Owning in Mexico

THE TWO WAYS MOST FOREIGNERS TITLE PROPERTY IN MX

1. FIDEICOMISO - SINGLE PROPERTY PURCHASE

Opting for a Fideicomiso is the prevailing choice among foreigners acquiring property in Mexico due to its similarity to a “real estate trust.” A Fideicomiso de Zona Restringida (a Real Estate Trust of a Restricted Zone). The Fideicomiso deed outlines the Purchaser’s (Trustee’s) full responsibility for property use, administration, maintenance, civil liability, rental income, mortgage loans, and sales proceeds, emphasizing that the trust institution bears no responsibility. A notable advantage of a Fideicomiso is its testamentary function, allowing you to designate beneficiaries who inherit the trust by presenting a death certificate and a brief request letter. Initial Fideicomiso bank fees, covering permits, a yearly fee in advance, and legal expenses, generally range from $2,000 to $2,500 USD. These fees are in addition to Buyer closing costs and the process typically takes two to three months to formalize.

2. MEXICAN CORPORATION - MULTIPLE PROPERTY PURCHASES

Mexican Corporations are primarily recommended for individuals seeking to establish a business presence in Mexico. Formation of a Mexican corporation, achievable within two weeks, requires a minimum of two partners (both can be foreigners; no Mexican citizenship necessary), incurring a maximum cost of $1,500 USD. This structure allows property acquisition as if you were a Mexican national. All transactions conducted through a Mexican Corporation involve payments via checks or wire transfers from the corporate bank account. Opting for a corporation is particularly advantageous for those planning to start a business or acquire property for non-residential purposes. It not only provides potential savings on income tax but also establishes a legal source of income in the country.

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