Big Changes on the Horizon for Americans Buying Mexico Real Estate
go to original
May 3, 2013

On April 3 this year, the Parliamentary Group of the Institutional Revolutionary Party (PRI) and the Parliamentary Group of the National Action Party (PAN) submitted a bill proposing to amend section I of Article 27 of the Mexican Constitution to allow foreigners to own land.

Presently, Americans can own property in Mexico through a Fideicomiso or Bank Trust. Any foreigner can institute a Fideicomiso (the equivalent to an American beneficial trust) through a Mexican bank in order to purchase real estate anywhere in Mexico, including what is commonly called the Restricted Zone. To do so, the buyer requests a Mexican bank of his/her choice to act as a trustee on his/her behalf. This conveys the same bundle of rights that holding property “fee simple” does in the United States. You can will it, lease it, sell it, rent it and improve upon on it… It’s absolute. It’s irrevocable. It’s in perpetuity. And that is the definition of ownership. While this is a secure way to own land, there are changes on the horizon to make ownership even more simple.

This reform intends to allow foreigners to purchase properties directly, replacing the current structure which requires a trust agreement, regarding the land in the so-called “Restricted Zone”, which comprises a 100-km stretch along the borders, and a 50-km stretch along the beaches, providing that such land is given residential uses only. The purpose of this reform is to eliminate intermediaries and the participation of trustees in the process, thus reducing the costs of the transactions involved and giving legal certainty while encouraging foreign investments.

Read the rest at Virtual-Strategy Magazine

We invite you to add your charity or supporting organizations' news stories and coming events to PVAngels so we can share them with the world. Do it now!

You Can Make a Difference

Coronavirus - How You Can HelpIf you would like to donate directly to the non-profits in Puerto Vallarta and Riviera Nayarit, here are some suggestions you may want to consider to help our local communities in this time of greatest need.

Coronavirus - How You Can Help

Local News

Discover Vallarta-Nayarit

Banderas Bay offers 34 miles of incomparable coastline in the states of Jalisco and Nayarit, and is home to Puerto Vallarta and Riviera Nayarit's many great destinations.