CAN NON-MEXICANS OWN REAL ESTATE IN MEXICO?
Yes, anyone can buy and hold ownership of real estate in Mexico provided there is an
agreement in which foreigners renounce the possibility of invoking the protection of their
Government in regard to the acquired property. If you want to buy within the border (100
km, 60 miles) or the coast line (50 km, 30 miles) the so-called “restricted zone” and your
intention is to have a second home for pleasure or retirement, the mechanism will be to
acquire the beneficiary rights through a Fideicomiso (the Mexican legal term of a trust where
trustees can only be banks). If you want to buy a property for business proposes (building a
hotel, have vocational property for rent, etc.), you may use the Fideicomiso or incorporate a
Mexican Company that buys the Property you desire to use for business.

WHY PROPERTY IN THE “RESTRICTED ZONE” SHOULD BE ACQUIRED
THROUGH A FIDEICOMISO (TRUST)?
There is a Constitutional restriction in article 27 that establishes a restricted area of 100 km
within the border and 50 km from the coastal lines in the aforementioned restricted zone.
Properties purchased by foreigners may only be acquired through a bank trust. In this trust
fund, the banking institution holds the deed to the property but it is the foreigner who holds
the rights over the land.

WHAT IS A FIDEICOMISO?
A Fideicomiso is a real estate trust held on your behalf by a Mexican bank of your choosing.
The bank acts as the trustee, and you and those you designate are the beneficiaries of the
trust. As the beneficiary of the trust, you maintain complete control over it, retaining the use
of the property and making all investment decisions. This is not a lease. It is equivalent to a
living trust in the U.S. A Fideicomiso bestows upon the beneficiary of the trust (you) absolute
and irrevocable control over the property; to enjoy, lease, improve, mortgage, sell, inherit
and will.

Simply stated, your property is placed in a trust that you own and to be administered by a
Mexican bank on your behalf.

ARE THERE ANY THINGS TO KEEP IN MIND IN THE CREATION OF A
FIDEICOMISO?
Please take in mind that before a Fideicomiso can be created in the benefit of a foreigner, the
Mexican bank, applies for a trust permit with Mexico’s Foreign Relations Department. The
application process is relatively simple. Information provided by the parties and the property
is required as part of the application process, together with the payment of an application fee.
Upon the issuance of the Fideicomiso permit, the parties are then free to formalize the
creation of the Fideicomiso by transferring the real property in front of a Mexican Public
Notary.
Like any other real estate transactions in Mexico, the creation of a land trust will require
appraisals, the obtaining of certificates of no-liens, certificates of no-debt (on property taxes)
and any other customary or statutory requirement under local and state laws for closings on
real estate.

BUYING THROUGH A CORPORATION?
Many investors choose to purchase property though a corporation if the intent is to conduct
the investment as a business. This would be the case in situations such as buying and selling
land, renting their property or when owning more than one property. Keep in mind that
property owned by a corporation is a commercial property, and incurs a slighter higher water,
electric, and telephone rate.

WHAT ARE THE TYPES OF MEXICAN CORPORATIONS?
There are several different types of Mexican corporations. However, the two most common
are a limited liability corporation (LLC) and a limited liability partnership (LLP). Choosing
which type of corporation to set up is important for tax purposes in both the U.S. and Mexico.
It is highly recommended to speak with an attorney and / or accountant on both sides of the
border to understand the benefits and costs each one entails. Making sure the choice is made
correctly from the beginning will save you time and money.

HOW DOES BUYING THROUGH A CORPORATION WORK?
Ownership of property in Mexico is possible through the establishment of a Mexican
corporation. As of 1995 foreigners can fully own, operate and administer Mexican
corporations. A foreign corporation in Mexico requires two or more individual investors,
who combined, control 100% of the corporation. None of the corporation’s investors can be
Mexican. Once your Mexican corporation is formed, it has the legal capacity to acquire
property anywhere in Mexico, including the restricted zone. Through a corporation, foreign
owners acquire the right of domain, in addition to possession and benefit. The property is
owned with the same rights as if it were a Mexican entity. There are no investment restrictions
on foreign-owned Mexican corporations aimed at buying and developing property

WHY BUY IN LOS CABOS?
• A real estate investment in Los Cabos offers the highest appreciation rate in all of
Mexico.
• Investing in one of the highest-end locations found anywhere in the world today.
• Investing in one of the fastest growing touristic destinations in North America with
literally billions of dollars currently in the marketplace.
• Over 15 different major signature golf courses.
• The #1 world-class fishing destination in the world