The answer is yes, as a foreigner you can buy property on the coast of our Mexican beaches. Although foreigners may not have direct dominion over lands and waters, in a 100 km strip along the borders and 50 km on the beaches. This includes real estate, parcels or ejido lands. These are called the restricted zone.
There are many factors why foreigners prefer to invest in Mexico because it is easier and cheaper for them to acquire a property here, obtain a permanent visa and a good salary.
Mexico is a real estate paradise thanks to its beautiful beach destinations and fascinating cities full of history and culture, this is why it is an excellent option for them to invest, either to retire or to convert them into a vacation rental home.
We have researched for you, the Requirements for a foreigner to buy in Mexico with this information, you will have no doubt that the best option for you is to invest in Mexico.
Requirements for a foreigner to buy in Mexico
A foreigner can buy a property even in the restricted zone by means of a “trust” or by incorporating a Mexican company, if your plan is to acquire more than one property then I recommend you to choose the incorporation of the company as it has greater tax benefits for you.
Real estate trust
A real estate trust is one that invests mainly in real estate assets intended for rent, its constitution is defined by a patrimony integrated by the contribution of individuals or legal entities that participate in the fund.
In a real estate trust, a person delivers his assets to the trustee so that the latter can manage them for a previously established period of time.
What is the Calvo Clause?
The trust is authorized by a permit issued by the Mexican Ministry of Foreign Affairs (Secretaria de Relaciones Exteriores), known as the clausula calvo.
The purpose of the clausula calvo is not to invoke the protection of their governments to resolve disputes related to the property if it is at risk of being lost or not complied as agreed.
What is the difference between a sale and a trust(fideicomiso)?
The difference lies in the participation of the trust institution, which will manage the registered property for the sole and exclusive benefit and use of the person who has purchased the property.
The greatest benefit is that the trust has a clause for inheritance purposes, which saves procedures and inconveniences for family members or beneficiaries in the event of the death of the owner.
Do foreigners pay taxes?
As we previously mentioned, foreigners have fiscal benefits when acquiring a property in Mexico, but at the same time they obtain fiscal obligations, so when buying a property they must pay the real estate acquisition tax (ISAI) and the value added tax (IVA), without forgetting that they must also consider the notary expenses that this purchase accrues.
Now you know the necessary information to use your rights as a foreigner as stated in the Mexican Constitution, if you are interested in acquiring a property know the properties we have for sale here.
