Can Canadians own Property in Mexico?
Can Canadians own Property in Mexico?
Not only does Mexico possess a unique natural beauty, it is also very affordable, presenting its residents with a quality of life difficult to match.
Not only is it a great place to relax, it’s also a great place to invest! If you have been looking for a spot in the sun, look no further.
Whether you use it as a family vacation home, as an investment property, or for your retirement, Mexican real estate listings should be at the top of your list. And don’t worry, this dream isn’t just reserved for others.
Canadians can buy Mexico real estate too!
Mexico is popular with tourists, snowbirds and retirees for many reasons. Whether for vacationing, dodging the sleet and snow or simply for enjoying your golden years on the beach, Mexico's appeal runs deep.
Mexican beaches are world-renowned for their beauty. Mexico's vibrant culture and delicious food are two other important reasons why people fall in love with this country, but, above all, people flock to Mexico for the beach life. Its vast amounts of stunning coastline make Mexico an unbeatable destination for sports like surfing, snorkeling, scuba diving and fishing.
Mexico's low cost of living is also a big attraction. Regular expenses like food, transportation, entertainment and professional services are much cheaper than they would be in Canadian and American cities, which means that a relatively small budget can take you a long way in Mexico.
For expats, travelers and tourists, another reason Mexico is so popular is their simple travel policies that make it easy to spend time there. Canadian and American citizens can stay in Mexico as tourists for up to 179 days without a visa. Also, the abundance of flights to and from major cities in Canada and the United States make it easy to travel to Mexico without the need for elaborate planning.
Buying Property in Mexico in 5 Easy Steps
Although in the past buying prime real estate in Mexico was impossible for foreign nationals, the Mexican real estate market is now open for business. For Canadians, buying houses for sale in Mexico is easier than ever.
That said, the process is even easier with the help of a qualified real estate agent that specializes in connecting buyers with their dream property.
Here is how it breaks down:
After finding the right property, the first step is making an initial offer. Roughly equivalent to a "promise to purchase" that is part of most real estate transactions in Canada, your initial offer lets the seller know of your intention to purchase, as long as it meets your conditions.
After your initial offer is accepted, the next part of the process is the promissory agreement (contrato de promesa de compraventa). This document goes a step further than the initial offer by setting a timeframe for the buyer and seller to finalize the purchase. But this legally-binding document does not encompass the final sale. Once the negotiations are over, the promissory agreement outlines all the relevant details of the transaction.
In order for a foreign buyer to acquire Mexican property within the restricted zone - defined as anywhere within 50km of the coast or 100km of the border - a trust agreement sanctioned by the government through an authorized bank is required
Known as a fideicomiso, this agreement confers all the property rights of a Mexican citizen to a foreign national, allowing them to rent, lease or sell their property. Although through this legal arrangement it is technically the bank that holds the property title on your behalf, foreigners are the official owners of the property, and retain all the same ownership rights as a Mexican national. For example, any changes to the property titling has to be approved and validated by the owner in writing.
In order to set up a fideicomiso, you will have to apply for the appropriate permit through the Ministry of Foreign Affairs and register with the Public Registry of Property and the National Registry of Foreign Investment.
With the guidance of your real estate representative and lawyer, this part of the process will be easily navigated. To learn more about it, check out our complete guide to buying property in Mexico.
Final Walkthrough and Delivery
After your real estate agent and lawyer get all the documentation in order, the next step is the final walkthrough of your new property. Although the sequence of events might seem strange to some, the property is delivered before the title is transferred to your fideicomiso.
Once you inspect the property and everything is to your satisfaction, a signed delivery statement will confirm the official delivery date of your property.
Following the delivery statement, the remaining closing paperwork will be prepared, and you will receive a notice for the final due date of the closing costs. Once these have been taken care of, the title will be officially transferred to your fideicomiso, and the local public registry will provide the final deed.
Mexican Real Estate is Within your Reach
If you are looking to buy property in Mexico, there are several regions on the Yucatan peninsula you should check out first. This area of the country is home to many of the most idyllic and peaceful regions of Mexico, and it is close to the island nations of the Caribbean, as well as South America, which also makes Yucatan real estate the perfect jumping off point for wider travel.
Many people are already familiar with the real estate in Cancun, which is a legendary vacation destination. Not far away from Cancun, in what was a small fishing village not long ago, the real estate in Playa del Carmen has been a hot commodity for some time, and is set to make a name for itself on the global travel scene following many consecutive years of steady growth and development.
Buying Property in Mexico, Simplified
As you can see, there are some steps to buying property in Mexico that might be unfamiliar to most Canadians and Americans, but this route can be easily negotiated with the guidance of an experienced and qualified real estate representative.
Whether for a vacation home, a place to retire or an investment property, buying property in Mexico is one decision you will never regret.