, many steps for the implementation of this Constitutional Reform will follow until we will learn how this historical change will work for the benefit of all foreigners looking to buy real estate in Mexico. Own Mexico will provide you with updates on how this will affect property investments and purchases.[hr] Related Articles for Real Estate in Mexico: http://www.ownmexico.org/blog/top-reasons-for-a-mexico-property-investment/ http://www.ownmexico.org/blog/real-estate-in-mexico/ http://www.ownmexico.org/blog/investment-in-mexico/ 0 FacebookTwitterPinterestEmail Erin May Erin May is the owner/operator of Bayside Vacations Huatulco. She has a passion for travel, the outdoors and all things Mexico. She spends her time traveling, living and working in Huatulco Mexico. 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November 15, 2024 2 comments James Wood August 27, 2014 - 3:10 pm Old news… law didn’t pass thru senate… banks would have to say goodbye to a windfall and have learned to “lobby” welll…I think the Mexicans invented it (smile) Anyway it would be much appreciated if you could elaborate on the changes to Mexican real estate law effective Sep 1,2014. Seems you will only be able to purchase property if you are a “Resident” (temp or perm) after that date… That is a profound change to the rules. Is it true? thx Reply brentmay August 31, 2014 - 2:06 pm Hello James, Thank-you for your comment. You are correct the law didn’t pass but our sources tell us it was not voted against but due to running out of time. We still believe we have not seen the last of outright ownership but when it goes through is a good question. If it were to be passed at both levels of Federal government it then needs to be approved by over 50% of the states. We will keep you updated via our newsletter. We will be publishing our own article in the upcoming Own Mexico September newsletter, but yes you are correct, buyers need to become temporary or permanent residents to own property here. We are meeting with our Mexico lawyer in the next week to make sure we understand the process from start to finish and to ensure we have a streamlined system for our clients to follow. Early reports indicate Mexico has set a very easy and straight forward process for this. We already have temporary residency and it was not a problem for us to qualify and receive this status. Saludos! Brent Reply Leave a Comment Cancel Reply Save my name, email, and website in this browser for the next time I comment.
