How To Buy Property In Mexico
There are two ways for foreigners to purchase property in Mexico. The following is a simple description of the process and should not be taken as legal advice. It is important to have help making the right buying decision for you. At Mundaca Real Estate we can assist our buyers with referrals to experienced attorneys and notaries to make your buying experience as simple as possible.
The Fideicomiso is a beneficial bank trust established through a Mexican bank to purchase real estate anywhere in Mexico, including the Restricted Zone. Your attorney will contact a Mexican bank to act as a trustee on your behalf. The bank obtains a permit from the Ministry of Foreign Affairs to acquire the chosen property in trust. The Fideicomiso may be established for a maximum of 50 years and can be automatically renewed for another 50 years.
The bank becomes the legal owner of the property for the exclusive use of the buyer/beneficiary who has all the benefits of a direct owner, including the ability to lease or transfer his/her rights to the property to a third party or a pre-appointed heir. During this period, the foreigner is considered a Mexican national.
The bank trustee is responsible to the beneficiary to ensure the fulfillment of the trust, assuming full technical, legal, and administrative supervision is to protect the interests of the beneficiary.
A minimum of two shareholders are required to form a corporation, Both can be foreigners or companies.
The corporation will need an accountant to file regular monthly reports with the governments as well as handling any tax liabilities.
A Mexican attorney will handle the preparation and sending of notarized and apostilled documents, bylaws, and powers in the case of a corporation. The attorney will confirm the corporate name, draw up the bylaws, put together required powers and translated documents, represent the foreign shareholders (companies or persons) at the incorporation with the notary and obtain the federal taxpayer number (RFC) immediately after the incorporation.