Manzanillo is one of Mexico's best kept secrets. Every year the property values and tourism rates are going up in Manzanillo. Much confusion exists when it comes to buying land in Mexico. Especially when it comes to owning owning property in the "restricted zones" like close to the beach, and near the borders, Manzanillo included.
As experienced real estate owners in Mexico, let us clear up a few misunderstandings about owning real estate in Mexico. We've done this before, so following these instructions will make it as easy and quick as possible. We pretty much know how the process works and understand the reasons for this method of property ownership, so here is a partial explanation for the trust method of property ownership in the "Coastal Zone" of Mexico.
The laws have shifted considerably. No longer is owning land in Mexico out of the realm of possibility to foreigners. It's still not unusual to have someone emphatically exclaim that "you can't own property in Mexico", or that "you have to have a Mexican partner on title to own property in Mexico". Let us show you the facts to clear up any misconceptions that you may have.
Reality is often different than the perception:
Once upon a time the government did not allow foreigners to buy land in restricted zones (within 50 km. of the ocean, border etc.) because they were worried about being taken over by foreigners. Once a law is included in the constitution of Mexico, it cannot be changed. During this period in Mexico's past, people who loved Mexico and wanted part of it for themselves, tried (sometimes with bad results) to own property.
Next came the Fideicomiso, a land trust system that allows newcomers to Mexico to own land (excluding Ejido land) in previously off limits territory (Manzanillo included). Not unlike a trust created in Canada or the USA where assets are lodged in the trust and held for the exclusive use of the beneficiary, your Mexican trust holds the property deed for the sole benefit of you, the beneficiary. Your property is then yours, and you can build as you desire. You can occupy, rent, sell, develop, lease, etc. at your discretion. It's a good idea to get a trust document for your property as you can legally say who will receive the property in the case of your passing on.
There are a couple disadvantages to getting land this way including a slightly higher price for the land trust and the yearly fee that you have to pay to the bank holding your documents. I look at this fee (tax on us) that Mexican's do not have to pay, as a part of the price we pay to enjoy all that Manzanillo has to offer.
Even in a restricted area, owning land is a cinch and you are not required to be a Mexican national to do it. The regulations pertaining to purchasing real estate are different than ours, however the results are the same. It might be a little aggravating at times, but it is very complete, providing a shield for the investor and seller. Procedures are very important and indeed vital to follow, make sure your notary knows and abides by them.
Hope this helps and that it answers more questions than it raises. There is lots of information on trusts in different publications and on the internet, most of which is factual. Most important for you to know now is that, other than the time needed to make a few trips to the Notary, this purchase (we sincerely hope) for you should be painless and efficient.
As experienced real estate owners in Mexico, let us clear up a few misunderstandings about owning real estate in Mexico. We've done this before, so following these instructions will make it as easy and quick as possible. We pretty much know how the process works and understand the reasons for this method of property ownership, so here is a partial explanation for the trust method of property ownership in the "Coastal Zone" of Mexico.
The laws have shifted considerably. No longer is owning land in Mexico out of the realm of possibility to foreigners. It's still not unusual to have someone emphatically exclaim that "you can't own property in Mexico", or that "you have to have a Mexican partner on title to own property in Mexico". Let us show you the facts to clear up any misconceptions that you may have.
Reality is often different than the perception:
Once upon a time the government did not allow foreigners to buy land in restricted zones (within 50 km. of the ocean, border etc.) because they were worried about being taken over by foreigners. Once a law is included in the constitution of Mexico, it cannot be changed. During this period in Mexico's past, people who loved Mexico and wanted part of it for themselves, tried (sometimes with bad results) to own property.
Next came the Fideicomiso, a land trust system that allows newcomers to Mexico to own land (excluding Ejido land) in previously off limits territory (Manzanillo included). Not unlike a trust created in Canada or the USA where assets are lodged in the trust and held for the exclusive use of the beneficiary, your Mexican trust holds the property deed for the sole benefit of you, the beneficiary. Your property is then yours, and you can build as you desire. You can occupy, rent, sell, develop, lease, etc. at your discretion. It's a good idea to get a trust document for your property as you can legally say who will receive the property in the case of your passing on.
There are a couple disadvantages to getting land this way including a slightly higher price for the land trust and the yearly fee that you have to pay to the bank holding your documents. I look at this fee (tax on us) that Mexican's do not have to pay, as a part of the price we pay to enjoy all that Manzanillo has to offer.
Even in a restricted area, owning land is a cinch and you are not required to be a Mexican national to do it. The regulations pertaining to purchasing real estate are different than ours, however the results are the same. It might be a little aggravating at times, but it is very complete, providing a shield for the investor and seller. Procedures are very important and indeed vital to follow, make sure your notary knows and abides by them.
Hope this helps and that it answers more questions than it raises. There is lots of information on trusts in different publications and on the internet, most of which is factual. Most important for you to know now is that, other than the time needed to make a few trips to the Notary, this purchase (we sincerely hope) for you should be painless and efficient.
About the Author:
The city of Manzanillo presents an unforgettable tropical break from the ordinary adventure in the Costa Alegre area and the Manzanillo properties for sale are a great investment. You have to explore this amazing area on your next Mexico family trip!
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