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With the enactment of the North American Free Trade Agreement (N.A.F.T.A.), and with the changes in Mexican Law, it is now safe and entirely possible for foreigners to own land in Mexico's restricted zone. The instrument used is called a Fidiecomiso or a trust that is renewable every 50 years. Modeled after the system in Monaco, it gives the buyer (beneficiary of the trust) complete control over their property with all the rights of a native landowner. You can buy, sell, rent, improve, and build within the codes and guidelines of the local jurisdictions.
What is Mexico’s Federal, or Restricted Zone? The Mexican constitution allows that the area within 100 kilometers (about 60 miles) of any border and 50 kilometers (about 30 miles) of any coastline, waterway or riverbank is a federal, or “restricted zone.” What that means is that a non-national, or non-Mexican, is not allowed to buy or own this area except through a bank trust. Last mid-century the government created a system wherein a fideicomiso is set up to acquire property in these areas.
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What actually is a fideicomiso? (fi-day-co-mi-so) The fideicomiso is the legal format that allows non-nationals to purchase and own real estate in any restricted zone as outlined above. This recorded document is a contract created in conjunction with a bank for a purchaser and/or beneficiary. Similar to trusts in the U.S. and Canada for holding real estate property, it is different than fee simple ownership only in form. The first step in establishing the fideicomiso, or trust, is securing a permit from the Secretary of Foreign Relations. Issued for fifty years, this trust may be renewed for another fifty years. This form of ownership allows real property to be transferred for the sole purpose of the beneficiary. Contrary to misconceptions, the fideicomiso is not a lease. Property can be transferred to whomever is chosen by the beneficiary. With Title Insurance Now Widely Available Your Investment is 100% safe. Minimum Requirements For Financing
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