First and foremost, it’s important to establish once and for all that YES, foreigners can legally own and buy property in Mexico, even in the “Restricted Zone” (see more on this below). In fact, changes in the constitution over the years have made it easier than ever for foreigners to buy real estate in Mexico and right now is a great time to buy! In these areas, “restricted” is simply referring to the Mexican federal government’s requirement for foreign buyers to set up a bank trust known as a fideicomiso in order to hold the title.
What and Where is the Restricted Zone in Mexico?
According to the Mexican constitution, the Restricted Zone includes property within 64 miles of any international border and within 32 miles of the coast. In these areas, “restricted” is simply referring to the rules governing real estate transactions that involve foreign buyers.
What is a Fideicomiso?
A fideicomiso is a type of bank trust that gives the beneficiary absolute control of the property. You can choose to enjoy the land, lease it, make improvements, mortgage the property, sell it, designate the property for inheritance or give it away. In other words, your property is held under a fiduciary that is managed by a bank in Mexico on your behalf, and you get to call all the shots.