Property Ownership by Foreigners in México?
Yes, ownership via a fideicomiso.
Foreigners can own property in Mexico through a fideicomiso, a trust mechanism established to facilitate secure investment. Historically, under the 1916 Constitution, all coastlines and waters in Mexico were off-limits to foreign ownership. However, in the 1970s, Mexican leadership recognized the need for foreign investment, leading to the adoption of the fideicomiso.
This trust functions similarly to a U.S. living trust, with a bank serving as the trustee. A fideicomiso typically has a 50-year term, which can be renewed. It allows for property to be transferred, inherited, built upon, mortgaged, and managed with minimal restrictions. Additionally, several American title insurance companies provide coverage for these ownerships, offering further security to foreign investors.
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