LAND + PEACE = TRANQUILITY

FOREIGN OWNERSHIP OF LAND IN MEXICO

The Mexican Constitution states that foreign ownership of property in Mexico within 50 kilometers from the coast can be achieved in one of the following ways:

      1. Through a fiduciary or what is known as a “Fideicomiso,” the equivalent of a US beneficiary trust
      2. Through the establishment of a Mexican corporation
FIDEICOMISO

A fideicomiso is a bank trust, which is administered on your behalf at a Mexican bank chosen by you . The bank then serves as the trustee while you serve as the beneficiary of the trust.  Just as with a beneficiary of a living trust in the United States, you have complete authority over it, exercising your use of the property and making all relevant decisions including the sale of the property.

Residential properties outside the restricted zone or beyond 50 km of the coastline do not require a fideicomiso for a foreign acquisition.  The Mexican constitution was initially drafted in order to protect loss of land, which resulted in the restricted zone.  Afterwards, Mexico then created the fideicomiso in order to promote foreign investment.

The trust established through the fideicomiso does not become part of the bank’s assets.  Instead, the bank simply becomes the administrator.  As a result, the trust cannot get tied up in any legality issues that may arise with the bank or have a lien placed against it.  The trust is established and renewed in 50 year periods with a guarantee of renewal in perpetuity.  The cost for the renewal is approximately $500 USD.

CORPORATION

If your intentions are to purchase the property and conduct it as a business, then purchasing through a Mexican corporation may be your best option.  Common types of corporations include a limited liability (LLC) and a limited liability partnership (LLP).  Tax implications in both the US and Mexico can vary between the types of corporations and it is advised that you speak with your attorney or accountant (in both the US and Mexico) to gain a better understanding.

Foreign ownership of property in Mexico is established through the creation of a Mexican corporation.  Since 1995, foreigners have been able to establish and own Mexican corporations.  In order to establish a foreign corporation in Mexico, two or more individual investors are required.  In addition, said investors, when combined, must control 100% of the corporation.  None of the investors to the corporation are required to be Mexican.  A foreign corporation in Mexico has the legal authority to purchase property, which includes the restricted zone.

A LOOK INTO YOUR FUTURE

CURRENT STATE & SALE OF THIS PROPERTY

This property is a fully deeded and titled property in Mexico, and owned by a Mexican corporation.  In turn, the Mexican corporation is fully owned by a Washington State LLC for the ease in selling and transferring the property. The current structure was set up and designed by both Mexican and Washington attorneys within the laws of Mexico and the United States.

The purchase of this property will be a the purchase of the Washington State LLC or the Mexican corporation; dependent upon the buyer being a Mexican citizen or non-Mexican citizen to assure ease in any transfer.

PRICING

For detailed pricing or for additional information, please fill out the contact form on the contact page.  Please specify if you are interested in the beachfront property, the adjacent back property, or purchasing both properties together.