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MEXLAW > Immigration  > The Most Desired Property in Mexico can be Found in the Restricted Zone.

The Most Desired Property in Mexico can be Found in the Restricted Zone.

Beachfront property is the most desired land in Mexico; this type of property is considered the restricted zone. Owning the most valuable property in Mexico is not out of reach for foreigners, but there are some extra procedures to complete in order to obtain it.

The restricted zones are defined as the strip of land located 100 kilometers along the borders and 50 kilometers from the coast of the national territory, within which foreigners and foreign companies are impeded in absolute terms from acquiring direct control over land, waters and their entry points, for reasons of security and conservation of sovereignty and territorial integrity.

The first antecedents of Mexican laws that refer to the possession of national lands in the hands of foreigners are diverse and follow the political and historical scene of those times, ranging from the invitation to foreigners to settle on the land of the state of Coahuila and Texas, through the total prohibition to acquire or populate these territories by foreigners, up to the current Constitution under Article 27.

The prohibited or restricted areas originated with the desire to protect and maintain the integrity of the national territory, thus avoiding for various reasons, mainly national and economic security, the permanent establishment of foreigners, on the fringes that constitute the coastal and border areas.

The interest of foreigners in acquiring property in coastal areas has been increasing over time, so this impediment seems to complicate the development of these favored areas.

However, there are two alternatives contemplated by law so that anyone can acquire property, without the requirement of being a Mexican citizen, which are described below:

  1. Create a Mexican corporation: Mexican companies with foreign admission clauses may acquire ownership of real estate in the national territory.
  2. Fideicomiso (bank trust) by means of the constitution of real estate transfer trusts located in a restricted or restricted area of ​​the national territory.

The aforementioned options imply the possibility of owning real estate in areas that are reaching increasing value, so it is worth exploring each one and determining which is the best for each person. Contact MexLaw to discuss your best option of obtaining property in the restricted zone.