FAQ

PERMISSION TO BUILD TRUST IN RESTRICTED AREA.

 

In accordance with Article 27, Section I of the Constitution of the United States of Mexico, foreigners are barred to acquire direct ownership of lands and waters within a hundred kilometers along the frontiers and of fifty beaches only the use and development of real estate located within this restricted zone, through the establishment of a trust, according to Title II of the Foreign Investment Law is allowed.

The permits issued by the Ministry of Foreign Affairs to create trusts, are intended to enable the use and exploitation of real estate located in restricted area for foreigners (individuals or entities) or, to Mexican companies with foreigners admission clause provided that the property is intended for residential purposes for a maximum period of 50 years. The trust agreement shall be recorded in deed.

As of April 2, 2012, in accordance with the "Agreement that establishes the mechanism by which the trustees delegates from credit institutions must submit applications for the Foreign Ministry permits for constitution of trusts that allow foreigners the use and development of real estate located in restricted zone ", published in the Official Journal of the Federation on March 16, 2012, the Trustees delegates from credit institutions interested in serving as fiduciaries in contracts to establish trusts restricted area only may request permission to Article 11 of the Foreign Investment Law refers, using the Certificate of Advanced Electronic Signature (FIEL) issued by the Tax Administration Service (SAT) a, to Permits the Department of Constitutional Article 27 of the General Directorate of Legal Affairs and receive the appropriate decision by the same means.