Can Americans buy property in Mexico?

Do you want to buy a property in Mexico as a US citizen? We know that buying a property in a tourist area like the Riviera Maya is a good investment, but it is essential that you know the real estate laws of Mexico to make an informed decision. In this way, you can ensure that your investment is successful and hassle-free.

Mexico is a popular destination for Americans looking to buy properties abroad, especially in the beautiful Riviera Maya. In this article, you will find essential information about the laws for buying properties in Mexico as a US citizen, the purchasing procedures, and some practical tips for making a successful investment. Keep reading and don't miss out on this valuable information!

Mexico real estate law

The good news is that Americans can buy properties in the Riviera Maya! However, there are some restrictions you should be aware of:

According to the Mexican Constitution, foreigners cannot directly own properties within 50 kilometers (31 miles) of the Mexican coastline and 100 kilometers (62 miles) of international borders, but don't worry! There are legal structures that allow you to have properties in this zone indirectly. And the best part is that we'll tell you how you can meet all the requirements established by Mexico real estate law.

How to buy property in mexico? Riviera Maya

There are two main options for foreigners who want to buy properties in the Riviera Maya: the bank trust (fideicomiso bancario) and the formation of a Mexican corporation.

The Fideicomiso (Bank Trust)

The bank trust is a legal agreement between the foreign buyer, a Mexican bank, and the seller. The bank acts as the trustee and holds the title to the property on behalf of the foreign buyer, who retains all property rights, including the ability to sell, rent, or develop the property.

The process of purchasing a bank trust includes the following steps:

• Select a reputable Mexican bank
• Provide identification, proof of address, and financial statements
• Work with a notary public and a Mexican attorney to draft the trust agreement
• Obtain a permit from Mexico's Ministry of Foreign Affairs
• Pay the required fees

Bank trusts are safe and legal, and they allow foreign buyers to own properties in Mexico while complying with laws and regulations. Bank trusts typically have a duration of 50 years and can be renewable. Annual fees apply to maintain the bank trust, and property taxes are the responsibility of the foreign owner.

Forming a Mexican Corporation

On the other hand, an option for foreign investors interested in doing business or engaging in commercial activities in the area is to form a Mexican corporation. This legal entity in Mexico would own the property, while the foreign investor would own shares in the corporation.

The process for forming a Mexican corporation includes the following steps:

• Determine the type of corporation (S.A. de C.V. or S. de R.L. de C.V.)
• Register the corporation with the Mexican Public Registry of Commerce
• Obtain a tax identification number (RFC)
• Open a corporate bank account
• Comply with all relevant regulations and reporting requirements

It is important to note that owning a property through a corporation may have tax implications both in Mexico and in the investor's country of origin. Therefore, it is crucial to consult with a tax professional who is familiar with international taxation.

Fideicomiso vs. Mexican Corporation: Differences for Foreign Property Ownership.

To help you make an informed decision, we have created a table comparing the main features of bank trusts and Mexican corporations. However, remember that before making a final decision, it is essential to consult with legal and tax professionals to ensure that the structure you choose fits your property needs and objectives.

Tips for effectively buying properties in the Riviera Maya

To effectively buy properties in the Riviera Maya, it is recommended to follow some practical tips:

1. Seek advice from a lawyer or professional real estate agent. A professional with experience in the local market can help guide the buyer through the entire purchasing process, ensuring all legal and financial details are taken into account.
2. Work with a reputable notary public, as they play a crucial role in the property transaction process. Notaries are responsible for ensuring the process is carried out correctly.
3. Conduct thorough research. Buyers should thoroughly research the property and location before committing to buy. This can include verifying the property title, ensuring there are no liens or encumbrances, and verifying compliance with zoning and environmental regulations.
4. Understand the costs associated with the property. In addition to the purchase price, buyers should consider additional costs such as taxes, legal fees, and maintenance costs.
5. Learn the local language and culture. By learning the local language and culture, buyers can make more meaningful connections with the local community and have a better understanding of the real estate purchasing process in Mexico.

Benefits of buying properties in Mexico

Buying properties in Mexico is a good investment option for Americans, as prices are usually lower than in the United States, allowing you to acquire a quality property at an affordable price. In the Riviera Maya specifically, you will find a wide variety of real estate investment opportunities, from properties for generating income through vacation rentals to commercial properties.

But that's not all, investing in properties in Mexico is also a smart way to diversify your investment portfolio. By investing in real estate in another country, you can protect your assets from economic and political fluctuations in your home country. So consider this option to grow your wealth!

It may interest you: What is special about Riviera Maya?

Conclusion 

The Riviera Maya is an excellent investment opportunity if you're thinking of buying properties in Mexico! However, to make an informed decision, it's essential to understand the laws and regulations applicable to foreigners who want to acquire properties in this area. For this reason, we recommend seeking proper advice from professionals, either through a bank trust or the formation of a Mexican corporation.

At eRealty, we work with lawyers belonging to one of Mexico's most prestigious law firms, who will provide you with the professional advice you need to successfully buy a property in Mexico. Don't hesitate to contact us for more detailed information and personalized guidance. At eRealty, we make your dream of owning a property in a place full of culture and natural beauty like the Riviera Maya a reality!