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What is a trustee?
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What are the requirements for buying a property in Mexico?
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What fees will the
Trustee charge?
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The Mexican
Constitution states that
foreigners may not own
property within
100kilometers (62 miles)
of the country political
borderline, as well as
within 50 kilometers (31
miles) of its coastline.
The Mexican government,
however, provides a way
to get around this
restriction. The Mexican
Ministry of Foreign
Affairs, allows any
Mexican Bank to
establish a trust for
foreigners. You may own
a property in Mexico for
your own residence, or
for tourist developments
Most foreigners in
Mexico who own coastal
real estate do so
throught a bank trust
called a Fideicomiso. .
This trust is held by
the bank and protects
you as a foreigner
investing in Mexico.
This sort of trust
grants the tittle for a
pieace of propertiy to
the bank (The trustee),
which in turn is obliged
to follow ant
instructions given by
the foreign investor –
you (The beneficiary).
The trust holds the
deeds to the property,
and you and/or other
named persons which you
specify are sole
beneficiaries to the
trust (and therefore the
property). You have full
rights to do whatever
you like with your
property: it can be
developed (in accordance
with local planning
regulations), rented,
leased, sold, or given
away. In other words,
you own the property in
all but name.
The trust enables you to
name a beneficiary upon
your death, and you do
not need to have a
Mexican Will in order
for your wishes in
regard to the trust to
be executed (an
efficient step in the
process).
You do not have to be
resident in Mexico to
own property there, so
there is no need to
qualify for resident
status under immigration
laws in order to have a
property investment in
Mexico.
Owning property througt
a trust deed offers
advantages. First, you
can list more than one
person as beneficiary,
which means, for
example, that a husband
and wife can be ¨co –
owners¨. You can and
should structure this in
such a way if one
partner should die, the
other has immediate,
100% control over the
property.
Second you can list in
¨heir¨. This means that
should both co-own-ers
die, a new beneficiary
is already in place ,a
beneficiary who ,
incidentally, needn`t be
related to the original
co-owners.
For couples, friends who
own a property jointly,
or for couples in a
second marriage with
different childrens,
this is the way to go.
It allows the simple and
easy transfer of control
over the property and
avoids the messiness of
sorting out ownership in
a Mexican court. Plus,
it allows you to avoid
inheritance taxes.
Trust are issued for
renewable 50 year
periods. If you are
purchasing property
currently held in a
trust for the next 50
year period or be
assigned the existing
trust deed. Trusts are
renewable at any time by
simple application. The
fee is determined by a
percentage of your
purchase price, you will
be advised of the amount
of this charge before
you make an offer on a
property it t will
likely cost about $2600
usd for the initial set
up, and maintenance fees
for this kind of trust
are typically $ 400 to $
500 usd per year.
There are other options
for investing in Mexico
, one being the
formation of a Mexican
corporation. This
process is not
complicated and allows
you to sponsor yourself
to work in the country
as well.. Our attorney
is also an expert in
this area and it is our
privilege to offer his
services to you.
Mexican Law on property
ownership is
comprehensive and
provides protection for
the seller and the buyer
in all property
transactions, provided
that the law is
followed, and you ensure
that all necessary
documentation is present
and that the procedures
are adhered to. Your
Notary Public is an
important person in this
process, and he/she will
guide you.
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