How Can a US Citizen Buy a Property in Mexico?

According to the Global Property Guide, the market for Mexican property increased by 10% in the last year and doesn’t look to stop soon. Now is the perfect time to dive in and take a slice of that pie for yourself, especially as the process is surprisingly straightforward with the help of an experienced real estate agent. 

So, can a U.S. citizen buy property in Mexico or not? If so, what does it take to start buying property in Mexico as an American investor?

Read on to discover several crucial legal factors you need to understand and learn more about earning yourself a place on the Mexican property ladder. So, unravel the secrets behind owning a dreamy beachfront house in our southern neighbor, or picking up a new item for your portfolio today.

Can a U.S. Citizen Buy Property in Mexico?

In short, yes. Buying a house in Mexico is very much possible for U.S. citizens, and many do it every year. So much so that it is one of, if not the highest, searches for second-home buyers for Americans at present.

Thanks to recent improvements in international law, Mexico has made it easier for foreigners to acquire property there. One such law is the USMCA, a North American treaty defining several ongoing understandings between the U.S., Mexico, and Canada.

This legal change is also the result of Mexico’s attempts to balance its sovereignty with the economic benefits of foreign money. As such, the government has taken several steps to ensure that all property transactions are more straightforward and without complication.

Acquiring Mexico’s In-Demand Coastal Properties

There are a few extra steps if you want to buy a property near the Mexican border or the sea. Dreamy coastal villages are often in these zones, so they often appeal to U.S. citizens looking for more scenic and tranquil getaways. 

Mexico defines these zones as locations within:

50km of a foreign border, including:

• – Areas near Mexico’s border with the U.S.
• – Locations next to Belize or Guatemala

100km of coastline, including:

• – Puerto Vallarta
• – Acapulco
• – Los Cabos
• – Riveria Maya

Lucky for you, we have decades of experience handling properties in these picturesque and highly sought-after zones. We have already helped hundreds of clients navigate the process and can do the same for you.

Foreign investors have much more freedom to buy and sell locations outside these areas, but these breathtaking beachside properties are still within reach. Working with a knowledgeable real estate agent means you have all the experience you need to buy up a location perfect for you.

How to Legally Buy Property in Coastal and Border Areas

Bearing the above in mind, can U.S. citizens own property in Mexico when the location is within these zones? Yes, but several limitations exist, specifically in the form of the “fideicomiso.”

The fideicomiso is a method by which foreigners can create a trust agreement with a Mexican bank. This process involves:

• – Discussing the situation with the bank in question
• – Paying setup fees to create the trust
• – Handling maintenance costs
• – Establishing a 50-year renewable trust
• – Buying the property using the trust as the property manager

Through this agreement, the buyer still holds rights as the beneficiary, with the bank acting as a trustee. Legally, it guarantees that the U.S. buyer’s rights are equivalent to those of local Mexican citizens. In addition, the bank also provides several other legal protections due to being the trustee.

The steps to do this are much simpler with the aid of an experienced real estate agent. Many Americans have already worked with us to complete this process, offering extra security and legal protection to your purchase, similar to owning the property outright. However, there is also the added assurance of oversight from the bank, preventing complications that may occur further down. 

The legal structure also allows buyers to still do the following with the property:

• – Sell it to others
• – Lease it out
• – Use it themselves
• – Bequeath it to another

However, these rights may have limitations as set by the trust itself. You should confirm these rights with the bank before leveraging them. If you need additional help, legal advisors and realty services can help you navigate such an agreement.

Using a Mexican Corporation to Purchase Property

Can a U.S. citizen own property in Mexico if they do so as a business entity? Again, yes!

An option for some investors is to set up a Mexican corporation. Instead of working through a trust, this enables you to buy the property directly. However, it is crucial to understand that this corporation must follow all applicable Mexican business laws.

Setting up a business is perfect if you wish to buy property as an investment. You can then lease it out to others, either as a home or as a vacation rental. Doing this even allows you to offset purchase costs before using the home for a later retirement.

While establishing a corporation in Mexico may sound like a big task, speaking with a professional real estate agent can make it much simpler for you. We recommend that if you want to take this route, you talk to a company like Azul Mexico Realty to help you “dot every ‘i’ and cross every ‘t’.”

Discover Your Dream Home in Mexico Today!

You should now have all the information you need to answer the question, “Can a U.S. citizen buy property in Mexico?” Buying a property is more straightforward than people think and offers many benefits for Americans just like you.

With a legacy of success, Azul Mexico Realty, led by real estate expert Kira, can guide you toward the property of your dreams. We can help you at every step, from choosing a location to setting you up to acquire a property that suits you. So, check our listings and find somewhere that matches your needs today.