How to Buy Properties in Isla Mujeres, Mexico
Can Foreigners own property in Mexico?
Yes, by establishing a Fideicomiso (the equivalent to a beneficial trust) through a Mexican bank in order to purchase real estate anywhere in Mexico, including the Restricted Zone. The buyer requests a Mexican bank of his/her choice to act as a trustee on his/her behalf. The bank obtains a permit from the Ministry of Foreign Affairs to acquire the chosen property in trust. The fideicomiso may be established for a maximum of 50 years and can be automatically renewed for another 50 years.
The bank becomes the legal owner of the property for the exclusive use of the buyer/beneficiary who has all of the benefits of a direct owner, including the ability to lease or transfer his/her rights to the property to a third party or a pre-appointed heir. During this period, the foreigner is considered as a Mexican national.
The bank trustee is responsible to the beneficiary to ensure the fulfillment of the trust, assuming full technical, legal and administrative supervision is in order to protect the interests of the beneficiary.
You can set up a foreign corporation in Mexico.
A minimum of two shareholders is required, who can both be foreign persons or companies.
In most cases, Mexican corporations choose between two forms of limited liability corporations: SA and S de RL. In the case of a service or consulting company, an unlimited liability partnership called an SC is often used or at least considered as well.
The declaration of a small amount of paid in capital, depending on the terms of the selected incorporation from which in all cases is relatively low and nothing but an accounting function. There is a set of by-laws depending on the regulations and characteristics of the selected incorporation form.
The preparation and sending of notarized and apostillized documents, bylaws and powers in the case of a corporation or only a power in the case of an individual shareholder will be handled by a Mexican attorney who will review said documents with the notary and obtain said translations by an official translator.
A Mexican attorney will confirm the corporate name, draw up the bylaws, put together required powers and translated documents, represent the foreign shareholders (companies or persons) at the incorporation with the notary and obtain the federal tax payer number (RFC) immediately after the incorporation. Then a Mexican notary will notarize the bylaws and file the bylaws with the appropriate commercial and property registration offices. If sales run through the Mexican corporation, a Mexican accountant will be needed as well for accounting and tax paying reasons.
* Laws passed in 1973 and 1993 have made it possible for Foreigners to purchase property within 64 miles of the Mexico’s borders and 32 miles from it’s coastline.
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