Property
The restricted zone and the fideicomiso workaround
Article 27 of the Constitution bars foreigners from direct ownership of land within 100 km of a border or 50 km of the coast. In practice foreign buyers hold coastal residential property through a bank trust, the fideicomiso, or through a Mexican company for non-residential use.
Key rules
- A fideicomiso runs for 50 years and is renewable; the bank holds title while the beneficiary has full use and disposal rights.
- Outside the restricted zone foreigners may own land directly, subject to a Calvo clause waiver.
- Ejido land is communally held and must be formally regularised before it can be sold; irregular ejido sales are a common source of loss.
- Transfers require a public deed before a notary and registration in the state Public Registry of Property.
- The notary withholds and remits the acquisition tax and capital gains tax on the seller's behalf.
Governing law
- Political Constitution (Art 27)Restricted zone and land regime.
- Ley de Inversión Extranjera (Arts 10-11)Fideicomiso permits.
- Ley AgrariaEjido and communal land.
In practice
Always obtain a certificate of no liens and confirm the property is not ejido before paying a deposit. Notaries are strictly territorial, so use one in the state where the land sits.