Financing, Fideicomiso and Owning in Mexico 2021
Own In Mexico, Cabo San Lucas
YES, YOU CAN OWN IN MEXICO, NOT JUST LEASE THE LAND. THE PROCESS IS VERY SIMILAR TO A TRUST IN THE UNITED STATES. SEE BELOW…

FINANCING IN MEXICO
Financing is very complicated and can be expensive in Mexico. Interest rates average 7-10% per annum plus thousands of extra USD in closing costs. For this reason, we offer limited financing options for resale homes. However, there are many sellers who will finance the homes they are selling for a much more reasonable interest rate. For new resort projects, the Developer often offers financing as an incentive to take advantage of pre-construction pricing. Some sellers will also offer to carry a portion of the sales price back usually for 3-7 years with a balloon payment.

NOTE: THERE IS A NEW OPTION AVAILABLE CURRENTLY FOR FINANCING, PLEASE CALL US FOR MORE INFO.

MEXICAN PROPERTY TRUSTS
(FIDEICOMISO)
In 1973, amendments to the Constitution permitted foreigners to purchase and own real estate in Mexico located within the “restricted zone” which is all land within 60 miles of a national border and within 30 miles of the Mexican Coast. This Law permitted ownership through a land trust or “Fideicomisco”.

A “Fideicomisco” is a Mexican Trust. The way it works is the Mexican Government issues a permit to a Chartered Bank of your choice doing business in Mexico. This allows the bank to act as the Administrator for the owner of the property. The bank acts as the “Trustee” for the Trust and the Owner is the “Beneficiary” of the Trust. The “Beneficiary” rights are very similar to Living Wills or Estate Trusts in the U.S.