Purchasing Property in Mexico
Contrary to what a lot of people think,
it is not that difficult to purchase real
estate in Mexico. There are, however, restrictive
zones that will require a buyer to either
set up a Mexican Corporation or purchase
property through a bank trust known as a
'fideicomiso'.
What is a Fideicomiso?
It is a bank trust for ownership of real
property in Mexico. Article 27 of the Constitution
of the Republic of Mexico prohibits foreign
ownership of real property located within
30 miles of any coastline or 60 miles of
either border. This is referred to as the
'restricted zone'. In 1973, recognizing
that many Americans wanted to own land with
the rights of ownership, and that this would
bring needed dollars to the country, President
Echeverria approved the bank trust, fideicomiso,
form of ownership which is available to
non-Mexicans. This regulation was further
expanded in the Foreign Investment Law of
1989. Properties located within the restricted
zone, which includes the entire Baja Peninsula,
may be acquired for a foreigner through
a Mexican bank trust naming the buyer of
the property as the beneficiary of the trust.
Title is placed in the name of the bank
selected by the buyer(s) as his trustee.
The bank administers the property according
to the instructions of the beneficiary/buyer.
The beneficiary/buyer has full ownership
rights as long as they conform to the general
laws of Mexico. The term of the trust (fideicomiso)
is 50 years and can be renewed for additional
50 year periods. The property may rest in
one beneficiary indefinitely, provided it
is renewed within the terms established
by Mexican law. To establish a fideicomiso,
a permit must be obtained and papers filled
out. Once granted, the bank draws up the
trust document which is recorded in the
municipality where the property is located.
The cost to set up either a trust or corporation
for San Felipe Villas is $2,000 USD. We
have a legal team that can facilitate this
process and guide you in the selection of
which option is best suited for each buyer.
There are annual fees for both types of
ownership. For a trust, the fee is roughly
1% of the value of the asset. The costs
for a corporation will include the monthly
accounting and annual tax return that will
be filed in Mexico.
Automobile Insurance
Mexican automobile insurance is required
to drive in Mexico. If you are coming from
the United States you can purchase the insurance
prior to crossing the border into Mexico.
There are several sources for this. Online
you can use: www.aaa.com
Also, Baja4Less can provide discounted auto
insurance. Their phone number is: 888-225-BAJA(2252)
|
