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Restricted Zone

Today is easy and simple to buy properties as a foreigner in Mexico, even in what is known as the restricted zone. This special area covers all property within 50 km of any Mexican Coast inland, or 100 km from any border. Issues related to the history of Mexico, banned by law any foreigner obtain possession and ownership within this limit of 50 – 100 km. This belt is known as the restricted zone. Over time, and in order to attract and promote foreign investment, Mexican laws have been modified to create legal remedies enabling any foreigner to acquire immovable property within the restricted zone.

There are two simple ways accessible to anyone who wishes to acquire properties in Mexico, even in front of beach. One of them is the trust, the other is the formation of a Mexican company. The trust is used commonly when property weekends are for residential use, provided that the land does not exceed 2,500 m 2 extension (in which case, have to resort to the option of forming a Mexican company). The trust has three parties that compose it: the grantor (seller), the trustee (the buyer) and the trust (a banking institution). In its form, the legal effect of the trust is the trust to retain temporary of the immovable property and domain, and thereby complies with the provisions of article 27, fraction I of the political Constitution of the Mexican United States, which forbids foreigners to acquire property within the restricted zone. The trustee (the buyer) at the same time, is the sole beneficiary of the purpose of the trust, and as such beneficiary shall have and shall enjoy the use and possession of the property, may live in it, alter it, improve it, mortgage it rent it, sell it, transfer the benefits to another person either physically or morally, and perform any other act arising from the property.

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