Comprehensive Guide to Buying Property in Mexico for Foreign Investors
Buying Property in Mexico for EU Citizens:
- EU citizens can purchase property in Mexico, but there are special rules for areas close to the coast and borders.
- In these “Restricted Zones” (within 50 km of the coast and 100 km of international borders), you’ll need to use a ‘fideicomiso’ (bank trust) or establish a Mexican corporation for residential properties.
Buying Property for Non-EU Citizens:
- The process is similar for non-EU citizens, including the use of a ‘fideicomiso’ in Restricted Zones.
- Outside these zones, direct ownership is possible regardless of your nationality.
Important Steps Before Buying:
- Check Legal Status: Ensure the property has clear title and no liens.
- Engage a Lawyer: Consult with a lawyer experienced in Mexican real estate.
- Initial Agreement: Sign a preliminary agreement and pay a deposit.
- Due Diligence: Complete thorough checks on the property.
- Final Contract: Sign the official purchase agreement and complete the transaction.
Extra Costs and Rules:
- Notary Fees: In Mexico, notary fees are a significant part of property transactions.
- Acquisition Tax: Pay a one-time tax on property acquisition.
- Fideicomiso Costs: If buying in a Restricted Zone, factor in the costs of setting up and maintaining a bank trust.
- Property Taxes: Relatively low annual property taxes are applicable.
After Buying:
- Title Deeds: Ensure you receive the title deeds to your property.
- Utilities Setup: Arrange for connection of water, electricity, and other utilities.
- Annual Taxes and Fees: Be prepared for ongoing costs like property taxes and trust fees.
Residency and Citizenship:
- Residency: Owning property in Mexico doesn’t automatically grant residency.
- Options for Residency: Various visas and residency options are available, which can lead to citizenship over time.
Buying Additional Properties:
- Multiple Properties: There are no restrictions on the number of properties EU citizens can own outside the Restricted Zones.
- Additional Costs: Be aware of extra taxes and fees for each property.
- Legal Compliance: Ensure compliance with all regulations, especially in Restricted Zones.