Foreign Property Ownership: Mexico Set to Change Restrictions..!

Mexico is on course to change the rules that restrict foreign buyers from buying property on coastal plots & its borders. The lower house of congress has voted to loosen the longstanding restrictions.But, change still needs to be approved by the Senate and by Mexico’s 32 state legislatures. Now, the only way foreigners can buy much sought after beachside property is through front companies as Article 27 of the Constitution prohibits non-Mexicans from directly owning land within 31 miles of the coast and 62 miles of the nation’s borders. That means buying a property through Mexican companies or / real estate trusts which then lease the property back to its foreign occupant for an annual fee. It is though that between 2000 & 2012 about 49,000 foreigners bought beachside property this way but the time involved & extensive paperwork has put off a lot of overseas buyers and there is a lot of support for change. The change would allow foreigners to buy beachside property for residential purposes. But, they would not be allowed to buy commercial property.

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