If you’re interested in buying real estate in Mexico, then you’ll be delighted to learn that right now is proving to be the best time to take advantage of the Mexican real estate market in over a generation. As Mexico’s economy begins to post higher economic gains and the costs of production and labor remain cheap, more real estate developers are looking south of the border to build their next masterpieces.
Additionally, with upwards of 500,000 American expats living within Mexico’s many beach communities and cities, it’s no wonder more people are interested in real estate in Mexico.
However, like with purchasing any real estate in a foreign country, there are plenty of legal requirements you’ll need to fulfill before you can call a piece of Mexican property home.
Additionally, approaching the Mexican real estate market requires an understanding of certain social rules, which we’ll outline in this article.
Whether you want to own your own skyline apartment in Mexico City or want to build a sprawling estate along Mexico’s coastline, here is a definitive guide to buying and owning real estate in Mexico.
You Might Have Set Up A Trust To Buy Mexico Real Estate for Personal Use
Mexican law allows foreigners to own real estate in Mexico; however, you might have to set up a Mexican Trust to buy in Mexico’s restricted zones. Restricted zones are within 30 miles of the coast and 60 miles of the borders. In this situation instead of directly purchasing your real estate in Mexico, you must set up a trust that acts on behalf of your interests. This means that you’ll have to have a Mexican bank act on your behalf when you’re ready to purchase real estate in Mexico. Because the process can be complicated and time-consuming, it’s best to hire a local attorney or an American attorney who understands how Mexican real estate law works.
If you opt for the latter route, please note that you will still need the assistance of a Mexican attorney, as even specialized American lawyers are not allowed to practice law within the country of Mexico. This law does not apply to Corporations for Touristic Development that allows foreigners to incorporate in Mexico and own 100% of the shares in the Mexican Corporation that would hold title to the property that would be developed for tourism.
Buying in a Restricted Zone
Much like the national parks of the United States, there are certain areas within Mexican where you are not allowed to purchase or build any real estate whatsoever, as all of that land legally belongs to the Mexican government. Most of the restricted zone can be found within 60 miles of both the northern and southern Mexican borders and 30 miles of the coastline.
To ensure that you’re not investing money into bogus real estate, make sure that you’re not buying any properties that lie within this restricted zone, as you’ll have no legal rights to it – even after you spend all of your money on it.
Get The Right Visa
If you intend to use your real estate in Mexico for living purposes, then you’ll need to gain entry clearance with the right kind of visa. If you purchased property in Mexico because you intend on working within the country, then you’ll need to have your prospective employer sponsor your visa to gain the necessary entry permission.
If you’re looking to retire in Mexico, you must have evidence of funds that indicate you can support yourself for the duration of your retirement without relying on public assistance from the Mexican government (as a general rule, ensure you have a minimum of US$1500 per month, in addition to US$500 for your spouse or any other dependents who will be living with you).
If you own real estate in Mexico, you won’t have to show a higher amount of funds, as these numbers reflect the need for rental accommodations. Many ex-pats relocating to Mexico rent for six months to one year before purchasing to make sure the community and general region are right for them.
Hire Relocation Consultants
Think of relocation consultants as a more advanced and personal form of the typical moving company. Relocation consultants will not only help you to pack up your belongings and move to your new real estate in Mexico; they can also handle preparing your new home for your arrival. Many American expats who are now living in Mexico recommend using this service, as it’s a great way to move into your new real estate in Mexico without experiencing any hiccups or interruptions.
Adapt to the Local Culture
If you’re using your real estate in Mexico as a primary or even secondary home, it’s going to take some time to get used to your new surroundings. Don’t expect to get used to the Mexican way of life at once; instead, get to know the city or beach community where you’re living. Try out the different restaurants in your area. Invite your neighbors over for dinner. Go on a vacation and explore some of the wonderful tourist attractions that are within a day’s drive from your new home. If you’re having trouble with the language, enroll in a language course at your local university so you can brush up on your speaking skills.
If you ever feel uncomfortable or awkward with the local traditions and customs, don’t be afraid to ask a neighbor or friend for help. Mexican people are extremely friendly and accommodating by nature, and will be more than happy to help you get used to the change of lifestyle pace. With a bit of practice, you’ll be living like a local in your real estate in Mexico in no time at all.
Thanks to a booming economy, cheaper healthcare and a more relaxed pace to living, buying and owning real estate in Mexico has become a dream for potential property owners the world over. Additionally, as exchange rates still favor American and European currencies, it’s much cheaper to buy a sprawling property within Mexico, as opposed to in America. This means that moving up on the property ladder isn’t just a far-fetched dream; it’s a close reality. If you’re interested in purchasing real estate in Mexico, be sure to enlist the assistance of a Mexican attorney and a bank that will help you finalize the sale.