By Linda Neil, A.B.R.
Foreigners who wish to make money through the purchase of vacation or retirement homes and condominiums on beautiful Mexican beaches or along the U.S. and Belize borders do so through a Mexican bank trust, or fideicomiso.
Article 27 of the 1917 Mexican Constitution, prohibits foreigners from acquiring fee simple title to residential real estate in areas referred to as “restricted” zones. These restricted zones refer to any land: within 30 miles (50 km) of any coastline or 60 miles (100 km) of either border. Also included in this zone is the entire Baja Peninsula.
The fideicomiso law, providing a legal, simple and safe circumvention of the constitutional provisions was established in 1973. The trust places legal title in the name of a Mexican bank under a permit from the Secretary of Foreign Relations, so the bank may administrate the property on behalf of the buyer/beneficiary, who…
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