Owning in Mexico

Owning a property in Mexico is safer and easier than most people think. A foreigner can buy property in Mexico through a Fideicomiso. This is a trust agreement, much like an estate trust in the U.S., which gives the Purchaser all of the rights of ownership. In order to gain the rights of ownership, the Department of Foreign Affairs in Mexico City issues a permit to the Mexican bank of the Purchaser’s choice, allowing the bank to act as Purchaser of the property.

Essentially, the bank acts as the “Trustee” for the trust and the Purchaser is the “Beneficiary” of the trust. The trust is not an asset of the bank; the banks simply act as the Trustee to hold the trust. Much like living wills or estate trusts in the U.S., the Mexican bank, or Trustee, takes instruction only from the Beneficiary of the trust (the Purchaser).

All of the property owned in Los Cabos by foreigners is owned through this instrument known as a Fideicomiso which is technically a trust that you are the beneficiary of. Your rights as an owner are virtually the same as if you owned fee simple in the U.S. where you can rent, upgrade, or sale your residence as you wish.

When El Encanto de La Laguna sells a home or condo we always work with a 3rd party escrow company. Typically we work with Stewart Title and Escrow located in California.

Title Insurance is available through companies such as Stewart Title.

Property Tax is very low in Mexico. El Encanto de La Laguna home owners typically pay under $1,000. U.S. Dollars per year.

Utilities are billed separately for each home owner or condo owner. You only pay for what you consume. Bills for gas, water, and electricity can vary greatly depending on the time of the year and usage of things such as Jacuzzi heaters or air conditioning systems.

Overall ownership in Mexico is simple, can be a great investment, and a lot of fun. The service team at El Encanto de La Laguna is happy to assist with any questions regarding home ownership, bills, taxes, importation, and so on.