Can I own real estate in Mexico ?
Hello, I am Alfonso Poncho Davalos, Real Estate Agent in Puerto Vallarta and Riviera Nayarit. I am always asked to explain how foreigners can own real estate in Puerto Vallarta, Mexico. This topic is one of the most commonly asked questions. There is a lot of misinformation on Facebook groups so let me give you the correct answer.
Puerto Vallarta is located in the restricted zone, which is property 50 km from the coastline and 100 km from the border. A non-Mexican citizen or foreigner must purchase and own real estate in Mexico through a Fideicomiso or Mexican Trust. In this case, you will be represented by a bank that will hold the title of the land in trust and you will be the beneficiary of the trust. The trust term is 50 years and after it expires, there is a simple process to renew the trust; the annual cost for a Fideicomiso is between $464 USD to $600 USD depending on which bank holds the trust. Most of the trusts in Puerto Vallarta are with Banco Monex and Banco del Bajio. So yes, a foreigner can purchase and own property in Puerto Vallarta, Mexico.
I took a friend of mine to pay his trust fee to Banco del Bajio and expected a long wait in line. However I was surprised to discover the bank had a particular area to pay the fideicomiso, located on the 2nd floor of the bank with an independent entrance. Also remember your first annual fee is including in your closing costs. Therefore you need the next payment on the anniversary of your closing, for example, if you close your property on June 5, 2021, your next payment is due June 5th,2022. Be aware that not all the banks send you a notification to pay. So make a note in your annual reminders to know and be aware; each bank has its policies about interest to be charged if you don’t pay on time. I recommend you ask your closing coordinator about this process with the bank you have.
If you have any questions regarding owning property by a Mexican trust, contact me via my website or e-mail: alfonso.davalos@theagencyvallarta.com
