Here are some brief answers to common questions. Please don't hesitate to call us and we will be happy to discuss all of your questions and concerns in detail.
1) Is buying property in México similar to doing it in the USA or other countries?
No, purchasing property in México is not the same as in other parts of the world and it is essential that you investigate how the system works before considering any transactions. Please call us and we can explain all options and offer referrals to attorneys and other real estate professionals that we have worked with in the past.
2) How can I legally own property in México?
Recognizing the great demand by foreign citizens for ownership of real estate, the Mexican government implemented a series of Foreign Investment Laws in 1973, modified in 1989 and then again in 1993 in order to incorporate the provisions of the NAFTA treaty, and the Fideicomiso was established for this particular end.
3) What is a Fideicomiso?
A Fideicomiso is an individual land trust established by a Mexican Bank, acting as a trustee, and the beneficiary of that trust is the foreigner who purchases the land for residential usage and that has a valid entry visa. The bank handles all paperwork including filing of all necessary permits with the Ministry of the Interior and Foreign Affairs. The Bank has the responsibility to ensure precise fulfillment of the Trust agreement, assuming full legal, technical and administrative supervision, and protecting all interests of the Trust Beneficiary (foreign purchaser).
4) How long does the Fideicomiso last?
A Fideicomiso is stipulated to last 50 years with multiple options of renewals upon filing an application with the Bank. You can request as many renewals as you want every 50 years, thus owning the property for generations.
5) What rights does the Fideicomiso give the land trust beneficiary?
The beneficiary has the right to use, rent, modify or transfer his property right to anyone as they see fit. Ownership of these rights is evidenced through a deed prepared by a Notary Public, signed by the representative of the Trustee Bank and dully registered with the local authorities.
6) Can foreigners own Commercial Property?
With NAFTA foreigners can own 100 % of a Mexican Corporation and through it own property on direct title, a long as the property has commercial use. Corporation will be liable for income taxes, so consultation with a Mexican accountant is recommended.
7) How do I ensure proper registry of the property?
To guarantee proper registry always use a Notary Pubic and make sure you do ALL of the following: an official appraisal of the land, notarized bank instructions, obtain a property tax certificate and a no-lean certificate.Sellers Capital Gain tax and Buyer's Acquisition tax must be paid and make sure the transferring rights from the Bank to the Beneficiary are registered and stamped by the Treasury office and the Public Registry.