Traditionally foreigners have faced restrictions from owning real estate in Mexico.
In the past foreigners could not own real estate in Mexico in the ‘Restricted Zone’, which is within 50 kilometers from the shore and 100 kilometers from the border. However, Mexico’s authority has been applying legal loopholes to allow foreigners to acquire real estate within these restricted zones for residential reasons.[divider_flat]
The most broadly used legal loopholes is the figure of the ‘Fideicomiso’, which is a legally sound trust used to allow foreigners to own real estate in Mexico. Although a fideicomiso is completely legal, it has in the past caused confusion for investors and may have deterred potential investors from acquiring property in Mexico. It also may have resulted in the lack of regional development for different areas of Mexico.
We are happy to announce a huge step toward eliminating this constitutional restriction by legislators of Mexico. This step will permit foreigners to own fee simple real estate in Mexico for residential purposes.
On April 23, 2013, Mexico’s Lower House approved a Constitutional Reform to remove the aforementioned restriction and send the bill for discussion and possible approval from the Senate, which will be voting on the next following weeks.
Assuming that the Bill will pass on the Senate, it will still be required to go through a comprehensive approving process by 2/3 of Mexico’s 32 States. Consequently, many steps for the implementation of this Constitutional Reform will follow until we will learn how this historical change will work for the benefit of all foreigners looking to buy real estate in Mexico.
Own Mexico will provide you with updates on how this will affect property investments and purchases.[hr]
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