Buying Property in Mexico as a Mexican Citizen

It will come as no surprise that Mexican citizens have no restrictions when they are looking to buy a home in Mexico. That is not true for Americans looking to buy a home in Mexico, though. Since Mexico has no restrictions on its citizens holding land, it gives them an obvious leg up on Americans looking to buy a home in Mexico. 

Moreover, Mexico’s economy is seeing some very positive trends that will surely boost its housing market. First, their GDP has steadily increased over the last ten years. Second, their middle class has boomed. Currently, their middle-class population is 16 million people, and an additional 3.8 million people are expected to move into the middle-class bracket by 2030, according to Global Property Guide.

This trend means a couple of things for American and Canadian investors. As the middle class in Mexico increases, this will mean more people will be able to buy and own property. Mexico has seen its nationwide housing price index rise by an average of 7% each quarter since 2021. 

This means investing in Mexican real estate could give you a great return on investment. Housing prices in America have skyrocketed and have left many people unable to afford to buy a home, but for the time being, the housing market in Mexico is still accessible for many.

Many Mexican cities have seen the highest increase in housing prices. Cities like Tijuana and Guadalajara have seen a 10% increase in real estate prices. If we see a similar trend in Mexico that we’ve been seeing in America, it is safe to assume that this will lead to suburban and rural areas increase as well.

Currently, International Land Alliance has a couple of land developments that could be the perfect investment for you and your family. First, we need to discuss the restrictions you will face as an American or Canadian buyer.

Restrictions on Foreign Buyers

Foreign buyers are currently allowed to own property in Mexico, but with a few caveats. That may be enough to dissuade you from even attempting to buy property in Mexico, but it shouldn’t. There are plenty of agencies that will help you navigate the legal hurdles you’ll face but if you’re looking to go it on your own, here are a few things you’ll need to know.

Fideicomiso

Fideicomiso is essentially a bank trust. In the Mexican constitution, it is illegal for foreigners to own land in Mexico, but in the 1970s, Mexican lawmakers were looking to entice American investment, so they set up the fideicomiso system to circumvent the constitution.  

If a foreigner is looking to buy property in the restricted zone (more on that later), then you will need to file for a fideicomiso, and this will give legal ownership of the land to a Mexican citizen. Now, don’t be alarmed. The bank or person cedes all rights of the deed to you, the owner. So any renovations, selling, or leasing is still up to you. This is only applicable within the restricted zone.

Restricted Zone

This is the area of land you will need a notary to sign your bank trust. The zone is defined as any land within 100 km of any land border and 50 km from any ocean. Seeing as all of International Land Alliance’s real estate developments are in the restricted zone, you will need to deal with a fideicomiso. Luckily we are set up in a way that we can help you clear any hurdle you may face.

If you are looking to buy and own property outside this zone, you will not need Mexican banks holding a fideicomiso. Outside this zone, you will own the escritura or deed.

Escritura

This is the most common form of a deed. For Mexican nationals, this is the type of deed most sign. In cities within the restricted zone, only Mexican citizens can own with an escritura. It is the most complete form of ownership, and for foreigners, you can own it with an escritura outside the restricted zone.

San Felipe

San Felipe is one such holding that is within the restricted zone. The coast of Mexico is beautiful, and this beachfront property of ours is very special. If you have been to Baja, you have probably been to Cabo or Tijuana. But this hidden gem is on the eastern side of the peninsula, and it is something truly special.

The town itself is one of Travel Pulse’s best-kept secrets. San Felipe is a sleepy fishing village that has amazing food and the quiet that many city dwellers may be missing.

Rancho Costa Verde

Rancho Costa Verde is a sustainable development right on the coast. It is on a slight incline from the ocean, which means every home on the property has an ocean view. 

This development is also striving to be green and sustainable, as the homes will be powered by solar energy.

San Felipe Park

The area is also renowned for its ATV and offroading trails. Moreover, the area is incredibly nature conscious, which means they hold many of their natural splendors intact for you to enjoy.

Camping in San Felipe, Mexico

San Felipe is also known for its RV sites and campsites. The outskirts of this town are desolate, which makes star gazing incredible as there is little to no light pollution.

The city is close to Sierra de San Pedro Mártir National Park, which is a part of a mountain range that cuts down the middle of Baja California. The mountains in this national park have been compared to the Alpine region of the Alps.

It is also close to Valle de los Gigantes, or Valley of the Giants. This is a protected area that is home to some of the world’s largest cacti. It is truly a surreal place to camp and visit.

Indoor Hemp

Some people have also started growing indoor hemp as Mexican law starts to relax on weed. This has become a booming industry for many people looking to gain some passive income. Visit here for more information.
If you are looking to buy a home at one of our properties, please visit us for more information.