FAQ – Frequently Asked Questions

Real Estate in Mexico

 

Q: Can foreigners buy real estate in Mexico?
A: Yes, foreigners can legally purchase property in Mexico. However, properties located in the restricted zone—within 50 km (31 miles) of the coast or 100 km (62 miles) of the borders—must be purchased through a fideicomiso (bank trust) or a Mexican corporation.

 

Q: What is the restricted zone in Mexico?
A: The restricted zone refers to property within 50 km of the coastline or 100 km of international borders. Foreigners cannot hold direct title in these areas but can legally purchase through a fideicomiso or a corporation

 

Q: What is a fideicomiso?
A: A fideicomiso is a trust agreement between a foreign buyer, a Mexican bank, and the seller. The bank holds legal title to the property on behalf of the foreign buyer, who remains the beneficiary with full rights to sell, lease, transfer, or inherit the property.

 

Q: How long does it take to complete a fideicomiso?
A: The process generally takes 6 to 8 weeks, depending on the notary, bank, and whether all documents are in order.

 

Q: What are some of the details of the fideicomiso?
A: A fideicomiso typically lasts 50 years and can be renewed indefinitely. The beneficiary (the foreign buyer) retains full control of the property, including the right to sell, rent, or pass it on to heirs.

 

Q: Do I need to be a resident to buy property in Mexico?
A: No. Foreigners can purchase property in Mexico regardless of their immigration status. Residency is not required.

 

Q: Can I purchase property through a Mexican Corporation?
A: Yes, foreigners may form a Mexican corporation to buy property, especially for commercial or rental purposes. This is common when purchasing multiple investment properties.

 

Q: What are the benefits of creating a corporation?
A: Owning property through a corporation allows foreigners to purchase property in restricted zones without a fideicomiso, and provides more flexibility for business activities such as renting or developing real estate.

 

Q: Can foreigners set up a Mexican corporation?
A: Yes. Foreigners can establish a Mexican corporation with at least two shareholders, who may both be foreigners.

 

Q: What is the time frame to set up a Mexican corporation?
A: Creating a corporation typically takes 2–4 weeks, depending on paperwork and notary availability.

 

Q: How many properties can be obtained through a Mexican corporation?
A: A corporation can hold unlimited properties, making it ideal for investors.

 

Q: Are there any disadvantages of setting up a Mexican corporation?
A: Yes. A corporation requires annual tax filings and accounting services, even if it is not actively doing business. This adds ongoing costs.

 

Q: What should I do before I purchase property?
A: Buyers should conduct due diligence, which includes verifying title, checking for liens or debts, ensuring permits are valid, and confirming the seller’s legal authority to sell. Hiring a lawyer is highly recommended.

 

Q: What is the role of the notary public in Mexico?
A: In Mexico, notaries are highly trained lawyers appointed by the government. They are responsible for certifying property transfers, ensuring taxes are paid, and recording deeds in the Public Registry.

 

Q: Why do I need a lawyer to purchase property?
A: A lawyer protects your interests, conducts due diligence, drafts contracts, and ensures the transaction complies with Mexican law. Unlike agents or developers, your lawyer works exclusively for you.

 

Q: Should I use a settlement company or a lawyer during my real estate transaction?
A: Always choose a lawyer. While settlement companies can assist with logistics, they do not provide legal protection. Only a licensed attorney can safeguard your rights.

 

Q: Do I need to purchase title insurance?
A: Title insurance is optional but recommended, especially for buyers financing property or unfamiliar with Mexican real estate laws. Your lawyer can help determine if it is necessary.

 

Q: Can my real estate agent or the developer hold my funds in escrow?
A: No. For safety, funds should never be held by agents or developers. Escrow should be managed by a law firm or a trusted third party to ensure transparency.

 

Immigration in Mexico

 

Q: What type of visas are available in Mexico?
A: The most common visas are the Temporary Resident Visa, Permanent Resident Visa, and Visitor Visa (Tourist Card). Each has different requirements and benefits

 

Q: I am retired and would like to relocate to Mexico. Which visa is right for me?
A: Most retirees apply for a Temporary Resident Visa, which is granted based on proof of sufficient income or savings. After four years, it can be converted into Permanent Residency.

 

Q: I would like to work in Mexico. How can I get my work visa?
A: To obtain a Work Visa, you must first secure a job offer from a Mexican employer who is registered with the immigration authorities. The process is then coordinated with both Mexican immigration and your local consulate.

 

Q: Why would a foreigner become a Mexican citizen?
A: Citizenship provides benefits such as the ability to own property in restricted zones without a fideicomiso, obtain a Mexican passport, and enjoy full civic rights.

 

Q: I have residency in Mexico; can I invite my family to live here?
A: Yes. Residency holders may apply for family reunification visas for their spouse, children, or parents, allowing them to legally live in Mexico.

 

Additional Helpful FAQs

 

Q: Do I need a Mexican will if I own property in Mexico?
A: Yes. A Mexican will ensures your property is transferred smoothly to heirs under local law. Without one, the probate process can be lengthy and complicated.

 

Q: Can foreigners start a business in Mexico?
A: Yes. Foreigners can open businesses in Mexico either as individuals with residency or through a corporation. A lawyer can help with incorporation, tax registration, and compliance.

 

Q: What should I do if I am arrested in Mexico?
A: Immediately contact a lawyer. Foreigners have the right to legal representation and to notify their consulate. Do not sign any documents without your attorney present.

 

Q: Are prenuptial agreements valid in Mexico?
A: Yes. Prenuptial agreements are enforceable under Mexican law and are recommended to protect assets in case of divorce.

 

Q: Is mediation available for family disputes in Mexico?
A: Yes. Mediation is often encouraged before court proceedings and can save time, cost, and emotional stress.