Buying Beachfront In Mexico

Posted on | February 20, 2009 | Leave a Comment

Looking for beachfront in Mexico? here are some things your should know.Â There are restrictions affecting landÂ near the border and coast. These areas are called the “restricted zone”, and covers landÂ within 100 kilometers of any Mexican border and within 50 miles of any Mexican coastline.

Originally the “restricted zone” was created to protect Mexico from foreign attack. The goal was to keep any foreigner from owning land that could be used to bring in an army and launch an attack on Mexico. This was written into the Mexican Constitution in Article 27. The constitution was signed in 1917 and made a lot of changes to who could own property.Â

From a brief lookÂ at this section of the Mexican constitution from, it appears the governmentÂ took a lot of land away from people. It changed the concept of land ownership to one where the government actually owns all the land and even though they sell it to individuals for use, the government can get it back if they want it. But this doesn’t happen very often and when it does it is similar to what happens in the U.S. when they put in a highway through an area that used to be private property–the government has to pay a reasonable price for the land.

Other than the “restricted zone” foreigners can own land subject to Mexican law. Just because you are a U.S. citizen doesn’t mean the land becomes U.S. property. It is treated just like a Mexican citizen owned it.Â

If you are looking to buy property in Mexico keep in mind that there is no type of real estate license required. Anyone can sell real estate and there isn’t any type of code of ethics that they all agree with. You will want to work with someone trustworthy.

If you want to purchase property in the “restricted zone” there are ways to do it. The Mexican government knows that selling land on the coast is a great way to bring in money not just for the sale of the property but for the local economy. U.S. citizens coming to Mexico and spending lots money are a great way for the country to profit financially. However since the law about the “restricted zone” is written into the constitution it would take a lot of political work to change.

The Mexican government came up with a way to work around the constitution. You can create a legal entity in Mexico and use it to buy the land. Since the land is owned by a Mexican entity, this fulfills the constitutional requirements. If this entity is a trust, a foreigner can be named as the beneficiary. The trust is administered by a Mexican bank which is obligated to act on the behalf of the beneficiary of the trust.

So if you’re considering buying property somewhere in Mexico, get some professional help from a local, reputable firm, to help navigate the legal requirements.