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Most Asked Questions
Brought to you by our very own Expert, Founder and CEO of Discover Nayarit,
Sterling Meade


Can foreigners own property in Mexico?

Nayarit HomeYes. Foreigners can own real estate (whether lots, land, houses or condos) in fee simple, just like a Mexican, except in the area known as the restricted zone, which is located along the borders (within 100 kilometers of the borders) and the coastline (within 50 kilometers of the coastline). Usually foreigners acquire real estate in the restricted zone through a trust agreement known in Mexico as a Fideicomiso (pronounced “FEE-DAY-E-CO-ME-SO”), whereby a Mexican Bank is appointed as Trustee, and the foreign buyer is appointed as Trust Beneficiary. The Trust Beneficiary has the right to use and enjoy the real estate as well as the right to instruct the Trustee to sell or transfer the real estate. The term of the Trust Agreement is for 50 years and such term is renewable.

Is financing available?

Yes. More and more US lenders are active in Mexico and the Nayarit real estate market. Terms and rates are competitive with "second home" rates in the US, and are getting even better as more underwriters come into the market. Loans are now available to Canadian buyers as well.

Do I have to get “permission” to sell the property?

No. You may sell the property at any time to anyone you want, as long as the prospective buyer has the ability to acquire the real estate. Again, as a practical matter, it is essentially as if you owned the property in fee simple, the only difference here is that you have to instruct the Trustee to transfer either the real estate to the prospective buyer or assign the rights of the existing Trust Agreement to the prospective buyer.

Is Title Insurance available?

Yes, Stewart Title Guaranty de Mexico is authorized to issue title insurance policies in Mexico. Additionally, First American Title Insurance Company has reached an agreement with Grupo Nacional Provincial, S.A. (a Mexican Insurance Company) in order for Grupo Nacional Provincial, S.A. to issue title insurance policies for real estate properties located in Mexico.

Can I will the property to my children?

Beautiful Palm BeachesThere is no better estate planning tool than owning property in a Mexican Trust Agreement (Fideicomiso). When the Trust Agreement is executed, you may have the ability to appoint future beneficiaries or even appoint heirs (sub-beneficiaries) of the property.

Will I have to pay property taxes?

Yes, but they are stunningly low. Property taxes are determined by each State or Municipality, and they usually have very low rates, but they may be subject to adjustments on an annually basis. You must pay these very low taxes, because you have the same rights as any owner in Mexico and, it follows, the same obligations as any owner in Mexico.

What happens to my property if the trustee bank closes or gets into financial trouble?

Nothing. Your property is not part of the capital asset base of the bank. It is known as
“segregated assets" and cannot be attached no matter what happens to the bank. Your Trust would simply be moved to another institution. (Note that many Mexican banks are now internationally owned such as HSBC, Citibank, Scotia, etc.).

Can my corporation or LLC buy the property?

There are several ways to acquire Mexican coastal real estate. Most common is for a couple to buy as individuals or jointly owned, with a fifty-fifty undivided interest. You can use your US or Canadian corporation or LLC to purchase the property, but there are ramifications regarding capital gains when you sell.

As an owner of a condo, do I own the real estate?

Yes. Purchasers receive a public deed for the individual condo unit they purchase. Under Mexican law, the property is technically acquired by a Mexican Bank as Trustee for the Fideicomiso for the benefit of the beneficiary of the trust, therefore, you will have the exclusive right to use, sell, transfer or will your property as you see fit. A Mexican Fideicomiso is not a lease; it is a form of ownership in which real property is transferred into a trust for the benefit of the owner or beneficiary.

Sterling Meade, and his wife, purchased property in Nayarit, Mexico after learning that “Mexico is quickly becoming the place of choice for retiring Americans and Canadians.”


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