As a foreign purchaser, it's important to understand the legal requirements and process for buying property in Mexico. Here are some key points to keep in mind:
Restricted Zone - Foreigners are generally not allowed to purchase property within 50 km of the coast or 100 km of the border without a trust (fideicomiso) or a corporation.
Fideicomiso - A fideicomiso is a trust that allows a foreigner to hold the title to the property through a Mexican bank. The bank acts as the trustee and the foreigner as the beneficiary. The trust is valid for 50 years and can be renewed.
The Trust will appoint the buyers as principal beneficiaries, which would allow them to use, enjoy and dispose of the property, meaning, there are no legal disadvantages. In addition, the trust allows the designation of substitute beneficiaries in the event of death, this will avoid probate procedures which takes time and has a high cost.