It’s fun to dream about having a getaway spot in Mexico, whether it’s a lovely condo by the sea, a little cabin somewhere, or whatever… It’s even more fun to do!
In recent years, it has become easier for foreigners to own real estate in Mexico, including Mexican beachfront properties. See below for more information on how this works… property near the ocean is managed differently than other types. But it’s great that we can do it now!
Buying real estate in Mexico is different from the process at home in some ways, so work with an attorney who knows the ropes and speaks English well.
Some tips for buying houses, land, etc. in Mexico.
Mexican real estate is generally paid for in cash or by check. Mortgages are quite rare.
Due in part to the shortage of mortgages, a house can be for sale for quite some time. This could benefit you when buying, and less if you decide to sell.
Mexican title insurance for real estate is much less common than in the US, but you really have to make arrangements to get it.
There is a type of land that you have to be careful of: ejidal land. Ejidos were common lands in the past, and titles can be murky.
If you’re exploring real estate, whether it’s houses, land, condos, or whatever, in a particular area of a Mexican city or state, ask the locals what’s for sale. You may have many options that aren’t listed in real estate offices and don’t even have signs out front. You can find treasures this way, even if your Spanish is pretty basic!
Prices can be higher if the seller knows that a foreigner is interested. So he may pay more than a local, but feel free to bargain. Expected!
Property measurements are often in square meters. To give you an idea, 1 acre is equal to 4,046.86 square meters. One square meter equals 10.7639 square feet.
Buying Mexican real estate near the ocean
As individuals, foreigners cannot own property within 30 miles of the coast or 60 miles from the border. But there are two ways you can legally own Mexican real estate within these regions. Experts say that both methods are safe, when set up correctly.
[1] A bank trust is commonly used for residential real estate, and that is called a fideicomiso in Spanish. The bank “owns” the property but you as the trustee have full control of the real estate, to build, sell, put it in your will and avoid inheritance taxes, etc. You can include more than one trustee, for example, you and your spouse or you and a friend.
Bank trusts are good for 50 years and are renewable. Installation fees are around $500 for this arrangement, and annual fees are about the same. There are regulations on how big the land can be.
[2] You can form a Mexican corporation, but none of the owners can be Mexican. If the land is to be used commercially, this is the way to go. The costs to establish this corporation are several times higher than those of a bank trust. Mexican corporate tax reports need to be filed, which I would ask a Mexican accountant to do for you.
So if you dream of having a house in Mexico, do your homework and go for it! Thousands of foreigners have done it, and many of them are now living at home. You can join them!
