Can I Legally Own Beachfront Property in Mexico?

The answer is yes!  You can absolutely own beachfront property in Mexico through a bank trust!  Some may be familiar with what a bank trust is while others may seem lost about the process.  I should mention that having a good real estate agent can be a sincere asset to you to educate you and help you to understand every aspect of owning real estate in Mexico.

Let’s start with why you need to obtain a bank trust!

By law there is a designated restricted zone for foreign buyers.  The restricted zone is any area of land that is 30 miles away from the coastline or 60 miles from any international border.  This is a law that was put into constitution many years ago but after Mexico started to see the demand and high interest from foreign buyers they had to come up with a way to allow someone to own property without breaking the constitution.  This is how the bank trust came into play!

What is a bank trust?

Since the Mexican law does not allow any foreigner to hold the title to property in the restricted zone the buyer can go obtain a bank trust in which the bank will hold the title with you being listed as the main beneficiary. 

This sometimes can sound scary to people but in reality you have full rights and ownership to the property.  The bank cannot take your property for any reason neither can they make changes or dictate how you can handle it. They have no rights to the property!  They just simply hold the title!  You, as the main beneficiary, have every right to do what you please with your home just as if you were holding the title yourself!

What do I need to do to set up and maintain the trust?

You will need to review all this information with the bank and your real estate agent in Mexico but quite simply you will need to pay your set up fee and then a yearly fee to maintain the trust.  This will allow you to own your home free and clear!

Good News for the future?

There are new laws that are currently under review which may soon allow foreigners to directly hold the title. We don’t know exactly when this will take effect but we are hopeful that this will be good news for buyers in the future.

Additionally, even when the law gets passed you will still have the option to consider getting a bank trust anyways.  It is still expected that having a bank trust can give you some added benefits.

For more information on bank trusts and how to buy safely in Mexico click here!  .

The TOP Mexico Real Estate Network; “Mexico’s Leading Network of Specialists for Finding and Purchasing Mexican Properties Safely!”