Yes you can own in Mexico!
When it comes to buying property in Mexico, the news for foreigners is good. Major U.S. insurers have recently started to provide title insurance and this has made buying property in Mexico as safe as buying property in the U.S.
In the interior of Mexico, foreigners may purchase property directly in their own names. Real estate located near coastlines or borders (which are known as restricted areas) must be purchased with a bank trust or Fideicomiso.
The bank (known as the trustee) holds the trust deed for the person or persons purchasing the property (known as the beneficiaries). This property is not part of the bank’s assets and cannot be subject to any lien or attachment for any bank obligations. The beneficiaries has all ownership rights to the property and may sell, lease, mortgage or pass on to their heirs as desired under law. A bank trust is not a lease.
You may live in, rent, remodel or sell the property and have rights to all profits.
A trust may be set up for a period of up to 50 years and is renewable indefinitely. If you purchase property currently held in a trust deed, a new 50-year period can be established or the existing trust deed may be assigned to the purchaser. Trusts are renewable at any time by simple application with the bank. It was never the intent that these properties pass back to the government at the end of the trust period. This is a common misconception and fear of most buyers.
Rental potential is also good. Net yields of 15 per cent based on 40 per cent occupancy are currently possible in some areas. This combined with 15-20% annual property value increases makes for a very attractive investment.
A taxation treaty exists between Mexico and the and the U.S. to ensure that you are not taxed twice on profits from Mexican property. We recommend that you always consult professionals for advice on taxation issues.