Mexican government passed laws to permit foreigners, as private individuals, to buy property in the Restricted Zone through a bank TRUST or fideicomiso.
What is the restricted zone and why is it important to know about?
Properties within an area of 100 km from the border and within the strip of land from the sea to 50 km inland, all along the coasts of Mexico, is known as a “Restricted Zone”.
This TRUST, initially established for a 50 year term and renewable for an additional 50, grants you, the beneficiary, every right of Owner ship. You may use, modify, rent or sell the property. In the event of your death, the property passes to the beneficiary you have named without the necessity for probate.
The current cost of establishing a trust is about $3,000 USD, and the annual maintenance fee charged after the second year is currently about $500 USD.
The inital charge of $3,000 dollars covers the government fideicomiso fee, bank set-up fee and TWO YEAR'S management fee. Your next fideicomiso payment will be due two years from your closing date.
Charges vary from bank to bank, and the annual maintenance fee depends on the value of the property.
