10 Important Things To Know Before Investing In The Riviera Maya As A Foreigner

10 Important Things To Know Before Investing In The Riviera Maya As A Foreigner

Image title

If you have visited or heard about the Riviera Maya, you already know that investing in the area is a very smart decision.

The Riviera Maya is one of the most popular touristic destinations with millions of visitors from all over the world every year. With a great infrastructure, it counts with one of the most important international airports with direct flights to the United States, Canada and Europe.

If you are an investor the Riviera Maya is the perfect place for you, with a cheap cost of living, English spoke everywhere, the use of dollars as a currency, and a plenty of activities to do from nature to theme parks and shopping malls.

As a foreigner you can enjoy this and more, here are a few important facts to consider:

1. Can foreigners own a property in Mexico?

Yes, like any other Mexican citizen with the exception of the properties that are located within the restricted zone.

2. What is the restricted zone?

The restricted zone in Mexico refers to the properties located in a range of 100 kilometers from the borderline and 50 kilometers from the coastline.

3. Which are the legal vehicles to purchase within the restricted area?

To buy a property in this zone as a foreigner is required a Fideicomiso, also known as a Real Estate Bank Trust.

4. What is a Fideicomiso on the restricted zone?

The Fideicomiso is a bank trust, granted in a 50-year renewable term, in which the Trustee Bank holds the property in trust for the beneficial use of the purchaser (beneficiary).

The Fideicomiso is authorized via a permit issued by the Mexican Ministry of Foreign Affairs (Secretary of Foreign Relations).

5. Who is the trustee bank?

The Trustee bank is the Mexican bank authorized by the federal government to act as trustee (Fiduciario). It is worth mentioning that the properties held in trust are not assets of the bank and the size of the bank does not affect the properties they represent. In the rare case that the bank goes into financial difficulty, the property is transferred to another trustee bank; you do not need to file for a new permit in such case.

6. The parties in the Mexican real estate trust transaction are:

  • Buyer (Trustee) / Substitute Trustee (takes the place of the main trustee on in case of death, they can be cross-referenced for better protection of their rights

  • Seller (Trustor)

  • The Notary, government official who certifies the transaction as completely legal additionally signs the trust

  • The Trustee Bank represents the trustee’s interest during the 50 year period of the trust permit. Approves and signs the deed’s final draft

  • Counselors and closing agents review the draft of the act; coordinate all the parties to a closing date.

7. What is a notary?

A Notary Public is a licensed and expert attorney, certified and appointed by the state government to act as an official representative of the government. A Notary in Mexico has far greater responsibility than a notary in the United States or Canada.

8. Can I renew my Fideicomiso if it expires?

A trust is issued in 50-year increments, which can be automatically extended by an additional 50 years at the end of that term. Under current law, at the end of the combined 100-year period, you will need to apply for a new foreign affairs permit to extend the term.

9. Can I sell or rent the property?

In your agreement, you will have all the specifications regarding the use that you can give your property; this includes selling and renting. To sell the unit, this is transferring your trust right to another person; this is called a rights location.

10. What taxes are required to pay annually?

The property tax is paid by a percentage of the cadastral value of the property. Compared to the United States, in Mexico, the property tax is approximately 90% cheaper.

 IF YOU'RE INTERESTED, CONTACT ME FOR MORE INFORMATION. Nora 210-254-0283

#buyinmexico #buycondoinmexico #beach #playadelcarmencondos #playadelcarmenrealestate #condoforsale #tulum #rivieramaya #vacationrentals #developments


Jerry and Janna Burton Headshot
Author:
Phone: 214-850-9014
Dated: March 12th 2018
Views: 1,170
About Jerry and Janna: Jerry and Janna Burton joined William Davis Realty in February, 2009. Both Janna and Jerry hold busi...

Property Search









RSS Feed

View our latest blog posts in your RSS reader. Click here to access. RSS

Search Blog

Recent Blogs

Aug 6 2020 60014 1 - NEED DOWN PAYMENT ASSISTANCE?;
Jun 29 2020 60014 1 - FIRST TIME HOMEBUYERS?  Are
Apr 1 2020 60014 1 - ATTENTION POTENTIAL HOME BUYERS!
GENERAL FINANCING QUESTIONS Everything You Need To Know About Getting A Home Loan - GENERAL FINANCING QUESTIONS 

Saved Properties

This is a list of your favorite properties. We will email you if a property is reduced or leaves the market.

Click 'Save' to add a property to this list.

Register / Login

New & returning visitors please enter your information to login.

By clicking 'register' you are agreeing to our terms of use & giving us expressed written consent to contact you.

Questions? Comments? Complaints?

This message will go directly to the head of our team.

Location & Address

WILLIAM DAVIS REALTY
17732 Preston Road
Dallas, TX
214-935-2209
214-393-4733