Can foreigners own property in Mexico?
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Yes, foreigners can own real estate in Mexico.
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What is the Restricted Zone?
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The belt of 100 km along the border or 50 km
along the coast is known as the Restricted
Zone. Foreigners CAN acquire beachfront property here through
a trust or a Mexican Company.
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What is a fideicomiso?
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A fideicomiso
is a trust acquired through a bank to obtain rights over a certain
property.
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What do I need to do to establish a fideicomiso?
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All you do is choose a bank to be your representative
or trustee. This bank will get a special permit from the Foreign Affairs
Ministry for a certain property.
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What legal rights do I have over the property
through a fideicomiso?
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You have all the legal rights that a normal ownership
give you. You may sell the property, modify it, transfer it, build on
it, lease it, mortgage it, etc.
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What is the cost of the fideicomiso?
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The bank charges an initial fee for the preliminary
studies and drawing up of the agreement. This varies from bank to
bank, but is approximatly $2,600. Then the bank charges a yearly
fee, which is a percentage of the property value for the services
as a trustee.
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Can a foreigner own a business in Mexico?
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As a foreigner, you may own a Mexican
Corporation, who in turn will own the business.
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How much are the closing costs?
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The closing costs vary depending on the value
of the property, but they are usually between 5-7% of the property value
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Who pays for the closing costs?
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The buyer pays the closing costs. The seller normally
pays for the capital gains tax.
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Who registers the title?
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A Notary Public, who is a government appointed lawyer
that acts on its behalf to insure the proper transfer of the property,
registers the title.
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