Property in Mexico can be legally owned by foreigners. If you buy property outside of the restricted zone (50 kilometers from the coastline or 100 kilometers from the border), you are allowed to own the property fee simple. This grants you nearly the same rights you receive when you purchase property in many parts of the world.

Fideicomiso
To acquire property in the restricted area which includes Merida and some areas of the Yucatan, you must engage a Mexican bank to execute and hold title to the property using a contract known as a fideicomiso. With this, you and the bank are both listed on the title papers.

The fideicomiso creates a trust contract for the benefit of the foreign buyer. The bank has a fiduciary obligation to the owner. The owner retains all the benefits of ownership and has the legal right to lease, sell, and/or will the property to his heirs. Fideicomisos are currently 50-year documents. They can be renewed at the end of the 50-year term for an additional 50 years. There is no limit to the number of times the fideicomiso can be renewed. The renewal fee is currently about $900 USD.

Right now, the cost for initiating a fideicomiso is approximately $2,800 USD. There is an annual fee to the bank for maintaining the fideicomiso. The annual fee is based upon a percentage of the value of the home. An estimated figure for a home in the $100,000 USD range is about $600 USD a year. Current law does not allow a fideicomiso for properties larger than 2,000 square meters (approx.21,520 sq.ft.). You can apply for an exception to this law.

Foreign Owned Mexican Corporation
If your property is larger than 2,000 square meters, you may own property as a shareholder of a Foreign Owned Mexican Corporation. It costs about $1,500 USD to create a Mexican Corporation and legally register it with required governmental offices. You need to incorporate under the laws of Mexico and report your corporate earnings through an accountant. Accountant fees vary between $50 and $150 USD a month.

The corporation requires a minimum of two individual shareholders that are at least 18 years of age. The principal officer of the corporation is required to have an FM-3 Visa. You can apply for the Visa yourself at the Mexican Immigration office or you can hire an attorney to do it for you. It will cost about $500 USD. You may also want to incorporate if you are going to run a business.

If you want to own property in the Yucatan, contact us today!

Our Policies
Casa Yucatan Real Estate It is our pleasure to show you properties. We ask a two-day notice to arrange showings. Casa Yucatan offers consultation regarding legal and accounting advice. We have architectural and design consultants to help, should you need them.

We charge $25 USD for a half-day and $50 USD for a full day. We can provide transportation with gasoline expenses. This will be refunded to you at closing.

Casa Yucatan wants to make buying your property as easy and pleasant as possible.