What is the legal process of buying land in Mexico?
A foreigner buying land in Mexico within 50km (32 miles) from the coastline and 100km (64 miles) from the international border, will have to use the means of a bank trust (fideicomiso) or they may buy property by establishing a Mexican corporation.
A fideicomiso is a real estate trust where the bank (trustee) holds the trust deed for the purchaser (beneficiary). The bank acts as the Trustee, and a client is the Beneficiary of the trust. The client maintains complete control over the trust, and may sell, lease, mortgage, and pass the property on to your heirs. The trust is the beneficiary’s property. Fideicomiso is equivalent to a Living Trust in the US.
The government of Mexico may not expropriate legally purchased property from the owners under NAFTA (North American Free Trade Agreement). The only way for Mexican government to get ownership of land is by buying it from the owners in and only in the rare case it’s needed for public purposes (such as building roads). The same process exists in the U.S. (Eminent Domain), in the UK (Compulsory Purchase) and in Canada (Expropriation).
For more information about buying property in Mexico, please refer to our FAQs.
We would be glad to answer any questions and to refer clients to appropriate notaries and lawyers. Contact us at contact@rivieramayaglobal.com
