| Acquisition
of Land, Houses or Condominiums Located in the State of Quintana
Roo, Mexico by Foreign Individuals or Companies
For historical reasons, Mexican law establishes restrictions
on foreign individuals or companies that acquire real estate within
a 100 kilometer (60 mile) strip of the land along the country’s
borders and 50 kilometers (30 miles) from coastal areas. However,
there are several legal mechanisms through which these foreigners
may use and dispose of this real estate as their own property
with the minor limitations and procedures that are described as
follows:
Trust
Foreign individuals or companies may hold property through a trust
contract signed before a Mexican notary public, designating a
Mexican credit institution such as a Bank, Insurance Company or
Bond Company as Trustee, who will hold title to the real estate
for the duration of the Trust: 20, 30, 50 or even 99 years. These
trusts are indefinitely renewable for similar periods of time,
if you so wish. The foreign individual or company is designated
as the trust beneficiary with practically all the attributes of
an owner since they may use the property without limit, rent it
or even sell it by instructions issued to the trustee and the
property is immediately conveyed to the new owner.
Fees must be paid to the Trustee to set up the trust and the
Trustee also charges yearly administration fees, which in practice
are not very high, but depend on the property’s value.
Condominiums and villas are sold through this legal figure in
what is known as the fractional system, by which up to 12 persons
may acquire a property for life, and may even designate substitute
trust beneficiaries as their heirs.
Trust Costs
- Acceptance of the Trust by the banking institution $450*
- Annual fees $550*
- Authorization from the Secretary of Foreign Affairs $1,415*
- Filling the agreement with the National Registry of Foreign
Affairs $335*
*Aproximate prices.
Mexican Company
Under the terms of recent reforms in legislation regarding commercial
entities, a Mexican corporation with 100% foreign capital may
acquire fee simple title to property in the restricted coastal
areas, especially in the state of Quintana Roo. The partners of
said corporations have unlimited use of the property and may rent
or sell it through the corporation.
Atty.-at-Law
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