Property Ownership in Mexico

Owning property in Mexico is easier than you might think.  Mexico welcomes foreign investment. To that end has made it possible for foreigners to own and enjoy the property, very much as you do back home.  In the Los Cabos area that could not be truer.

Currently, there are two ways in which a non-national can own residential or commercial property.

Fideicomiso | Residential Property

Residential property purchased in the Restricted Zone by a non-national must be held in a bank trust using an instrument called a Fideicomiso. The “Fido” is a Bank Trust that allows a non-Mexican owner the power they need to control their property, very much the same way you would enjoy owning real estate at home,  including selling, renting, making improvements, mortgaging or otherwise enjoying your property. The term of the trust is 50 years with an autmatic renewal for another 49 years. 

Mexican Corporation | Non-Residential Property

Through a Mexican or Foreign-owned corporation, non-nationals may enter a Fee-Simple Title when acquiring a non-residential property. It is important to note that with a Fee-Simple Title you must subject yourself to Mexican law.  You must also register with the Ministry of Foreign Affairs that the property is for non-residential use.  

What is The Restricted Zone?

To understand how you own property in Mexico it is important to know that all Los Cabos property is in the “Restricted Zone”.  The Restricted Zone is defined as all land located within 100 kilometers of any national border and within 50 kilometers of any ocean. The Mexican Constitution also states that no foreigner is allowed to purchase direct title to land within the Restricted Zone.

To encourage foreign investment in the highly desirable areas along the coastline like Los Cabos, Mexico created a Foreign Investment Law. This law allows foreigners to acquire indirect title to land in the Restricted Zone by one of two methods; through a Mexican corporation for non-residential property or through a Bank Trust (Fideicomiso) for residential property.