5 steps to ownership in Mexico
Use these 5 steps to ownership in Mexico of the property near the beach if you are a foreign national. You can find tons of material on how this works online, this is easy to understand. If you want to know more on this topic read The buying process. Ask the broker to clear things up.
Foreigners can own outright.
1- FIDEICOMISO. The title to the property is held in a Mexican bank trust called a FIDEICOMISO.
In Mexican real estate transactions involving foreigners, the legal framework often requires the use of a FIDEICOMISO, which is a trust held by a Mexican bank that safeguards the title to the property. This mechanism allows non-Mexican individuals to hold interests in Mexican real estate within the restricted zone along the coast and borders, providing a secure way for them to enjoy ownership rights.
The FIDEICOMISO structure effectively acts as a vehicle through which foreign investors can buy property in Mexico while complying with the country’s laws and regulations. As such, the FIDEICOMISO arrangement grants the foreign investor the beneficial use, possession, and transfer rights of the property, effectively allowing them to enjoy all the benefits of property ownership without technically holding the title themselves.
This structure not only offers legal protection and assurance to the foreign buyer but also ensures that the property rights are secure and compliant with Mexican real estate laws. Additionally, the FIDEICOMISO arrangement involves specific provisions for the succession of the property, covering how the ownership rights will be transferred in case of the investor’s passing.
Overall, the use of FIDEICOMISO in Mexican real estate transactions serves as a crucial legal mechanism that facilitates foreign investment in the country’s vibrant real estate market while respecting local regulations and ensuring the seamless transfer of property rights.
2- THE BUYER. Is THE BENEFICIARY of the Trust.
The buyer, who is often the individual or entity purchasing a property or asset, plays a significant role as the beneficiary of the trust. This means that the buyer stands to gain various advantages and rights as outlined in the trust agreement. As the beneficiary, they are entitled to receive benefits, such as profits or distributions, from the trust or the assets it holds.
Additionally, the buyer’s status as the beneficiary gives them a degree of control and influence over the trust’s operations and decisions. It also implies that the buyer has a legally recognized interest in the trust property and that they have the right to enforce their claims or interests as outlined in the trust document.
Overall, being designated as the beneficiary of a trust is a crucial position for the buyer, providing them with protections, benefits, and a stake in the trust’s assets and operations.
3- THE MEXICAN BANK. Acts as the Trustee.
4- THE BUYER HAS ALL. The Rights of fee simple ownership just as they do in the States or Canada.
5- THE FIDEICOMISO IS RENEWABLE. Every 50 years and can go on Forever.
The fideicomiso, which is a legal vehicle commonly used in Mexico, possesses the unique characteristic of being renewable every 50 years. This feature allows the fideicomiso to sustain its validity and purpose over time, providing a framework for long-term asset management and ownership.
With this renewable nature, the fideicomiso can essentially continue indefinitely, enabling individuals and entities to plan and execute strategies that extend far into the future. By undergoing the renewal process every 50 years, the fideicomiso ensures that its arrangements and protections remain in place, adapting to changing circumstances and legal requirements.
In essence, this perpetual renewal mechanism offers stability and continuity to the holders of fideicomisos, granting them the security of knowing that their interests are safeguarded over the long haul. Furthermore, the renewable aspect of the fideicomiso reflects a commitment to sustainability and longevity, aligning with the principles of effective estate planning and asset protection.
Overall, the ability of the fideicomiso to be renewed every 50 years, potentially in perpetuity, underscores its significance as a versatile and enduring tool in the realm of legal and financial structures.
The cost of this ranges from $500 to $1000 USD to set up. And, you do have to pay your yearly fee of about $600 to $800 USD per year for maintenance.
A fideicomiso is set up by a public notary. You can pick the bank or institution you want to use as your bank trust.
