Acquisition & Entry
Can a foreign national acquire real estate in Mexico?
Yes. Mexican law permits foreign investment in real estate through legally recognized structures. Within the restricted zone — fifty kilometres along the coast and one hundred along the borders — foreign individuals hold residential property through a fideicomiso, a bank trust administered by a Mexican financial institution. Outside that zone, direct ownership is generally available.
What is the restricted-zone fideicomiso, and when is it required?
A fideicomiso is a bank trust through which a foreign investor holds the rights to property within the restricted zone, in compliance with Mexico’s constitutional ownership provisions. The institution holds title as trustee; the investor directs use, enjoyment, sale, and inheritance. It is required for foreign residential acquisitions inside the restricted zone.
When does acquiring through a Mexican corporation make sense?
For non-residential or commercial purposes, a foreign investor may hold restricted-zone property through a Mexican company rather than a trust. The right vehicle — trust, corporation, or a combination — depends on the property’s use, the number of assets, and the investor’s tax position. Corporate-form selection is a structuring decision, not a formality.
What are the risks of ejido (agrarian) land?
Ejido land is governed by agrarian law and differs fundamentally from privately titled property. It cannot be treated as ordinary real estate until duly regularized, and its legal status and documentation must be examined carefully before any transaction. Mistaking agrarian land for private property is among the most consequential errors a foreign buyer can make.
What does proper due diligence cover?
Beyond confirming title, due diligence examines the chain of ownership, encumbrances and liens, zoning and land use, federal-zone and environmental status, tax standing, and compliance with anti-money-laundering and foreign-investment registration requirements. It is the difference between an assumption and a verified position — and it is completed before closing, not after.
Development & the Coast
Who owns the beach — what is the Federal Maritime-Terrestrial Zone (ZOFEMAT)?
Beaches and the strip adjacent to them form part of the Federal Maritime-Terrestrial Zone (ZOFEMAT), administered by federal authorities. It cannot be privately owned; it may only be held under concession, and only on conditional terms. Beachfront projects depend on the correct concession being in place and properly maintained.
What permits does a coastal development or condominium require?
Coastal developments and condominium projects involve permitting at several levels — construction and land-use authorizations, environmental and federal-zone clearances, condominium and homeowners’-association governance, and, for pre-sales, compliance with PROFECO and properly structured pre-construction contracts. Whether a project may proceed, and whether it endures beyond review, depends on these being correct from the outset.
Holding, Tax & Residency
How is a sale (disposition) taxed — ISR / capital gains?
A disposition may generate income tax (ISR) on the gain. The amount turns on residency status, the documented acquisition value, documented improvements, and any exemptions for which the seller qualifies. A sound tax position rests on documentation assembled in advance — not on assurances given by third parties at closing.
Do I need residency to invest or hold property?
No. Holding property through a fideicomiso or a Mexican company does not require residency. Residency is a separate, migration matter, which may become relevant for those who relocate or conduct ongoing business in Mexico.
Counsel & Disputes
Does the notary represent my interests?
No. The Mexican notario is a public official who authenticates and formalizes the transaction; he does not represent either the buyer or the seller, nor advise on whether the structure serves your interests. That role belongs to independent counsel.
What happens if a dispute arises?
The firm represents and defends the client across the matters a foreign investment can raise — documentation, regulatory, contractual, and agrarian disputes — through negotiation and, where required, litigation before the competent Mexican judicial instance. Outcomes turn on advocacy, on the law, and on the documentation built long before the dispute.
Why independent legal counsel, rather than the broker or the notary?
The broker markets and negotiates; the notary formalizes. Neither represents your interests or answers for the structure, the tax exposure, or the regulatory compliance behind the transaction. Independent counsel is the only party at the table whose duty is to the investor — and whose work is to architect, and defend, legal control.
This FAQ is general information about foreign investment in Mexico, not legal advice for a specific matter. Individuals evaluating an acquisition, development, transfer, or dispute may wish to obtain independent legal guidance on their particular circumstances.