What should you do when buying a home on Isla Mujeres Mexico? 
After you make the decision to buy, a first-class public notary of your choice should take charge. It is customary for the buyer to select the notary. Then a promise of sale valid for a period of 45 days is drawn up between the buyer and seller, in this time the bank trust is opened and the Public Registry of Property has to be checked to make sure that the property has NO liens or encumbrances and that the title is in good legal standing. The notary does all this and also presents the application to the Ministry of Foreign relations when the buyer is a foreigner. If everything is clear, the sale takes effect. 

What about properties located on any of the coasts of Mexico? 
The Constitution forbids direct ownership by foreigners inside thirty-one miles from the sea or sixty-two point five miles from the borders. However, they have always been permitted to buy on a trust basis. In this type of purchase, a bank is the trustee, or owner, of the real estate. The beneficiary, having all the rights to use, enjoy and sell, is not considered the owner of record. This is not a violation of what the constitution forbids. The trust is established for fifty years and can be extended for other 50 year periods. 

Are the permits that foreigners require hard to get? 
NO !!! Non-residents and tourists can buy land through a trust. If the foreigner resides in Mexico, he can acquire directly the property as long as it is not within thirty-one miles from seashores or sixty-two point five miles from the borders. 

What happens if a foreigner decides to sell after some time? 
He may do so at any time, and he should profit by the increasing value of the property over that period. 

Can the foreigner rent or sublet his apartment under the terms of these trusts? 
Yes, he may rent to anyone he desires, keeping the rent for periods not exceeding ten years at one go. 

What happens if the beneficiary dies? 
At the time the trust is set up, a substitute beneficiary is named. This person has the same rights as the first beneficiary in case of his death also. No Will is need to be probated in this case. 

How is a trust set up between the bank and buyer? 
The trust agreement is drawn up before a public notary. The Ministry of Foreign Affairs and the Commission on Foreign Investments must approve the operation first. The participants in the transaction are the seller who must have clear title to property with no liens or mortgages either on the property, the bank as the trustee, and the buyer or beneficiary on the other side. 

How much does it cost to buy properly in a trust? 
There are expenses for the authorization from the Ministry of Foreign Affairs, the registration in the Registry of Foreign Investments, and the fees of the public notary. The bank charges one percent of the amount of the transaction for the preliminary studies and the drawing up of the agreement. The total expenses for the transaction should be between 11½ % and 12½ %. In addition, there is a yearly fee of one percent of the property value charged by the bank for its services as trustee over the property and there are the minimal local property taxes that that come to .......... . 

What are the responsibilities of the beneficiary? 
He must pay the trust annual fees punctually. Also, he must pay property taxes, water, and other utility bills when due. 

Can foreign investors come to Mexico and buy an established industry? 
Yes !!! As long as they acquire forty-nine percent or less (49%) of that corporation, there is no permit needed. 

What activities are reserved to Mexican citizens? 
The new law dictates that in radio and television, urban and inter-urban transportation, gas distribution, and forestry, only Mexican individuals, or Mexican corporations with a clause that forbids any foreigners to own shares, can participate. 

Which are the activities where capital is welcome? 
In almost everything else. 

Are the percentages to be owned by foreigners inflexible? 
No. In those fields where foreign investment is permitted the National Commission on Foreign Investment might decide to increase the percentage if it is in the national interest. 

What happens with investments already made by foreigners that are not linked with foreign centers of decision? 
Foreign residents not linked with foreign interests or with foreign centers of decision are considered equal to Mexicans with respect to investments and are not subject to any percentages. 


Thank you to Mundaca Real Estate for the above FAQs