Selling Property in Mexico to Foreign Buyers

Leases and property ownership in Mexico are open to foreigners. Nonetheless, there are a few rules to follow while making a property investment: If you are thinking of selling your home in Mexico to overseas investors here are some things to consider.

 

Article 27 of the Constitution of Mexico establishes that the Mexican Nation owns all land and water within its borders and that the Mexican Government is responsible for managing the transfer of property rights to persons.

 

Section I of the aforementioned article provides that only Mexican individuals and companies may acquire the dominion of land and water, but it also gives the State the power to grant the same right to foreigners, provided that the foreigners agree in front of the Ministry of Foreign Relations to treat themselves as Mexican nationals with respect to the acquired property and not to invoke the protection of their country of origin with respect to the acquired property. In the event of a breach of the covenant, the Nation would be entitled to reclaim the property in question.

 

Article 27 of the Constitution of Mexico defines the “restricted zone” as an area where foreigners are prohibited from owning land outright. A region between an international border and the shore, up to a distance of 100 kilometres (62 miles) inland and 50 kilometres (31 miles) out to sea.

 

Real estate purchased in this “restricted zone” for residential use by a foreign individual or company, or a Mexican company controlled 100% by a foreign entity, must be financed through a trust fund for a period of fifty years. In a trust fund arrangement, the bank has legal title to the property but the non-U.S. citizen has all the rights to live in, sell, and inherit the property. All property-related actions, however, require the bank’s prior knowledge and approval.

 

As a side note, non-residential property in the “restricted zone” can be owned directly by Mexican enterprises with 100% foreign capital.

 

When seeking to purchase land for agricultural, livestock, or forestry interests, you should also be aware of the following regulations: For this reason, no foreign company may acquire real estate, and non-citizens must adhere to size restrictions on their land holdings.

 

When the purchase price of a home is less than 365 times the national minimum wage, it must be finalised in the presence of a public notary, judge, or property registry officer and two witnesses. When dealing with larger sums of money, it’s best to get the deal notarized and recorded in a deed. Both parties in a real estate transaction are responsible for paying any applicable taxes.

 

The buyer might be an individual or a legally authorised representative (power of attorney valid according to Mexican laws).

 

Foreigners are required to obtain a visitors visa even though there is no limitation for any migrant status to purchase property (save for transmigrates after purchasing property or acquiring rights to a property in the “restricted zone”).

 

The Ministry of Foreign Affairs (Secretara de Relaciones Exteriores, Flores Magon 1 anexo, Tlatelolco, México, D.F.) or one of its representatives in the States of the Republic is where one may go to apply for a visa. By signing this document, the alien agrees to be treated as a citizen of Mexico for all purposes related to the property, waives the right to seek diplomatic protection from any foreign government, and irrevocably submits to the exclusive jurisdiction of the Mexican courts.

 

Before committing to purchase, be sure there is no mortgage on the property and that all real estate taxes and water contribution fees have been paid. Contact a lawyer if you need any further help with this. Sell Property in Mexico Fast Online.

 

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