Buying Mexico real estate is easy for foreign buyers

Mexico is a great place to vacation as it is very close to the United States and Canada by plane and the climate is warm when it is very cold everywhere else. Have you ever been on vacation in Mexico? If so, have you ever wondered how it would be possible for you to own your own place here? I know i did that several times while on vacation in Mexico. First, it seems a little scary looking at buying a property in another country where you do not speak their language. Also, there are plenty of rumors flying around about how the government can take away your property or how corrupt things are in Mexico it goes on and on. There of course are also rumors that foreigners cannot own a property in Mexico. Nothing can be further from the truth. The government cannot take away your legally titled property once it is registered with the public registry. Also, foreigners can and do own homes, land, condos as well as commercial property in Mexico every day.You just simply have to know the laws. According to the Mexican constitution a foreigner cannot title any property that is within 100km of any border or 50km of any coast in their name. That doesn't mean you cannot own it, it means you have to title it differently than you would if you were in the interior of Mexico. In the interior you can buy property as you would in the U.S. or Canada. It can be titled in your name with no problems at all. If you want a home or property in mexico that is within 50km of a beach then you have two choices.
Option one is to setup a Mexican business much like a limited liability corporation in the United States and then in turn title the property you are buying in the name of your business. To begin a corporation you need yourself and one other person that is at least 18. Percent of ownership or shares can be divided however you decide. To use the business to title your property you need to be able to legally show that you are using the property for commercial purposes or that you can show intent to use the property for commercial purpose. One example might be if you bought a building with shops on the first floor that you rent out to locals and on the 2nd floor it has condos that you live in one and rent out the rest. That would show that it is for business. Buying a single condo or single family home even if you rent it out is NOT considered commercial. This is kind of a gray area but you want to be careful as if you dont show that the property is for business use then you could be subject to a penalty up to two times the value of the property.
Option number two is using a bank trust and holding the title of the home or condo in that trust. The word for this trust in spanish is fideiocomiso (fee-day-ko-me-so). The title is held in trust with the bank and you are named as the trustee granting you (could be you and your spouse) the power to make any and all decisions regarding the home. In this way you and only you have this power over the trust so for all intents and purposes you are the owner legally. You would want to use the bank trust unless as stated earlier you are buying a building or area that includes commercial property in Mexico.

You can see more at www.cheapmexicorealestate.com

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staff writer from Riviera Maya real estate news www.cheapmexicorealestate.com

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