Manzanillo is on the verge of growing into the next must-see destination. Buying real estate in Manzanillo is getting more and more popular every year. Legally purchasing land in Mexico has led to much confusion. This is commonly seen when trying to buy land in restricted areas like near a beach or border.
As experienced real estate owners in Mexico, let us clear up a few misunderstandings about owning International Real Estate. Having been down this road before, we will make this process as seamless and pleasant as possible. As experienced land owners in Mexico, the following is a partial explanation of how to buy property in the coastal zones.
The laws have shifted considerably. No longer is owning land in Mexico out of the realm of possibility to foreigners. It's still not unusual to have someone emphatically exclaim that "you can't own property in Mexico", or that "you have to have a Mexican partner on title to own property in Mexico". Let us show you the facts to clear up any misconceptions that you may have.
Reality is often different than the perception:
Once upon a time the government did not allow foreigners to buy land in restricted zones (within 50 km. of the ocean, border etc.) because they were worried about being taken over by foreigners. This system was included in the constitution and as a result can't be changed. During these times, if you wanted to own real estate in Mexico, it was a risky venture at best.
Next came the Fideicomiso, a land trust system that allows newcomers to Mexico to own land (excluding Ejido land) in previously off limits territory (Manzanillo included). Not unlike a trust created in Canada or the USA where assets are lodged in the trust and held for the exclusive use of the beneficiary, your Mexican trust holds the property deed for the sole benefit of you, the beneficiary. You own your property and can do whatever you please with it. You can occupy, rent, sell, develop, lease, etc. at your discretion. One advantage of the trust is that when creating the trust document for a specific property, you lay out your beneficiaries upon you death, eliminating the need for a Mexican Will.
There are a couple disadvantages to getting land this way including a slightly higher price for the land trust and the yearly fee that you have to pay to the bank holding your documents. I look at this fee (tax on us) that Mexican's do not have to pay, as a part of the price we pay to enjoy all that Manzanillo has to offer.
Even in a restricted area, owning land is a cinch and you are not required to be a Mexican national to do it. The regulations pertaining to ownership land are different than ours, however the results are the same. Though difficult, this system is complete and comprehensive. The fideicomiso system provides protection for all parties involved, both in the buying and selling. Your notary should abide by the proper procedures when notarizing your documents.
Hope this helps and that it answers more questions than it raises. There is a wealth of info and misinfo on trusts in the internet. Be sure to check your facts. What you should take away from this is it's not hard to own real estate in Mexico. Other than some errands to the notary, getting a Fideicomiso is not challenging and no sweat.
As experienced real estate owners in Mexico, let us clear up a few misunderstandings about owning International Real Estate. Having been down this road before, we will make this process as seamless and pleasant as possible. As experienced land owners in Mexico, the following is a partial explanation of how to buy property in the coastal zones.
The laws have shifted considerably. No longer is owning land in Mexico out of the realm of possibility to foreigners. It's still not unusual to have someone emphatically exclaim that "you can't own property in Mexico", or that "you have to have a Mexican partner on title to own property in Mexico". Let us show you the facts to clear up any misconceptions that you may have.
Reality is often different than the perception:
Once upon a time the government did not allow foreigners to buy land in restricted zones (within 50 km. of the ocean, border etc.) because they were worried about being taken over by foreigners. This system was included in the constitution and as a result can't be changed. During these times, if you wanted to own real estate in Mexico, it was a risky venture at best.
Next came the Fideicomiso, a land trust system that allows newcomers to Mexico to own land (excluding Ejido land) in previously off limits territory (Manzanillo included). Not unlike a trust created in Canada or the USA where assets are lodged in the trust and held for the exclusive use of the beneficiary, your Mexican trust holds the property deed for the sole benefit of you, the beneficiary. You own your property and can do whatever you please with it. You can occupy, rent, sell, develop, lease, etc. at your discretion. One advantage of the trust is that when creating the trust document for a specific property, you lay out your beneficiaries upon you death, eliminating the need for a Mexican Will.
There are a couple disadvantages to getting land this way including a slightly higher price for the land trust and the yearly fee that you have to pay to the bank holding your documents. I look at this fee (tax on us) that Mexican's do not have to pay, as a part of the price we pay to enjoy all that Manzanillo has to offer.
Even in a restricted area, owning land is a cinch and you are not required to be a Mexican national to do it. The regulations pertaining to ownership land are different than ours, however the results are the same. Though difficult, this system is complete and comprehensive. The fideicomiso system provides protection for all parties involved, both in the buying and selling. Your notary should abide by the proper procedures when notarizing your documents.
Hope this helps and that it answers more questions than it raises. There is a wealth of info and misinfo on trusts in the internet. Be sure to check your facts. What you should take away from this is it's not hard to own real estate in Mexico. Other than some errands to the notary, getting a Fideicomiso is not challenging and no sweat.
About the Author:
The Mexican state of Colima offers some beautfiul relaxing one of a kind trip in the Happy Coast of Mexico and the real estate in Manzanillo is a reliable investment for the future. You have to go to this area on your next Mexico getaway!
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