Is it true that you can't own property but can lease for 99 years in Mexico?
Yes, this is true. Under Mexican law, foreigners are not allowed to own land within 50 kilometers of the coastline or 100 kilometers of the border with the United States and Guatemala, but they can obtain a long-term lease of up to 99 years, known as a fideicomiso.
This is a trust arrangement between a Mexican bank and the foreign buyer, where the bank legally owns the property and the buyer has the full use and enjoyment of it for the duration of the lease.
Advantages of a fideicomiso:
- Grants foreigners the ability to enjoy property ownership rights in restricted zones.
- Relatively easy and straightforward process.
- Secure and legally protected.
Disadvantages of a fideicomiso:
- Annual maintenance fees are required.
- The property cannot be passed on to heirs unless they are Mexican citizens.
- There is a risk of losing the property if the lease is not renewed.
Related Questions:
What are the restrictions on foreign property ownership in Mexico?
Foreigners cannot own land within 50 kilometers of the coastline or 100 kilometers of the border with the United States and Guatemala.
What documents are required to obtain a fideicomiso?
Passport, proof of identity, proof of funds, and legal representation.
What is the cost of a fideicomiso?
It varies depending on the size and location of the property, as well as the bank's fees.
Can foreigners obtain a mortgage on a property in Mexico?
Yes, but only through Mexican banks and with certain restrictions.
What are the tax implications of owning a property in Mexico under a fideicomiso?
Property taxes are paid annually, and there may be capital gains tax on the sale of the property.
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