U.S. Owning In Mexico

    YES, you can own property in Mexico. The first question people usually ask about when buying Mexican Real Estate is whether or not they can actually do it and are they at risk of having their property taken away by by the government. The truth is, many non-Mexicans have purchased property in Mexico and the government cannot take your land if you have the proper legal title.

    Additionally, since the change in the foreign investment law of December 1993 foreigners can now own land in the formerly restricted zones - within 30 miles of the beach and 50 miles of the border. For non-Mexican citizens, the laws of Mexico established an ordinance where the title is placed in a trust called a "Fideicomiso" (fee-day-co-mee-so) which acts as and is registered as the legal owner. This ordinance is virtually identical to trusts established in the U.S. to avoid probate. 

    YOU are the owner! You as the homeowner, have complete control over the trust and can sell, will, rent or transfer the property at any time. The Fideicomiso "trust" is established for an initial 50-year term and perpetually renews every 50 years. The cost of establishing the Fideicomiso "trust" is approximately $500 U.S. dollars and the fee to maintain it is approximately $500 U.S. dollars per year.

    The Fideicomiso has a trustee, such as Citibank-Banomex, which acts as a fiduciary on behalf of the homeowner who is the beneficiary of the trust. This is the same as a trust in the United States. Additionally, the SEC has ruled that a Fideicomiso is equivalent to a "fee simple" title in the U.S. This is how billions of dollars worth of property in Mexico is owned by foreigners.

    The trust system of ownership is sanctioned by the Mexican government, provided for under the Mexican constitution, and secured by the Central Bank of Mexico; thereby offering powerful protection.

Title Insurance

    Title insurance is essential to ensure that you have a free and clear title when you purchase property. Like in the United States and Canada, Title Insurance can be purchased for properties in Mexico. Property titles can be searched back to the first days of the Mexican Replublic. It is extremely important when purchasing property in Mexico that you obtain a title insurance policy. This insures a clean and clear title. Just like in the United States, unless a Title policy is in place, you will never be able to obtain low interest American financing. 

    Stewart Title Company is one of the most experienced providers of title insurance in the U.S. and one of the largest title guaranty companies in the world. They have a division that specializes in Mexican real estate transactions. With more than 100 years of service to the real estate industry, Stewart Title has established over 3,500 offices worldwide, including a local office in Tijuana, Mexico. For further information regarding title insurance analysis and policy-issuance, please visit Stewart Title's website at www.stewartmexico.com. 

Real Estate Taxes

Real Estate Taxes are a very low, maybe $200 +/- annually, as an average. A 2% transfer tax at the time of closing is a one-time tax when title is passed. This is collected by the "notario" (Notaries are a very high position and only 15 serve Tijuana and Rosarito residents) and paid to the Mexican Government.

Financing

"Mortgage Financing in Mexico Increasing for U.S. Buyers" By Mitch Creekmore, Stewart International

Capital Gains

"Capital Gains on Real Propert in Mexico" By CS Financial, Mexico