Foreign property ownership in Mexico, explained: direct title or a bank trust.

Can a foreigner own property in Mexico directly?

Yes, outside the restricted zone. Article 27 of the Constitution lets the State grant foreigners the same right as Mexicans to acquire land, provided they agree before the SRE to consider themselves nationals regarding that property. Inside the restricted zone, foreigners cannot acquire direct ownership of land for any reason.

The restricted zone is the strip 100 km along the borders and 50 km along the beaches (LIE Article 2, fraction VI). Inside it, residential property goes through a bank trust. The overview: buying property in Mexico as a foreigner.

What is the Calvo clause in a Mexican property purchase?

It is the agreement a foreign buyer makes before the SRE under Constitution Article 27: to consider themselves Mexican nationals regarding that property, and not to invoke their own government's protection in matters concerning it. It is a condition of direct ownership outside the restricted zone, set out in LIE Article 10-A.

The clause concerns the property only. It is the legal basis on which a foreigner holds direct title on the same footing as a Mexican owner.

What does a foreigner file with the SRE outside the restricted zone?

Before acquiring, the foreigner agrees in writing before the SRE to the terms of Constitution Article 27 (LIE Article 10-A, the convenio de renuncia). According to the SRE, nationals of countries with which Mexico has diplomatic relations only need to file a written statement. Nationals of countries without diplomatic relations must also obtain an SRE permit.

This step comes before the deed is signed before the notary. The full buying sequence: buying property in Mexico as a foreigner.

How do foreigners own a home inside the restricted zone?

As the beneficiary of a bank trust. The SRE may authorise a Mexican bank to acquire the property as trustee under a fideicomiso, with the foreign individual or company as beneficiary holding the use and benefit of the property (LIE Article 11). The permit is for property destined for residential purposes.

A Mexican company with a foreigners' admission clause can also be the beneficiary. The trust lasts up to 50 years and can be extended on request (LIE Article 13). How it works in full: the fideicomiso, explained.

Can a Mexican company own property in the restricted zone?

Yes, but only for non-residential activities. Under LIE Article 10, a Mexican company with foreign shareholders may acquire real property inside the zone directly for non-residential use, and must notify the SRE within 60 business days of the acquisition. Residential property in the zone still goes through a bank trust.

IBG Legal describes this as companies whose bylaws admit foreign shareholders. Confirm the exact clause your company's bylaws need with a Mexican lawyer before you rely on this route.

Does buying property in Mexico give you residency?

Not by itself. No golden-visa programme appeared in the sources reviewed. Owning real estate is one listed way to prove economic solvency for temporary residence: the 2012 visa guidelines accept a public deed for property worth more than 40,000 days of the general minimum wage. Real estate is not listed for permanent residence.

The peso value of that threshold depends on which unit consulates currently apply, and consulates publish their own figures each year. Take the number from a current, dated consulate page before you plan around it.

Header photo: Lazjak, CC BY-SA 4.0, via Wikimedia Commons. All credits: image credits.