Non-nationals CAN own property in Mexico!  

Foreigners do not need legal permanency either.  Over the years we have heard many horror stories. However in reality owning property in Mexico is quite simple when the proper procedures are followed.

There are two major types of property, Ejido, and Deeded. Ejido property is the original property that was taken from the famous Haciendas and passed on to the farmers. This land was destined to be used by the natural born Mexico Citizens. This land cannot be sold as a way to make money. Therefore, it is land to be used only by Mexican Nationals. However some Aliens have acquired Ejido property by putting it in the name of a Mexican National (presta-nombre). This is always risky because you don't actually have deeded right to the property. Ejido property can become legalized (deeded), but it is a lengthy process and can take years.

Deeded property is property that is registered with the Public Registry. In this case Aliens can hold title to the property in Mexico as long as it is not in the Restricted Zone (any where within 50 Kms/31 miles of the ocean).  All foreigners that own property in Puerto Vallarta, and surrounding areas, have a bank trust (Fideicomiso). This means that the property is held in trust by a bank. The bank is not held responsible for any responsibilities from the property. You can sell, remodel, rent or lend the property at any time. Therefore, the only difference with these properties is that on the Deed is the name of the bank and the documented Alien.

Another misconception is that Non-Mexican Nationals will pay higher property taxes. In the State of Jalisco (Puerto Vallarta and south) property taxes are based on the appraised value only, not ownership. In the State of Nayarit (Nuevo Vallarta/ Riviera Nayarit, and north), taxes are assessed on the number of square meters/feet of land. The best advice you can get is from a Professional in the Real Estate Market.

We strongly advise our Clients to utilize the services of a Real Estate agent and view properties only listed by the agencies. We do not recommend viewing sale by owner properties as the ensuing problems can be extremely costly to the client. There maybe problems with the deed, the family, the price is set too high, etc. When the properties are part of the Multi-list, the deed already has been checked by a professional who has experience in this market. Buying property in Mexico is no different than buying it at home.  You wouldn't consider looking property without a qualified Real Estate agent whom you can trust and build a relationship with, and it should be no different in Mexico or any other country for that matter.