MOST FREQUENTLY ASKED QUESTIONS

Can I acquire real estate in Mexico, as a foreign national?
As a foreign national, you can acquire real estate outside the restricted zone (100 kilometers along the borders and 50 kilometers along the coastlines), prior execution of the corresponding agreement with the Department of Foreign Affairs. Outside the restricted zone and for residential purposes, rights on a real estate may be acquired only through a Trust.

How much land can I acquire as a Beneficiary of a Trust?
Up to 2000 square meters. If you acquire in excess of said amount, you will have to execute a commitment for investment with the Department of Foreign Affairs.

As a foreign national, can I purchase ejido or colonization land?
Yes, provided the ejido member or colonizer has followed the procedure to obtain fee simple and the National Agrarian Registry has issued the corresponding documents and theses are registered in the corresponding Public Registry of Property.

Can I acquire units in a condominium or premises in a time share?
Personal rights for the use and enjoyment of condominium and time shares can be acquire within the restricted zone. In both cases, the establishment of the condominium ownership or time share system shall be formalized before the Notary Public in a notarized document and registered in the corresponding limitations set forth in the trust or time share system agreement, as well as in condominium ownership regime. In Sonora There are laws regarding condominiums and time shares.

What taxes do I pay in Mexico?
As beneficiary, I am committed to pay property taxes on the real estate and in case of the assignment of beneficiary rights and obligations, income taxes in case of the assignor, and transfer of ownership taxes, in case of the assignee. Whenever the beneficiary leases the real estate object of the trust or uses it for lodging purposes, said beneficiary shall have fiscal obligations that include registering at the Treasury Department and paying the corresponding taxes, always with the trustee’s consent.

Can I change the beneficiaries designated in the agreement?
Yes, in case of holders, through an assignment of beneficiary rights agreement, executed before a Mexican notary public as a notarized document, with the Bank’s prior approval. In case of substitute beneficiaries, through an amendment agreement, executed before a Notary Public as a notarized document, with the Bank’s prior approval.

Does my marital status (married or single) affect the clauses of the trust agreement?
When beneficiaries of a trust are married, it is convenient to designate the surviving spouse as the substitute beneficiary, thus avoiding succession proceedings.

What happens in case of a divorce?
If the divorce takes place abroad, the divorce decree shall have to be executed and validated in Mexico, so that the corresponding settlement may be notified to the Trustee (Bank) and thus, the corresponding beneficiary clauses may be modified.

What happens in case of death?
If a substitute beneficiary has been designated, the procedure that has been set forth in the agreement is followed. This procedure generally consists in delivering the original death certificate to the trustee, so the latter may modify its registries and may notify the Department of Foreign Affairs and the National Foreign Investment Registry of said change. When no substitute beneficiary has been designated in the trust agreement, the succession proceedings shall be conducted in the Country of origin of the deceased, so that the corresponding decision may be executed in Sonora and notifies to the Bank. The succession proceeding can also take place in Mexico for said purposes.

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