Selva Escondida has been building communities in Puerto Morelos since 2019. We have completed five residential communities, delivered over 700 keys to new homeowners, and created thousands of stories. Many of those were foreigners. Here is what you need to know as a foreigner buying property in Mexico.

It is legal for foreigners to own property in Mexico

Your dream of owning a piece of paradise in the Caribbean is possible, and it is legal. You do not need residency to purchase one of our homes or condos. Although the Mexican constitution was initially written with restrictions on foreigners owning properties, the government has put amendments in place to encourage foreign investment.

The Land Trust that makes ownership possible

Initially, there was a restricted zone defined as property within 60 miles of any border or within 30 miles of any coastline, including the real estate in Puerto Morelos. To attract investors to Mexico, The government put in place something called a fideicomiso, which - although different from the process of buying property where you are from - is completely legal and binding.

This is a provision put in place by the government of Mexico because it wants to encourage foreign investments. It is basically a real estate trust. It is legally binding and benefits the investor and the Mexican economy.

This type of trust is similar to those used in the United States, but a Mexican bank must be designated trustee. The trust ‘holds’ the property for the foreigner, and the bank follows instructions given by the foreigner, who is the trust beneficiary. The trust beneficiary enjoys all the rights of ownership that a Mexican citizen would. It is NOT a lease; you have permanent control over your property to use, rent, sell, make improvements, and designate beneficiaries.

The Fideicomiso protects the homeowner

Banks acting as trustees are federally approved to hold real estate trusts. And before they assign a Fideicomiso to a property or even work with a land developer, they perform a legal study to be sure you will not run into any issues regarding ownership or money owed later on. The banks charge an initial setup fee of approximately $2200 USD, and there is an annual fee of approximately $550 USD per year.

You have all the same rights as a property owner in your home country

The Trust is a legal substitute for simple ownership. As the beneficiary, you can sell your property without restriction. You may also transfer your rights to a third party or designate an heir. You have the same rights as a Mexican citizen regarding matters involving your property.

The title is yours, and your investment is secure

These trusts are NOT considered part of the bank’s assets. The trust must be transferred to another approved bank if a bank merges or closes. Property owned in a trust is eligible for title insurance from several reputable companies. The fact that these major companies are willing to insure properties held in trust shows they are legitimate and secure.

The Mexican government cannot take your property

Some people believe that the Mexican government can randomly seize property. This is false. Under the North American Free Trade Agreement (NAFTA), Mexico may not take land except for a public purpose, such as building a road. If this were to happen, they would be required to pay the market price for the property. This is similar to laws in place in Canada and the United States. Since Selva Escondida is a gated community nestled in the jungle, this issue is unlikely to arise.

Many people have made the dream a reality

Be assured that you are not the first Americans or Canadians to pursue the dream of owning property near our beautiful Caribbean shores. There is a thriving ex-pat community in Puerto Morelos who were once just like you, wondering if it was possible. They made the dream a reality, and so can you. And keep in mind that when you purchase a property with Selva Escondida, we have a closing department dedicated to assisting you in closing on your new home legally. 

We can’t wait to help you come home to paradise.