 Article 27 of Mexico's 1917 Constitution prohibits a foreigner from buying title to residential real estate in areas referred to as "Mexico Restricted Zones": land located within 30 miles of the coastline or 60 miles off either border and all of the Baja Peninsula.
Established in 1973, the fideicomiso law provides a legal, simple and safe circumvention of the constitutional provisions. The trust places legal title in the name of a Mexican bank under a permit from the Secretary of Foreign Relations, so the bank may administrate the property on behalf of the buyer/beneficiary, who enjoys exactly the same rights of ownership as a Mexican national.
A permit to establish a trust can be obtained for a period of 50 years and then renewed multiple times, establishing perpetuity for owners of rights in Mexican properties. Should the foreigner wish to sell, he may assign his rights to the buyer or the buyer may obtain a new trust permit. The cost for the permit and registration in the foreign investment registry is currently about 1,950 dollars and bank trust administration fees generally range from 200 dollars to 750 dollars annually. |
