Mexico offers attractive real estate opportunities for foreign investors, but certain legal requirements must be met to ensure full certainty and protection throughout the acquisition process. Selecting the right property is only the first step—understanding the legal limitations and obligations established under Mexican law is equally essential to safeguarding your investment.
A key example, is the obligatory use of a bank trust (fideicomiso) in certain regions of the country. In areas near international borders or along the coast, foreign individuals may not acquire property directly. Instead, they must do so through a trust with a Mexican financial institution acting as trustee. Through this structure, you may use, enjoy, and dispose of the property even when the bank appears as the legal owner. You may also designate substitute beneficiaries to protect your property and facilitate future estate succession.
At Roqueñí Abogados, we have guided numerous foreign clients through this process, One of the most common reactions is surprise at the costs, procedures, and requirements that were not anticipated from the outset. For this reason, we outline below the key aspects that help ensure a safe, well-informed, and seamless acquisition.
The Restricted Zones Under Mexican Law
Mexican legislation provides that foreigners cannot directly acquire property within two restricted zones:
• A strip of 100 km along international borders, and
• 50 km along the coast line.
In these areas, acquisitions must be structured through a bank trust (fideicomiso), with a Mexican bank serving as trustee, while you retain all rights as beneficiary.
Common Costs and Requirements in a Trust-Based Purchase
• Notary Public Fees: Generally ranging from 1% to 3% of the property value.
• Property Acquisition Tax (ISABI): Varies across states, usually between 2% and 5%.
• Permit from the Ministry of Foreign Affairs (SRE),): Approx. USD $1,200
• Trust Setup and Annual Administration Fees: Typically USD $750 to $2,000 per year.
• Additional Expenses: Title search and, legal opinions, commercial appraisal, and administrative costs.
The trust structure not only allows you to legally acquire and manage property in restricted
areas but also strengthens estate planning protections through the appointment of substitute beneficiaries.
Planning to Purchase Property in Mexico, to as a Foreigner? We Can Assist.
To avoid unexpected requirements or legal risks, Roqueñí Abogados provides comprehensive guidance at every stage of the acquisition—from initial legal analysis and compliance with statutory requirements, to contract execution and ong-term asset structuring.
More than legal advisors, we are your strategic partners, ensuring that your real estate investment in Mexico is secure, compliant, and aligned with your long-term objectives.