Owning Property | Living in Puerto Vallarta | Healthcare

Foreign ownership

Yes, foreign citizen can own property in Mexico. It is a commonly held misconception that foreigners cannot own property in Mexico. In reality, nothing could be further from the truth. Outside of Mexico's Restricted Zone, (defined below) a foreigner or foreign corporation can hold direct ownership of any type of real estate complying with Mexican law.
However, there is a Restricted Zone. The Mexican Constitution regulates ownership rights of this land and establishes that foreigners may not hold direct ownership within 100 kilometers of any border and 50 kilometers of any coastline.

Nevertheless, since 1993, a Constitutional Amendment has allowed non- Mexicans to own property in the Restricted Zone through the creation of a Bank Trust, or Fideicomiso. A bank, known as the Trustee, acts on behalf of the Beneficiary, or the Purchaser. A 1994 Constitutional Amendment states that these trusts cover a term of 50 years, renewable at any time over its existence through a simple application process.

The Beneficiary has all ownership rights to the property and may sell, lease, rent, mortgage, pass to heirs or any other legal act that he wishes with the property. The property does not become part of the bank's assets and cannot be subject to any lien or bank obligations.

Title insurance

Title insurance protects against unpaid taxes, liens or claims on the property. Before the policy is issued, a title insurance company conducts an in -depth search of the property to detect, prevent and eliminate risk and loss caused by title insurance will remain in effect until you sell the property. Currently, there are two companies in Puerto Vallarta to choose from: Stewart Title and First American Title Company.

Property Taxes

There is great advantage to owning property in Mexico: property taxes are extremely low. In Puerto Vallarta, the rate is .08% of the assessed property value, which is determined at the time of sale. Property taxes are due every quarter and there is a 15% discount if the entire year is paid in full prior to February of each year.

Financing in Mexico

Real estate purchases are still mainly cash in Puerto Vallarta. For those who can't afford to pay cash to buy their dream home, financing has become available. Rates are little higher, but some people prefer to have a Mexican loan against their Mexican property. This way they aren't tying up their home equity in the U.S. or Canada.
There are quite a few loan brokers to choose from in Puerto Vallarta, we recommend MexLend. They have many different options available to suit each individual’s needs.