Ownership In Mexico

Can I own property in Mexico?

I thought there were only 99 year leases.

Since 1994 foreigners have been legally permitted to own property in Mexico.  If you own property outside of the restricted zone (50 kilometers – about 31 miles – from the coastline or 100 kilometers about 62 miles from the border) you are allowed to own property fee simple.  For all intents and purposes, fee simple ownership of property in Mexico grants you nearly the same bundle of rights you receive when you purchase property in the USA.

To acquire property in the restricted zone you must either engage a Mexican bank to execute and hold title to the property for you with an instrument known as a fideicomiso or create a Foreign Owned Mexican Corporation.

The fideicomiso creates a trust agreement for the benefit of the foreign buyer.  The bank has a fiduciary obligation to the owner.  The owner retains all the benefits of ownership and has the legal right to lease, sell, and will the property to their heirs.

Fideicomisos are currently 50-year documents.  They can be renewed at the end of the 50-year term for an additional 50 years.  There is no limit to the number of times the fideicomiso can be renewed.

Finally, the fideicomiso does offer some additional comfort to those foreigners that fear that the Mexican Government could nationalize and claim all property not currently owned by a Mexican National (a somewhat irrational fear when you consider the global repercussions to Mexico).

The major Mexican Banks hold literally hundreds of thousands of fideicomisos and receive substantial annual income from them.  Recently, many of the largest banks in Mexico have merged or are in partnership with international banking corporations in fact over 80% of Mexican banks are now foreign owned: Citi-group recently merged with a local Mexican bank and the surviving entity is now known as Banamex and Bank of America just purchased 25% of Santander Central Hispano Bank.

The stockholders of these banking concerns are international.  If the Mexican government were to remand or take property from the banks, denying them income, and legally placing them in fiduciary default to hundreds of thousands of clients, it would cause an international incident.

The El Dorado Ranch Master Trust is held by HSBC, and Stewart Title insures the titles to our properties.  We can provide you a copy of the title report upon request.

Shirlene Reeves assisted us with purchasing
our San Felipe property. She made it simple, clear and easy. We’re so happy. – Ed & Julie D.