Can a Foreigner Buy Real Estate in Mexico?

By Shawn Bandick

The Mexican Real Estate Trust, What’s That About?       

Do I have to have my property in a Mexican’s name?  As a foreigner I can’t own property in Mexico right?  I understand we can only lease property in Mexico, what happens when the lease runs out?

Wow… There’s a lot of outdated information going around still. 

Buying property in Mexico is not that difficult. Just look at the boom in foreign investment over the last several years. Many people are confused by the idea of buying property and holding it in a trust. Well, real estate trusts are not a new idea.

In fact real estate trusts have been used in Europe and the USA for years. The objective of the trust is to provide a safe and easy way for foreigners to purchase their real estate in Mexico. That’s it. It’s simple.

Here’s an example:

When we start a business we incorporate the company, right? Why do we incorporate?

We incorporate so the company takes the brunt of any legal challenges which may occur. The real estate trust is the same thing. You buy the property. It is held in the trust. You are the owner/beneficiary of the trust and the trust is set up and administered by the bank according to your direction. Should you be sued or have any legal challenges, here or abroad your property can not be touched. It is a true trust.

It currently costs about $2600 USD to set up, register, and administrate the trust for the first year. This is not just bank charges it is government registration fees as well. The bank will charge about $500 USD per year for administration. Shop around a bit here as this fee varies bank to bank. By the way let’s take care of another myth. You do not lose your property when the trust expires in fifty years. You or your family simply renew the trust.

Who is investing in Mexico? I’ve met people from all over the world investing here. Europeans, Americans, Canadians, (that would be me) just look around, what a great mix of people we have here in Playa. That is what makes it great.

Also in Mexico a foreigner can also hold their real estate in a Mexican corporation, but that will have to be another article.

Make it a great Real Estate Day!

Shawn Bandick
One Stop Real Estate, Playa del Carmen
shawn@onestopmc.com