Welcome to the latest episode of Q and A with Nick Fong, the broker and founder of Ronival Real Estate in Baja California Sur. In today’s episode, Nick answers the question about whether foreigners can own real estate in Mexico. So if you’re from Canada, the United States, or another country, this video is for you.
If you’re interested in checking out the real estate options in Mexico, especially in one of the great cities within Baja California Sur like Cabo San Lucas or Todos Santos, Nick Fong has your answer. Therefore, continue reading to uncover how you can own real estate in Mexico. If you’re also exploring the region’s high-end communities and inventory, visit Luxury Los Cabos.
Can a foreigner own property in Mexico?
The short answer is “yes!” Indeed, as a foreigner, you may own real estate in Mexico. Either through a Mexican “trust” called a fideicomiso or through a Mexican corporation, if you are from another country, you can easily purchase property in Mexico.
This is not a lease. It’s a purchase – real ownership that you can build, modify, sell, and pass down to your family through a will. As such, you own it indefinitely, according to Mexican law. There is a “term” of the trust, which is 50 years, and the reason for confusion for many people that use the term “lease.” But, every 50 years, for a reasonable fee, that term is renewed by the owner…you.
Requirements to buy real estate in Mexico
Below are the few requirements to follow when you purchase Mexican real estate. And, it isn’t complicated. Your Ronival real-estate agent in Baja Sur will help you through the entire process. So, don’t be vexed! Your attention should lie in finding the right Baja Sur real estate that fits all your needs and desires. For a quick starting point, many buyers begin by browsing top lifestyle areas like Palmilla homes for sale, Pedregal homes for sale, or Puerto Los Cabos homes for sale.
The requirements list:
- First, attain a Mexican Tourist Visa (min. requirement) or a Temporary Residency Visa.
- Then, provide your Passport from the country that you come from.
- Lastly, purchase a fideicomiso, which is a bank trust, held by a Mexican bank in your name.
A Mexican bank will then hold the trust deed for you. And, you’ll become the beneficiary and retain full ownership of that Cabo San Lucas real estate.
That’s all there is to it!
Mexican Temporary Residency Visa
You may purchase real estate in Mexico with a Mexican Tourist Visa, which is obtained at the airport when you enter Mexico. But, if you plan to stay in Mexico, it’s a good idea to obtain a Mexican Temporary Residency Visa.
Here’s the lowdown…
Foreigners who intend to stay in Mexico for more than 180 days must attain their Temporary Residence Visa. First, you must prove your income and show that you can support yourself while living in Mexico. Of course, if you’re an investor, or you already own real estate in Mexico, you probably already qualify for a Temporary Residency Visa.
The Temporary Resident Visa will only be granted for one year when you first obtain it. Then, after the first year, temporary residents may apply for one, two, or three years renewal of their temporary resident card.
Mexican bank trust – fideicomiso
Typically, the average cost is about $2000 USD to set up, and about $500 USD per year to maintain. The cost does NOT vary based on the amount of the purchase of your real estate in Baja Sur.
Within the Mexican Constitution, Article 27 requires that foreigners purchasing residential property in the restricted zone must obtain property rights through a Mexican bank trust, known as a fideicomiso.
This zone is 50km (31 miles) from the coastlines and 100km (62 miles) from the border. And, this type of bank trust is good for 50 years and is renewable thereafter by you or your heirs.
Work With Ronival Real Estate
Ronival Real Estate has helped thousands of buyers and sellers across Los Cabos since 2010. If you’re interested in Cabo Real Estate, our team can assist with everything from showings and negotiations to closing and property management. Have questions? Contact us here or call +52 (624) 227 5766.