Properties in México can be legally purchased by foreigners

If you intend of purchasing a property outside the restricted area (32 miles from the coast or 63 miles from the borders), you can do it simply. The same way you can do it anywhere else in the world.

Fideicomiso

To purchase a property that is within the restricted area, which includes Mérida and other areas of Yucatan, you need to sign a trust contract with a Mexican bank. Such contract is called a "fideicomiso", and with it, your name and the bank's appear in the "escritura" (contract).

The contract creates a trust for the benefit of the foreign buyer. The bank has a fiduciary obligation to the owner. The owner retains all the benefits of ownership and has legal rights to rent, sell or inherit property as theirs. Normally these contracts expire after 50 years old. They can be renewed at the end of those 50 years for a further 50. There is no limit on the number of times it can be renewed. The renewal cost is currently about $ 900 USD.

Currently, the cost to start a trust is approximately $ 28000 USD. There is an annual fee to the bank for maintaining the trust. This is based on a percentage of property value. An estimated value of a house in the range of $ 100000 USD is approximately $ 600 USD a year.

Currently, the law only allows trusts properties of less than 2000 square metres (about 21520 sf). You can apply for an exception to this law.

Owning a Mexican company

If your property is over 2000 square meters, can be proprietary creating a Mexican company and take action on it. The cost to create a company is approximately $ 1500 USD and legally registered. You need to be incorporated under the laws of Mexico and the proceeds under the supervision of an accountant. The cost of a meter varies from $ 50 to $ 200 per month, depending on which so much activity takes your accounting.

To form the company requires at least two partners least 18 years of age. The legal representative of the company must rely on Visa FM-3. You can apply for a visa yourself in the offices of Mexican migration or you can hire a lawyer to do it for you. The cost is about $ 500 USD. It is also recommended to create a company if you plan to form a business.

If you want to buy a property, contact us!