Buying property in Mexico is becoming more and more popular each year. Whether purchasing a vacation home or planning to retire in the region, owning real estate in Mexico is easy and safe to do. With its incredible natural resources, rapidly improving economy, modern facilities and infrastructure, Mexico is the place in which to turn your dream home into a reality. Outstanding client service, experienced business practices, and ingenious marketing strategies is what makes our team the most trusted team in the area.
Mexican laws permit foreigners ownership of real estate on or near the beach through a Mexican Bank Trust or “Fideicomiso”. All land within 30 miles of the Mexican coast and 60 miles of a national border is regulated through the use of a Bank Trust for foreign investors. Mexican banks are the only institutions that can hold Trust of the deed for foreign buyers.
The Mexican Government issues a permit to the Mexican bank of your choice, allowing the bank to hold title to the property, while the purchaser holds title to the beneficiary rights (almost all Mexican banks are owned by or in partnership with American or European Banks). The bank acts as the Trustee and you become the Beneficiary of the Trust. The Trustee can only take instructions from the Beneficiary or foreign purchaser.
It gives you all the rights of ownership such as the right to occupy, use, sell, rent, build on or improve the property. You may also mortgage the real estate and instruct the bank to transfer title to another person or corporation. You will be obliged to pay property taxes, utilities and condominium maintenance fees if applicable, and the Trustee’s annual fee, which varies from bank to bank.
Upon the sale of property held under a Trust, the Secretary of Foreign Relations is required by law to issue a new Trust permit to the buyer. If the property is sold to a Mexican, the Trust can be terminated and the property can be owned directly.
The initial term of the Trust is 50 years. During the final year of each 50-year period, it can be renewed for a subsequent 50-year period: renewals can be repeated on an indefinite basis.
The Beneficiary has the right to appoint a substitute beneficiary(ies) who will be granted all rights and obligations which should be arise from the Trust in the event of the death of the Beneficiary. Heirs will not be required to follow any probate proceeding before the Mexican courts. They only have to give to the Bank/Trustee and show the death certificate, along with their identification. The Bank will register them as the new Beneficiaries of the Trust, at no cost.
Our professional agents will be by your side to guide you every step of the way; however, the basic requirements are as follows.
Trust bank and closing are around from 5 to 9% of the property value.
In the 1917 Mexican Constitution, foreign ownership was prohibited in the Restricted Zone due to Mexico's extensive history of land ownership being predominantly in the hands of foreigners (Article 27). However, in 1973, recognizing the potential positive impact of foreign investment on the economy, the Mexican government introduced a series of foreign investment laws. This shift in policy paved the way for the establishment of the trust system in 1993. In essence, the creation of the trust system provided a more feasible solution for facilitating foreign ownership compared to the arduous task of amending the Mexican Constitution.
This option holds significant appeal, especially for investors, given its lower purchase price, brand-new condition, potential for negotiation, and customization of apartment units. An important factor to consider is the property's appreciation during the pre-sale phase. Additionally, reasonable payment plans are available during the construction period, typically spanning a delivery timeframe of 6 to 24 months.
Typical payment plans:
*In general, these are the payment plans offered during pre-sales; however, they may vary depending on the developer.
As a foreigner, you can qualify for financing to acquire property in Mexico. The process is straightforward, and you don't need to have income in Mexico. Financing is available for up to 180 months, with an initial 36% Downpayment and monthly payment subject to a 4% annual increase. Payments are in pesos and can also cover closing costs through financing.
*If you need more information about financing please contact us.
Maintenance costs vary depending on the type and location of the property. However, they are generally reasonable and cover expenses such as security, landscaping, and common area upkeep, this cost could go from 2.5 USD to 6 USD per 10.764 sq ft.
Yes, there are property taxes but the cost is very reasonable and manageable compared to many other countries.
As an example: Value of 200.000 USD x 0.001%= 200USD.
No, neither Riviera Maya Homes or any of our advisors charge any fees for our services. It's our pleasure to assist you in this process of finding your dream home in paradise. All brokers receive a commission from the seller.
Rivieramaya-Homes is dedicated to helping you find the perfect home or investment property in Mexico's beautiful Riviera Maya. Our team guarantees secure and exclusive listings that are sure to make your real estate journey successful.