Owning property in Mexico is safe and easy because now there are established and well-defined rules allowing non-Mexicans to own land in Mexico. These rules are in place to protect your ownership rights and to promote the sale of real estate to foreign investors. The key is a safe, established and perpetually renewable Mexican Property Trust called "Fideicomiso" or "Trust".
With the advent of NAFTA, the Mexican Government recognized that it was crucial to make foreign investment in Mexico both easy and safe. Since 1917 the Mexican Constitution has prohibited foreigners from purchasing or owning real estate within 60 miles of an international border or within 30 miles of the Mexican Coast. A new, secure method of holding title was therefore created. This new instrument, modeled after the one in Monaco, allows ownership through a Mexican Property Trust, called a "Fideicomiso" or "Trust".
The Federal Department of Foreign Affairs in Mexico City issues a permit to a Mexican Bank, allowing the bank to act as purchaser of the property. The bank functions as the "Trustee" for the trust, and as the purchaser, you are the "Beneficiary" of the trust. The trust is not an asset of the bank, it simply holds the trust on your behalf. You are the only one who can direct the activities of the trust. You have all the same rights of a property owner in the U.S. or Canada, including the right to enjoy, sell, rent, improve or bequeath the property to an inheritor. The initial term of the trust is 50 years and it can be renewed for additional periods of 50 years indefinitely, providing long-term control of the asset. This is not to be confused with a "land lease". The property you buy is placed in a trust with you named as the beneficiary of the trust.
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