If you’re taking into consideration investing into real estate in Mexico, you may be wondering if it’s possible as a foreigner. The good news is that, absolutely yes, you can invest in Mexico as a foreigner! However, there are some important details you need to solve before you jump in. So before you imagine yourself in an incredible condo in the Mayan Jungle, enjoying a nice coconut ice cream at the amazing beach of Acapulco or taking a glass of wine with the amazing view of the colonial town of San Miguel, we are going to show you the most important steps for being a little bit closer of your dream real estate purchase in Mexico.
The main things you need to take into consideration are:
Trust
One important thing to note is that as a foreigner, you can’t own property outright in certain restricted areas of Mexico, such as 50 kilometers of the coastal zone or the border. Instead, you’ll need to set up a trust. So you might be wondering, what does “trust” means? Well is something very important for you to know, so the trumpets please…. Is an essential legal agreement that allows a Mexican bank to hold the title to the property on your behalf. This trust gives you all the rights of ownership, including the ability to sell or rent the property, but it ensures that the property remains under Mexican control. So this is the way to roll here in the real estate world in Mexico if you are a foreigner.
Restricted Area
As mentioned, certain areas of Mexico are designated as restricted areas for foreign ownership. These areas are typically near the coast, as well as near the border with the United States. So yes, you have to look into the small letters on everything, not just on a contract. However, even within these areas, there may be some exceptions that allow for foreign ownership, of course if you bring Tom Brady with you there will not be any trouble. It’s important to work with an attorney or contact the real estate agency you are interested in and se if they have any attorney that can help with the process. So as you see, you need to have all local regulations stablished and taking control of.
Can I Resell My Property or Rent it Out?
Yes! Once you have a trust (go read the second paragraph if you don’t know what a trust is) in place, you have all the same rights as a Mexican citizen when it comes to selling or renting out your property. You can also transfer the trust to another foreigner if you decide to sell the property. This is an area the investors are going to be interested in. Or well, if you are staying at Selva Norte, with your trust already set up you will be more than able to rent the special amenity that this real estate development offers you… the Lock-Off Room.
If you don’t know about this amenity, please contact us: https://api.whatsapp.com/send?phone=529841407596
What Process is Required for a Purchase of Real Estate in Mexico?
The process for purchasing real estate in Mexico is similar to that in other countries. First, you’ll need to find a property that meets your needs and budget, and work with a real estate agent to make an offer (I know this is very general, but better to say it than to leave it behind). Some documents you’ll need to purchase real estate in Mexico are the following:
- Property title
- Property bill
- Water bill
- Marriage certificate (If you are married, of course)
- Appraisal to a notary public (when applicable)
- And, well I’m sorry to tell you that you will not get rid of paying taxes to the Mexican Government
Once your offer is accepted, you’ll need to ask your real estate agency if they have any attorney working with them to review all the process and ensure that all necessary paperwork is in order. Some real estate agencies that will help you in all this process, are:
- Olympia Residencial, Acapulco
- VidaMar Residencial, Acapulco
- La Noria, San Miguel de Allende
- Selva Norte, Tulum
- Distrito La Selva, Tulum
And last but not least, you’ll need to obtain a Mexican tax ID number and open a bank account in Mexico. The Mexican tax ID number is commonly known as “RFC” for Mexicans, and well Finally, you’ll need to sign the purchase agreement and transfer funds to complete the transaction.
Investing in real estate in Mexico can be a great way to duplicate your income and enjoy all the beautiful stuff our country has to offer. Be sure to contact a good real estate agency that is available to help with all the process and paperwork you need to have before owning a property in any part of the Mexican Republic.
For more blogs like this, visit: The A to Z of owning a vacation house in Mexico
