Anyone looking to move, or retire to Mexico should be aware of their immigration status and the process for acquiring property in the country.  The General Population Law (GPL) states that almost any foreigner can acquire real estate in Mexico. The only exception is non-immigrant transmigrants (foreigners in transit to another country).  The Mexican Constitution states that foreigners can use and benefit from real estate in the national territory if they comply with the requisites established in Mexican law.

Governmental departments

Foreigners wishing to acquire real estate outside of the ‘restricted zone’ (mentioned below) should present a document to the Secretaría de Relaciones Exteriores (Department of Foreign Affairs) to obtain a permit.

As set out in the Reglamento de la Ley de Inversión Extranjera (Regulation of the Law of Foreign Investment / RLFI), foreigners must also:

a) Prove their legal capacity to buy property, the length of their legal stay in the country and their migratory status.

b) Annex a document detailing the surface area, measurements and boundaries of the property.

c) Pay any applicable fees.

Once a foreigner has complied with the legal requisites for buying a property, they can make use of it in any way they choose, without the permission of the Ministry.

Restrictions

The Constitution identifies a ‘restricted zone’, within which foreigners cannot directly acquire the rights to land or bodies of water.  This zone covers land within 100km of any border and within 50km of the beaches.  An important legal figure has been created, enabling foreigners to take indirect control of properties within this zone, through a trust.

About 75% of Mexican territory is regulated under a legal system of ejidal and communal property.  Foreigners do not have the legal right to acquire this type of land.  However, ejidal and communal land may be acquired by an individual or company outside of the direct community if the owners of the land have changed its legal status to that of private property.

Conclusion

The legal process for buying property in Mexico can be complex.  As in all countries, not abiding by the laws governing the purchase of property in Mexico carries diverse disciplinary measures.  To overcome any obstacles and to protect your investment capital, the process is best handled by a specialist in the area.