Real Estate Investment in Mexico

[Elsa Hernandez]

Hi! Does anyone know if there are any restrictions for Americans, wanting to buy Real Estate in Mexico?

Thank you!

[Mike Lambert]

There are no restrictions for foreigners to buy real estate in Mexico. However, if they want to buy within 32 miles of the coast or 62 miles from the international borders (which they do most of the time for obvious reasons), they have to own through a bank trust (fideicomiso) or a Mexican corporation. The great thing about the fideicomiso is that it gives you free asset protection given that the property is in the name of the bank, who, as trustee, has absolutely no power.

@Bruce Lynn

Properties in Spain or Portugal are freehold for nationals and foreigners alike. These stories are fake urban legends.

There is hardly chance that Mexico will do anything to the fideicomiso system, aside from allowing foreigners to own without them one day. It would have devastating consequences for the country's economy and they're not stupid. The current Mexican government is probably the most leftist government Mexico has had since the 1916 revolution. They have done absolutely nothing against foreign investment and they have no plans to do anything of that sort.

There have been stories going the round about people losing their property in Mexico, as in other countries. The Mexican government doesn't expropriate properties owned by foreigners in Mexico. What happens though is that uninformed foreigners buy ejido properties because they're cheaper. They're cheaper for one reason: they don't have a clear property title. I always tell people not to buy ejido property because they're running the risk to be expropriated. That's probably where your Escondido story falls. If, however, you buy a property with clear title, you're fine.

There are a lot of rumours and falsehoods that do the round about foreigners owning property in Mexico. They're invariably spread by people who have never invested in the country and don't know what they're talking about. My advice remain the same: if you want information about investing in Mexico, ask people who are doing it.