Real Estate in Playa Del Carmen
Playa Del Carmen is unparalleled in so many ways. Of increasing popularity is touring and obtaining real estate in Playa Del Carmen. There is a lot of confusion out there about owning property in Mexico. Especially when it comes to owning owning property in the “restricted zones” like close to the beach, and near the borders, this area included.
As experienced real estate owners in Mexico, let us clear up a few misunderstandings about owning Mexican real estate. We’ve done this before, so following these instructions will make it as easy and quick as possible. We pretty much know how the process works and understand the reasons for this method of property ownership, so here is a partial explanation for the trust method of property ownership in the “Coastal Zone” of Mexico.
The mistaken belief of many is that if you are not a Mexican, you cannot buy real estate in Mexico. It’s still not unusual to have someone emphatically exclaim that “you can’t own property in Mexico”, or that “you have to have a Mexican partner on title to own property in Mexico”. Don’t believe everything you hear. These preceptions are wrong, and misinformed.
Don’t believe any of it. Here is the truth:
At one time the Mexican Government prohibited foreign nationals from owning land in the restricted border zones (within 50 km. of the ocean, border etc.) because they were concerned about being taken over by foreigners. Land Trusts (Fideicomisos) have been put into the Mexicn Constitution, and cannot be altered. This period of time is what spawned many of the confusions and fears for owning land in Mexico, as many who tried were burned badly.
The Government has since introduced a system of Land Trusts so we can own our own piece of paradise on the ocean in Playa Del Carmen or anywhere in the restricted zones (Ejido land excluded - more on this another time). Not unlike a trust created in Canada or the USA where assets are lodged in the trust and held for the exclusive use of the beneficiary, your Mexican trust holds the property deed for the sole benefit of you, the beneficiary. You have the right to do anything with the property (within the law of the local jurisdiction of course). You can occupy, rent, sell, develop, lease, etc. at your discretion. One advantage of the trust is that when creating the trust document for a specific property, you lay out your beneficiaries upon you death, eliminating the need for a Mexican Will.
The disadvantages include the cost of making the real estate fideicomiso (only slightly more than Mexican’s pay to create a new deed when they buy) and secondly, the annual fee payable to the bank that keeps the fideicomiso for you. I look at this fee (tax on us) that Mexican’s do not have to pay, as a part of the price we pay to enjoy all that Playa Del Carmen has to offer. This ‘payment of yearly trust fee’ certainly makes for good discussion at margarita time.
Mexican real estate laws do not force you to be a resident of the country before you can own land. The regulations governing purchasing land are different than other countries, but the results are the same. The fideicomiso system is complete, if inconvenient, and it makes buying and selling property in Mexico safe and secure. When the time comes, make sure you use a good Notary that adheres to the proper procedures. Ask questions!
This should clear up most questions about the topic. There is a wealth of info and misinfo on trusts in the internet. Be sure to check your facts. The only real expense for this process is time… and of course the fees. But the most important thing to realize it the whole job should be straighforward and easy to understand, owning land in Mexico is not hard. Owning Playa Del Carmen real estate is within your reach! Trust us, you will love your purchase, it’s every bit as good as the Amelia island vacation rentals in Florida.
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