Non-restricted Properties vs. Restricted Properties
Inland homes, like those in Cuernavaca, maybe purchased by foreigners outright, without restriction
Foreigners can buy property pretty much anywhere in a non-restricted area. That is, all areas outside of the 100 kilometers that run along the northern and southern borders and 50 kilometers along the coasts.
Areas within that restricted zone – though – are subject to a bit more regulation and must be bought through a fideicomiso or bank trust. That includes everything along any of the popular sea-front areas, but it doesn’t mean that the title is not secure. Fideicomiso titles are as secure as the title to your American or Canadian home.
Though the bank holds the fideicomiso, you technically own it. And as your property is not considered part of the bank’s assets if the bank should fail, the title is simply transferred to another bank with no risk of loss to you.
Fideicomisos are valid for up to 50 years, after which time they may be renewed for a further 50 years or the property may be sold. And fideicomiso properties can be leased, sold, given to other family members, or passed on to your heirs.
We generally recommend a 25 year trust due to the lower cost of renewing the trust.
We’ve put a list of the steps and documents necessary to setting up a Fideicomiso trust here.
