Yes you can!
Are you an American or Canadian looking to buy property in Los Cabos, Mexico, or anywhere in Baja? You may have heard that foreigners cannot own real estate property in Mexico, but this is not entirely true. In this legal guide, we will tell you about the most common method and how to do it safely.
Start with the basics. A little bit of history to understand why foreigners are not allowed to own realty in Mexico.
Foreigners, Americans, and Canadians included, have historically been banned from owning real estate property in Mexico. The reason for this is due to Mexico’s history of devastating invasions from other countries, including the well-known US invasion in the 19th century, which took more than half of Mexico’s land at the time. Locations like California, Nevada, Utah, New Mexico, Arizona, Colorado, Oklahoma, Kansas, and Wyoming were taken from Mexico with the US invasion.
In response to these invasions, Mexico included in Article 27 of its Constitution the famous general prohibition that “only Mexicans can be direct owners of real estate in Mexico.” This is the technical truth behind the prohibition on foreigners buying realty in Mexico.
For every rule, there is an exception. How to buy property in Baja as a Foreigner.
However, there are exceptions to this rule. In particular, there are several exceptions depending on the location of the property and the purpose of the purchase. Understanding the pros and cons of every option will allow you to decide which of the several exceptions available is the best fit for your transaction.
Undeniably, the most commonly known exception is the Fideicomiso. This exception is the popular vehicle that has allowed foreigners the opportunity to enjoy their beach home in Cabo, La Paz, Todos Santos, and all of Baja. In reality, it works by appointing a Mexican Bank to be the legal owner of the property in Mexico.
If you’re wondering whether this exception is the best fit for you, contact us to schedule a private consultation with a Los Cabos Real Estate Attorney.
The future is Mexico and the time is now: Stay safe when Buying Realty in Baja as a Foreigner.
Despite the constitutional prohibition on foreigners owning property in Mexico, foreign investment in Mexico continues to grow. Specifically, Americans and Canadians lead the list of countries investing in Mexico, and you can join them. In fact, the Mexican President reported that foreign investments grew almost 50% more in the first semester of 2022 compared to 2021.
Presently, there have been a couple of attempts to remove the prohibition of foreigners buying realty in Mexico from the Constitution. However, national security remains the strongest argument against such proposals. The single idea of strategic property, located in international borders, owned by non-Mexicans, remains highly unpopular.
Learn How to Buy Your Home in Mexico safely with the proper advise of your Los Cabos Real Estate Attorney here.
If you’re interested in buying real estate property in Baja as a foreigner, you need the proper legal advice to ensure that you do it safely and within the law. As an expert Los Cabos Real Estate Attorney, we can guide you through the pros and cons of each exception and help you decide which is the best fit for your transaction. Contact us to schedule a private consultation to guide you through the process and help you make your dream of owning property in Baja a reality.
Disclaimer: This article does not provide legal advice. It is for information purposes only. Receiving, viewing, sharing or using this information does not constitute an attorney-client relationship, nor it substitutes the need for professional legal advice.