Answers To Frequently Asked Questions:
About Buying Property in Mexico
Q: Owning Property in Mexico
A: Amendments to the Constitution permit foreigners to purchase and own real estate in Mexico located within the "restricted zone" which is all land within 60 miles of a national border and within 30 miles of the Mexican Coast. This Law permitted ownership through a land trust or "Fideicomiso".
A "Fideicomiso" is a Mexican Trust. The Mexican Government issues a permit to a Mexican Bank of your choice, allowing the bank to act as purchaser for the property. The bank acts as the "Trustee" for the Trust and you are the "Beneficiary" of the Trust. The "Beneficiary" rights are very similar to Living Wills or Estate Trusts in the U.S
Q: Do you have Annual Homeowner Dues?
A: Yes. Homeowner fees are presently in the range of $400 to $450 a year and include the costs associated with the common areas, roads, caretaker home and caretaker wages, taxes and benefits, a local manager that oversees the Caretaker and certain related administrative and bookkeeping expenses. Property taxes are a separate expense and are very reasonable compared to what you pay in the U.S.
Q: What is the cost to apply for a Bank Trust or form a Mexican corporation?
A: Fees can vary significantly based on who you retain, but generally run in the $6,000 range. It can be less expensive to form a Mexican corporation which avoids the annual Bank Trust fee. We can recommend certain providers of this service that we have worked with successfully in the past.
Q: How much does it cost to build?
A: The current price to build is in the $80 per square foot range. The price will be lower for garage space, covered patios and decks. Building permits are required and the contractor will secure the necessary permits.