How can I acquire property in Mexico as a foreigner?

In Mexico's dynamic real estate market, more and more foreigners are looking to acquire properties, whether for investment, a second residence, or retirement. However, purchasing property in Mexico as a foreigner requires following specific steps and meeting legal requirements to ensure a safe and straightforward transaction.

The first crucial step is to consult with a specialized real estate lawyer in Mexico. At ActLaw, we have the necessary experience to guide clients through the entire legal process, ensuring compliance with all necessary requirements.

It is important to understand the restrictions of the "restricted zone" in Mexico, which includes areas within 50 km of the coastline and 100 km of the international borders. In these areas, foreigners cannot directly acquire property but can do so through a bank trust (fideicomiso).

To acquire properties within the restricted zone, it is necessary to establish a bank trust with an authorized Mexican bank. In this arrangement, the bank acts as the trustee while the foreign buyer is the beneficiary, guaranteeing all rights of use and enjoyment of the property. This trust has an initial term of 50 years and is renewable.

Additionally, all foreigners must obtain a permit from the Ministry of Foreign Affairs (SRE) to acquire properties in Mexico, regardless of whether they are within or outside the restricted zone.

Once the property is selected and the terms specified in a signed offer letter are negotiated, the next step is to sign a purchase agreement. At ActLaw, we review and approve this contract to ensure all legal aspects are in order and to protect the buyer's interests.

Payments to the seller are generally made via bank transfer, in accordance with the terms established in the purchase agreement. In addition to the purchase costs, taxes and fees such as the Property Acquisition Tax (ISABI), trust expenses for the first year and then the annual fee, and notary fees must be settled.

The final step involves formalizing the purchase before a notary public, who verifies that all documents are in order and registers the property in the foreign buyer's name in the Public Property Registry.

While acquiring property in Mexico as a foreigner may seem complex, with the proper guidance and legal expertise, the process can be clear and secure. At ActLaw, we are committed to assisting our clients at every stage of the process, ensuring their investment is protected and that they comply with all applicable legal regulations. Contact us for more information and to start your property acquisition process in Mexico with confidence and peace of mind.