A common question among international buyers is whether they can legally own property in Mexico, particularly in coastal areas like Rocky Point. The answer is yes, but there’s a specific legal process designed to protect both the buyer and Mexico’s national interests. Understanding this process can help alleviate concerns and provide clarity on how you can secure property in this beautiful destination.
The Fideicomiso: What It Is and Why You Need It
Foreigners cannot directly own land within 50 kilometers (about 31 miles) of the coastline in Mexico, a zone that includes Rocky Point. However, the Mexican government created the fideicomiso, or bank trust, specifically for foreign buyers. This legal mechanism allows you to purchase and own property indirectly through a Mexican bank, which holds the title for you. The fideicomiso grants you all the rights of ownership—you can sell, lease, or pass on the property to heirs.
The fideicomiso is set up for a 50-year renewable period, making it a secure and flexible long-term option for foreign buyers. It’s similar to owning property through a trust in many other countries, and this system has been in place for decades, encouraging foreign investment in Mexican real estate.
Fideicomiso vs. Other Ownership Options
If you’re not comfortable with the fideicomiso, some buyers may consider forming a Mexican corporation. However, this is only a viable option if you plan to use the property strictly for business purposes, such as renting it out commercially. For personal use, the fideicomiso is the most straightforward and cost-effective choice.
Why Choose Rocky Point?
Rocky Point is one of the fastest-growing beachfront destinations in Mexico, and its proximity to the U.S. border makes it a prime location for Americans and Canadians looking for vacation homes or investment properties. The fideicomiso offers a secure and established legal path to own property in this beautiful region, ensuring your investment is safe and in compliance with Mexican law.
Conclusion
Yes, foreigners can legally own property in Rocky Point through a fideicomiso. This legal trust offers full ownership rights while complying with Mexico’s regulations for coastal land. If you’re considering purchasing property here, it’s essential to consult with a qualified real estate agent and a notary public to guide you through the fideicomiso process and ensure your transaction is legally sound. For a deeper dive into the fideicomiso, check out our blog ‘How to Navigate the Fideicomiso Process in Mexico’.