Yes, a USA or Canadian citizan can own real estate in mexico by placing the property in a bank trust.
The cost to establish a Bank Trust with the Trustee bank will vary depending on the bank and depending on what type of trust you will hold, but typically the cost will be between $1,500 – $4,000.
Yes. The bank charges an annual fee to cover its services. This fee will varie depending on which trustee will hold the title, but typically between $350 – $700 a year.
The Mexican Constitution prohibits non-Mexican Citizens from owning title to property along waterway and borders which is called the Restricted Zone. Recognizing the importance of foreign investment, the Mexican legislature passed the foreign investment act which allows non-Mexican Citizens to own title to property through a Mexican Real Estate Bank trust. A Mexican Bank is Trustee(usually owned by a mutli-national bank) of the trust, the trust then holds the deed to the property for the owner’s benefit. The trust is administered for the benefit of the owner (the beneficiary).
Three parties are involved in a bank trust. The seller of the property is the Trustor, the bank is the Trustee, and the buyer is the Beneficiary.
Yes, you can sell it. If the buyer is also a foreigner, you can simply assign beneficial rights. If the new buyer is a Mexican National, you can also instruct the bank to endorse the title in favor of the buyer.
The buyer pays the transfer of acquisition tax and all other closing costs, including the Notary’s fees and expenses, while the seller pays his capital gains tax and the broker’s commission.
Transfer Tax is 2% of the sales price.
The closing process on average will take approximatley 45-60 days if the existing trust and paperwork is in good order.