Q: Is it legal for foreigners to own property in Mexico?
A: Yes! Under Mexican law, specific requirements exist for foreign ownership of property in the restricted zones. The Bank Trust is the primary and 100% secure way for foreigners to own land. The bank trust holds the deed of property and states the foreigner as the beneficiary. Trusts are good for 50 years and are then renewed.
Q: Can the Mexican Government confiscate my land?
A: Foreigners often worry about their land being expropriated by the Mexican government. Under the North American Free Trade Agreement, NAFTA, Mexico may not directly, or indirectly, expropriate property except for a public purpose. This is the same as "Eminent Domain" in the U.S. Where it is necessary to expropriate land, swift and fair market compensation must be paid, together with accrued interest. If a property is owned / leased via a Bank Trust it is not Ajido or public purpose loan so an not be expropriated by the Mexican government.
Q: In the event the holding Bank should ever fail, be bought by an unauthorized Bank, etc., what happens to the Fideicomiso?
A: The Fideicomiso will be transferred to another authorized Bank. The Bank does not own the Fideicomiso, you do!
Q: Can my family inherit my property?
A: Yes! Inheritance in Mexico is actually easier than in the U.S. since the property can be inherited directly without the delays and expense of probate as long as a will is in place. There is no inheritance tax in Mexico as long as a will exists.
Q: Can I legally own property without a bank trust if I have an FM2?
A: No, the only way a foreigner can own property in Mexico without a bank trust is to become a Mexican citizen or to have a Mexican Corporation.
