Purchasing Property in Mexico

Some years ago the Mexican Congress set rules for Land Ownership by Foreign Nationals in “restricted zones”. These areas are defined as land 100 kilometers from the border and 50 kilometers from the coast. Since this rule was adopted there have been some changes and modifications in parts of Mexico, but not Cozumel.

As an island, all of Cozumel is considered in the “restricted zone”. Therefore any property purchased by Foreign Nationals must be held in a “Trust of Ownership” (Fedicomiso) with a National Bank. The initial term of the trust is fifty years and can thereafter be renewed.

The Mexican Bank will administrate your trust for which you will pay an annual fee. The bank holds title in your behalf and can only act as you, the Owner (or beneficiary of the trust) directs. The trust gives the Owner the right to sell, bequeath, lease, mortgage the property as well as the responsibility for payment of taxes, assessments, dues, etc. In case of Transfer of Title, the Bank and the Owner must act jointly..