Can a Foreigner really own property in Mexico?  

The first question people usually ask about buying Mexican real estate is whether they can actually do it.   The answer is yes... many non-Mexicans have purchased property here.  Over 600,000 foreigners already own property throughout Mexico and since the change in the Foreign Investment Law in December 1993, foreigners can now own land in the formerly restricted zones - within 30 miles of the beach and 50 miles of the border - through a Fideicomiso (Trust).

Purchasing Real Estate in Mexico
While it is true that in years past the Mexican government have not allowed foreigners to buy property, this is no longer the case.  Although there are restrictions, foreigners can buy property, and they will receive either a simple-fee title or a trust deed allowing them to sell the property or will it to their heirs if they so choose.  

In years past, buying real estate was always a cash transaction, but now home mortgages are available to qualified buyers; some of these mortgages are offered by Mexican companies, but some are offered by American companies.  Interest rates are generally higher than for loans on U.S. property, and there are other fees attached, but mortgages do allow people without a large lump of cash to buy property.  

How it works

Foreigners acquire irrevocable and absolute ownership rights to property in Mexico through a 50-year perpetually renewable and transferable Bank Trust called a Fideicomiso. This Trust is a legal substitute for deeded (commonly referred to in the U.S. as fee simple) ownership and is provided specifically for non-nationals to own property in the formerly restricted zones (border and beach areas.) The Trust system of ownership is sanctioned by the Mexican government, provided for under the Mexican Constitution, and secured by the Central Bank of Mexico; thereby offering powerful protection. 

If you take reasonable precautions and work with professionals, you will have a happy ending for your purchase of Mexican property.