Investor Center :: Buying Real Estate in Mexico

Why Mexico?
The Yucatan coast of Mexico is one of the few places on this earth that offers beautiful emerald blue ocean water, some of the best diving in the world and any sport you desire.. Between the exciting nightlife in Playa Del Carmen, warm tropical weather, friendly people, famous Mayan ruins, and vast activities, this is the ultimate vacation destination for both the active sports enthusiast as well as the professional sunbather.

Mexico is now rated one the best countries for investment opportunities in real estate growth as well as one of the safest for real estate investments (secured under recent changes in Mexican law.) Foreigners can own coastline land anywhere in Mexico with Trusts held by Mexican banks. These Trusts are set up as 50-year renewable lease without limitations. Foreign Land owners and homeowners can enjoy rights of ownership equal protected by the Mexican government.

In the past Mexico had problems with foreign investors due to uncertainties in Land title, which resulted in many foreigners being discouraged by ownership complications. There were also restricted zones, which consisted of any land within 50 kilometers of the beach and 100 kilometers from any border. To encourage foreign investment, in 1973 Mexico adopted a Bank Trust system called Fidiecomismo, which permitted foreigner to buy and own coastal and border properties through a trust deed. This allowed foreigners to exercise complete control over real estate in the restricted zones. Under the Fidiecomismo , the Mexican bank through the trust hold the title to the property in any restricted zone. Just like in the United States, the owner who is the beneficiary of the trust, administers the trust and therefore controls the property. He or she may transfer ownership, lease or improve the property at will. Foreign owners may also enjoy capital gains on sold property and can also instruct the trust to pass on the property to future generations without the cost of inheritance tax.

Mexican law also protects trust beneficiaries from any problems the Bank may have. Never can a trust be seized to satisfy judgments against the bank. In 1994 Mexican law established that Trust Deeds are to be for 50 year terms with and are renewable indefinitely in 50 year increments. Mexican notaries are appointed by the government to control all recordings and documentation of real estate corporate and private records regarding transfers of ownership. Notaries also perform title search's similar to American title companies and guarantee your property to be unencumbered. Fidiecomismos are solid protection for your investment capital and has reshaped the Mexican tourist industry into one of the Best places on earth to park your money.

Foreigners may also own rental properties or other businesses which own property by forming a Mexican Corporation owned by foreigners. In this case the Mexican Company, which would hold the title, owns the property and a trust with a bank is not needed. Though the only benefit would be a few bucks for annual trust fees. The Closing is performed by the Notaries and most properties only require 30-60 days complete the closing process. Though it might take considerably longer to receive the banktrust or actual title. You can purchase Title Insurance for about 1% of the purchase price but this generally not needed with the Notary system. Notaries are government appointed attorneys trained specifically to handle legal matters in property transfers. Purchasing property in Mexico is easy and financing is also available through Mexican as well as some American Banks. Banamex, one of Mexico's largest Banks is owned by American Citigroup. We will be glad to provide with Financing Services for your convenience.