It’s great to dream of owning a vacation spot in Mexico, be it a charming condo by the sea, a tiny cabin somewhere, or whatever… It’s even more fun doing it!
In recent years, it has become easier for foreigners to own real estate in Mexico, including Mexican beachfront properties. See below to find out more about how it works… properties near the ocean are handled in a different way than other types. But it’s great that we can do it now!
Buying real estate in Mexico differs from the at-home process in a number of ways, so work with a lawyer who knows the ins and outs and speaks good English.
Some Tips on Buying a Mexican Home, Land, etc.
Mexican real estate is usually paid for by cash or check. Mortgages are quite rare.
Partly because of the scarcity of mortgages, a home may be on sale for a long time. This can be to your advantage when buying, and less profitable if you decide to sell.
Mexican title insurance for real estate is much less common than in the US, but you really have to manage to get it.
There is one type of soil to watch out for — ejido soil. Ejido was a land that was jointly owned in the past, and its title could be unclear.
If you’re exploring real estate — be it houses, land, condos, or whatever — in a specific area of a Mexican city or state, ask locals what’s for sale. You may have many options that are not registered with the real estate office and don’t even have a sign up front. You can find treasure this way, even if your Spanish is pretty basic!
Prices may be higher if the seller knows that foreigners are interested. So you may pay more than local, but feel free to haggle. This is expected!
Property measurements are often in square meters. To illustrate, 1 acre is equal to 4046.86 square meters. One square meter is equal to 10.7639 square feet.
Buying Mexican real estate near the sea
As individuals, foreigners cannot own property within approximately 30 miles of the coastline or approximately 60 miles of the border. But there are two ways that you can legally own Mexican real estate in this area. Experts say that both methods are safe, if set up properly.
[1] A bank trust is typically used for residential real estate, and it is called a fideicomiso in Spanish. The bank “owns” the property but you as the trustee have full control over the real estate, to build it, sell it, put it in your will and avoid inheritance taxes, etc. You can list more than one guardian, for example, yourself and your spouse or yourself and a friend.
Bank trusts are good for 50 years and are renewable. Setup costs run around $500 for this setup, and the annual fee is about the same. There are regulations about how large the land is.
[2] You can form a Mexican company, but neither owner can be Mexican. If the land is to be used commercially, this is the way to go. The cost of setting up this company is several times higher than for a bank trust. A Mexican corporate tax report must be filed, which you will have a Mexican accountant do for you.
So if you dream of owning a house in Mexico, do your homework and go for it! Thousands of foreigners have done it, and many of them live in their homes now. You can join them!