Trusts are created to allow foreigners to have ownership rights of properties within the restricted zone in Mexico, which is all land located within 100 kilometers (62 miles) of any national border and within 50 kilometers (31 miles) of any ocean. This method has been very successful for Mexico and foreigners alike.

Can you own beachfront property in Mexico?

According to Mexican law, foreigners are prohibited from owning land within 31 miles of the coastline or 62 miles from an international border. Hess, like all foreigners, had to enter into a special partnership with a Mexican bank, which gets to hold the title to his property in renewable 50-year trusts.

Can you own property in Baja?

Foreigners can own property anywhere in Mexico. Recent changes to Mexican laws now permit foreign ownership of Mexican Real Estate. The way the title of the property will be held will depend on its location. If the property is in the “Restricted Zone” it will have to be held with a Fideicomiso (Bank Trust).

Can foreigners own real estate in Mexico?

The law permits foreigners to acquire property in Mexico, as long as it is located outside of the so-called ‘Restricted Zones’, which include any land within 100 kilometres of foreign borders or within 50 kilometres of the sea, as an attempt to prevent foreign invasion.

How much is a bank trust in Mexico?

There is an initial fee to set up the trust, which varies depending on property and institution. On average, however, it costs $700 USD. Annual fees also vary depending on the institution.

Can I buy a house in Tijuana?

1) You cannot OWN property in TJ. It is unconstitutional to own property in Mexico within 62 miles of a border or 31 miles of a coast. You technically purchase a long term lease called a Fideicomiso. It does grant most of the rights of ownership (albeit with another fee) so you may now care.

Can you buy property in Tijuana?

As a foreigner you can embraced homeownership in Tijuana. The laws in Mexico allow foreigners to buy and sell properties, making this a good opportunity to generate profits. There are credits available in banks for foreigners to obtain properties even outside the restricted zone.

Are there real estate investment trusts in Mexico?

Real estate investment trusts enable foreign entities and people to invest in Mexico’s coastal and border areas, which were once restricted from foreign investment of any kind. Only Mexican banking institutions authorized and regulated under Mexican laws can serve as trustees.

What to do if you have a Bank Trust in Mexico?

If you have a bank trust for Mexican property, you also have the right to designate who you want to inherit your trust rights. This is a completely separate procedure from the Testamento. You can designate just one person, or any number of people in whatever percentages you want.

How does the Mexican government own real estate?

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. There are specific Banks authorized by the Mexican government to hold the Real Estate Fideicomiso.

Who is the trustee of a Mexican Trust?

The Trustee holds legal title to the real estate property during the term of the Mexican trust contract and is also empowered with rights and powers necessary to achieve the objectives of the contractual agreement creating the Trust. 2. Understanding the Mexican Bank Trust