How Foreigners can Lease or Own Land in Mexico

Although foreigners may lease and own real estate and other properties in Mexico, there are several guidelines. You should familiarize yourself with these before purchasing real estate.

Article 27 of the Mexican Constitution grants Mexican ownership of the land and water within its territory and stipulates that Mexico shall oversee the transfer of ownership rights to individuals, by creating private property.

Land Ownership Rights of Foreigners in Mexico

Although Section I of this article grants the right to acquire the dominion of land and water only to Mexican individuals and companies, it also gives the State the power to grant the same right to foreigners, subject to the condition that these foreigners agree before the Ministry of Foreign Relations to consider themselves as Mexican nationals with respect to their ownership of the real estate, etc. If the covenant is breached, all rights to such property shall revert to the Nation.

Where Foreigners Can Own Land in Mexico

Foreign individuals and companies may directly own land in Mexico, except in the restricted zone. The restricted zone is described by Article 27 of the Constitution as "lands or waters within a zone of one hundred kilometers along the borders and of fifty kilometers along the beaches of the country." Land in this zone must be acquired through a trust fund established for fifty years. In this kind of trust fund the bank retains the property title but the foreigner is the beneficiary and may use and enjoy such premises and may sell or even inherit the rights to it. The bank, however, must be notified of and approve all operations regarding the property.

Land Ownership Rights of Foreign Companies in Mexico

Mexican companies with 100% foreign capital may own property directly in the "restricted zone" for non-residential purposes. There are other restrictions to be aware of when acquiring property for agricultural and forestry purposes. Foreign companies may not own property for these purposes and foreigners must observe the land size limitations.

Please note that this information is not guaranteed to be comprehensive or current. For more detailed information regarding property ownership in Mexico, please ask your nearest Mexican consulate or embassy.