OWNING PROPERTY IN MEXICO

Mexican Property Trust (Fideicomiso)

In 1994, amendments to the Constitution permitted foreigners to purchase and own real estate in Mexico located within the "restricted zone," an area defined as the land within 60 miles of a national border and within 30 miles of the Mexican Coast. This Law permitted ownership through a land trust or "Fideicomiso".

A "Fideicomiso" is a Mexican Trust. In this Trust, the Mexican Government issues a permit to a Mexican Bank of your choice, allowing the bank to act as the purchaser for the property. The bank acts as the "Trustee" for the Trust and you are the "Beneficiary" of the Trust. The "Beneficiary" rights are very similar to Living Wills or Estate Trusts in the U.S.

 

 FEES TO SET UP A BANK TRUST

THERE ARE DIFFERENT DOCUMENTS AND PERMITS TO BE OBTAINED AT DIFFERENT OFFICIAL OFFICES. SUCH DOCUMENTS ARE

• A FOREIGN AFFAIR PERMIT
• AN OFFICIAL APPRAISAL
• A NO WATER DEBT CERTIFICATE
• A NO LAND TAXES DEBT CERTIFICATE
• A NO LIEN CERTIFICATE

THE FEES TO PAY TO THE BANK ARE:

• FEE TO SIGN AND ACCEPTING TO HOLD BANK TRUST
• FIRST YEAR ANNUAL BANK TRUST FEE
• INSCRIPTION IN FOREIGN INVESTMENT REGISTER OFFICE

FEES TO PAY AT THE LOCAL GOVERNMENT

• ACQUISITION PROPERTY TAX (CALCULATED BY THE NOTARY WHEN THE PROCESS IS HAPPENING)
• REGISTRATION OF DEED AT PUBLIC REGISTRY (CALCULATED BY THE LOCAL GOVERNMENT AS THE LAST STEP TO COMPLETE THE BANK TRUST)

OTHER FEES

• NOTARY FEES
• IF YOU HIRE A PROFESSIONAL LIKE LA GIGANTA TO SET UP YOUR BANK TRUST

THE ESTIMATED COST TO SET UP A BANK TRUST WITHOUT INCLUDING THE FEES TO PAY AT THE LOCAL GOVERNMENT ARE APROXIMATELY FOR THE SUM OF US$5,133 (THIS AMOUNT INCLUDES THE FEES OF A PROFESSIONAL LIKE LA GIGANTA REAL ESTATE (US$950).  ALL FEES ARE TO BE PAID IN MEXICAN CURRENCY.

The Bank Trust fees are not included in the sale price. The cost for obtaining Bank Trust is on top of the sale price. Estimated figures may change without notice.