Can a foreigner safely buy land in Mexico?
Foreigners can buy property directly in Mexico’s interior. However, the Mexican Constitution of 1917 designated the area within 100 kilometres (62 miles) of Mexico’s borders and within 50 kilometres (31 miles) of the coastline as off limits to direct real estate ownership by foreigners. For many years this area was known as the Restricted Zone. Although direct ownership of real estate by foreigners in the Restricted Zone is not permitted even now, a foreigner can purchase the right to hold, occupy, use, improve, develop, rent and sell real estate.
Yes. In the past 30 years Mexican laws have changed and are now more accommodating towards United States Citizens who wish to own property in Mexico. Foreigners used to be prohibited from owning property in costal areas referred to as The Mexican restricted zone (property located within 100 kilometers miles of the border or 50 kilometers of the Mexican coastline). Now US Citizens can purchase property in this zone through a trust. This trust (which is called a fideicomiso in Mexico) enables the selected bank to act on behalf of the purchaser. It is important to note that Collateral International, LLC requires a Guarantee Trust on all loans, regardless of property location.
