Are foreigners permitted to buy property in Puerto Penasco, Mexico?
Yes, foreigners may acquire property in Puerto Penasco, Mexico. However, if the property lies within a "restricted zone" such as along borders or in coastal areas, it must be purchased via a legal instrument called a "fideicomiso" or, bank trust. This trust gives you, the beneficiary of the trust, the same rights and obligations as full ownership.
How do I establish a fideicomiso?
A fideicomiso must be established and recorded by a "notario" or, notary public. Your real estate agent should be able to recommend a notario to establish the trust as well as a bank to administer it. Notarios and banks charge competitive fees for their services and the fees depend partly upon the stated value of the property. Most real estate agents work with one notario who works with one bank but are, in fact, able to work with those that you choose. Check out your options and get estimates on fees from a few different notarios and banks.
What information must I provide in order to establish a fideicomiso?
You'll need to provide basic information such as name, address and phone number in the US (or other country of origin), occupation and nationality. If married, the same information will be required of your spouse. You'll need to provide a copy of your passport and tourist visa. The name, nationality, address and phone number of any secondary beneficiary to the trust will also be required.
This trust can be established for 50-year and is perpetually and renewable. During this time, you have all the rights of direct ownership including selling or leasing the property. In addition, it becomes part your estate and can be passed on to your heirs, without inheritance tax.
How much does a fideicomiso cost to establish?
Again, costs vary from notario to notario and from bank to bank. Your real estate agent should help you obtain written estimates from notarios and banks regarding the fees for the establishment and yearly maintenance of the fideicomiso.