Have you always dreamed of owning your very own vacation home on the beach in Mexico? If so, you aren’t alone as many people would love to have a second home in one of Mexico’s popular coastal destinations such as Puerto Vallarta. In fact, more and more foreigners are buying beachfront property in Mexico’s top destinations in recent years. Some people want a vacation home, and some people are deciding to move to Mexico and retire in paradise. In case you didn’t know, foreigners can legally buy properties near the coast or borders through a Fideicomiso or Bank Trust. A Fideicomiso or Bank Trust allows a foreigner to buy property and the title is held in a bank and the beneficiary is the homeowner. To learn more, keep reading below about Fideicomisos in Mexico.
What is a Fideicomiso in Mexico?
To start with, there is a law in Mexico that states that only Mexican citizens are allowed to buy land that is close to the coast or near the border. As a result, foreigners are not able to own property by the coast or border and hold the property title in their name. However, foreigners are able to purchase Mexican real estate through a Fideiocomiso, which is also known as a Bank Trust in English. The Fideicomiso or bank trust is the legal way for non-Mexican citizens to purchase real estate by the coast or border. The property deed will be held through the bank trust or Fideicomiso with the bank itself as the trustee, and the homeowner/investor will be the beneficiary. The good news is that Bank Trust owners enjoy the same property rights as Mexican citizens. Also, as beneficiary for the property, they can designate substitute beneficiaries in the event they pass away so the property can be passed down to heirs.
How Do Fideicomisos Work?
Fideicomisos or Bank Trusts are organized with the help of a Notario. The bank trusts have a term of 50 years, and are automatically renewed for another 50 year term when the original term concludes. The process to set up a Fideicomiso is fairly simple and not that expensive. In addition, Fideicomisos allow the homeowner to designate a secondary beneficiary in the event of the homeowner’s death so heirs are not required to go through probate since the property is legally held in a bank trust. That way, non-citizens of Mexico can legally own coastal Mexican real estate or properties by the border. Remember, make sure you only work with a reputable real estate agent or trusted developer. Once an offer is accepted, an escrow account is opened with an earnest money deposit, and the title company will hold the escrow funds until disbursing the funds at closing.
Location, Location, Location
Last but not least, the location is one of the most important factors to consider when buying real estate. You can always upgrade your property or furnish it elegantly, but you can’t change the location. As a result, some of the most popular and desirable properties are located on the beach in Mexico’s top tourist destinations such as Puerto Vallarta. There, you can find older homes with charm and brand new developments that offer sparkling new homes for homebuyers. Remember, it’s best to work with a reputable developer if you are buying new construction so you won’t be disappointed down the road. Also, older homes can have charm, but many have structural issues or repairs that can become quite costly over time. Always make sure to order a home inspection to ensure there are not underlying issues when getting ready to make an offer on a property.
Now that you have read the article above, you have learned that foreigners are able to buy beachfront real estate or property near the border in Mexico as long as it is done through a Fideicomiso or bank trust. In addition, it’s important to only work with trustworthy real estate agents and reputable developers to avoid making a bad investment. Instead, take your time and carefully select a quality property that has a great location like coastal properties in Puerto Vallarta. With an ideal climate and natural beauty of Banderas Bay, beach homes in Puerto Vallarta are highly sought after. Who knows, maybe the vacation home of your dreams is in Puerto Vallarta?
About Lemuria Real Estate
Ideally situated on Puerto Vallarta’s exclusive South Shore, Lemuria Residences is a new luxury condominium complex that belongs to a Master planned community designed by the prestigious Gensler Global Architecture firm. The ecologically planned themed property includes more than 1700 acres of preserved Sierra Madre jungle with stunning views of the mountains and Banderas Bay. The outstanding onsite amenities include multiple pools, BBQ areas, restaurants, a 2000 square meter spa, Sports Club, gym, tennis courts, pickleball courts, organic herb garden, and yoga spaces. There are also freshwater rivers and private hiking trails located nearby so it’s the ideal place to invest if you want to be close to nature. Contact Lemuria Residences today to learn more about our luxury beachfront condominiums for sale in Puerto Vallarta.