Buying a Home in Mexico

Yes, foreigners can own oceanfront property in Mexico.

Purchasing real estate in Mexico has changed dramatically over the past decade – especially for foreign, or non-Mexican, nationals. Before 1994, buying coastal land in Mexico carried many restrictions. Since then, the federal government of Mexico liberalized ownership provisions in what has been called the “prohibited zone,” granting prospective buyers from outside Mexico’s borders greater legal freedom and ownership rights of the once restricted land, through a bank trust known as a fideicomiso.

The availability of U.S.-style mortgage loans for those purchasing in Mexico has also made buying a first or second home on the beaches of this beautiful country more appealing and easier than ever before.

What is Fideicomiso?

The fideicomiso, or trust, is the means by which foreigners can acquire ownership rights to real estate within the “restricted areas” of Mexico. The fideicomiso allows a Mexican bank to act as a trustee that can act on behalf of the foreign beneficiary in any and all transactions involving the property. However, the beneficiary retains the use and control of the property, makes the investment decisions and has the right to use, mortgage, encumber, improve, lease without limitation, sell without restrictions and pass the property to named heirs. Basically, the beneficiary has the same absolute rights to use, benefit and enjoy the property as if it were in fee simple ownership.

Why Buy Here? Why Buy Now?

International Living report ranks Mexico as #1 place to retire!

Puerto Vallarta currently represents the strongest tourism real estate market in Mexico, according to the 2008 report released by MLS Vallarta. A growing second home market, along with a lower cost of living, reasonably priced beachfront homes compared to U.S. counterparts, climate and culture are all factors contributing to the popularity of the area.

Relaxed property ownership laws, easy access via direct flights and quality healthcare are a few other reasons for the wave of baby boomers heading south of the border and, in particular Mexico, which was ranked as the number-one place to retire by International Living Magazine. And this wave, according to the Migration Policy Institute, is only expected to surge as more boomers enter their retirement years.

Why buy on Banderas Bay?

Bahia de Banderas, where Luma is located, is the largest natural bay in Mexico and the second largest in North America. The waters of Banderas Bay are protected from the inclement weather of the open seas because it faces west and is framed by the Sierra Madre mountain range. Because of its extensive coastline, Bahia de Banderas has become home to some of the most extraordinary and spectacular developments in all of North America. It is one of the top 10 locations for those seeking a primary or second home in Mexico.

Below are several resource links to assist you in purchasing a home in Mexico.

• Tax return filing guidance paper
• How Do You Say "FIRPTA" In Spanish? A Comparative International Tax Analysis For Foreign Investors Of U.S. & Mexican Real Estate (Spanish)
• Mexican Residential Trusts And The Reporting Requirements Of Section 6048
• Forms Of Doing Business In Mexico Compared To The U.S.
• Comparative Analysis of U.S. vs. Mexican Commercial Real Estate Transactions

For more specific information on owning land in Mexico and owning at Luma, please
click here or contact our Luma Sales Representatives. Toll free from the U.S. 1-866-554-LUMA. In Mexico 322-226-7290 or have a Live Chat.