| Merida and many areas
of the Yucatan are in the Restricted Zone ( ie: within 50 kilometers
or approximately 31 miles from the coastline or 100 kilometers from the
border). Foreigners may purchase property in the Restricted Zone by establishing
either a bank trust (FIDEICOMISO) or a Mexican Corporation.
The Fideicomiso is a trust agreement which is established for fifty
years and can be renewed for fifty years increments. A Mexican bank
is designated as the trustee and acts on behalf of the foreign buyer
and the bank has a fiduciary obligation to follow the instructions
given by the foreigner who is the trust beneficiary. As the beneficiary,
you have all the rights of ownership including the right to modify,
rent, sell or will the property to your heirs without probate. The
cost of establishing a trust or fideicomiso is approximately $2,500
USD. There is an annual fee based on a percentage of the value of
the property. Fees vary from bank to bank but for a house in the
$100,000 range, the fee would be approximately $500 USD.
You may also own property as a Mexican Corporation. It cost approximately
$1,500 USD to form a corporation. You will need an accountant (fees
range from $50 to $100 USD per month) to report your earnings each
month to the Mexican Government. The principal officer of the corporation
is required to have an FM3 Visa. You can either apply for the visa
yourself at Imigracion or you can hire an attorney to handle the
process for you.
Your attorney will review your purchase agreement, your deed and title
to ensure the title is clear of liens; will facilitate the creation
of your trust or corporation; review the final sales contract; collect
and pay all appropriate taxes; and record your new deed as required
by Mexican law.
We can highly recommend several BI-lingual attorneys and accountants
that can help you with either your fideicomiso, corporation or FM3.
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