Foreign-Owned Property for Sale Playa del Carmen? YES! Foreigners CAN own property in Mexico
History of rights as a foreigner as it relates to property for sale Playa del Carmen
Following the civil war of 1910-1917, the Mexican Constitution was drafted and passed into law. Contrary to popular misconception, Mexico has not been in a war since. Written into the Constitution is a provision that creates an area known as the “Restricted Zone”. The area comprises 100 km (62 miles) from any border with another country, and 50 km (or 31 miles) from any coast. The concern in 1917 was from forgein invasion and in the “Restricted Zone”, only Mexicans could own land. After so many years of being a possession of someone else, this provision was done for their own protection, and at the time, made sense. Then the world changed. As the concept of foreign investment took hold around the world, in the 60s the Mexican Government realized that there was a lot more money outside of Mexico than inside–especially for those looking for property in beach locations, and properties for sale Playa del Carmen. In 1970 a Bill was passed into law which created a legal and viable opportunity for non-Mexicans to invest in this area that was formally restricted only to Mexican Nationals. The Bill specified that a trust (‘Fideicomiso’ in Spanish) could be set up, with the foreigner as beneficiary. This is very important because the beneficiary controls all aspects of the trust. It was this law that allowed for the explosion of foreign investment that catapulted not only Cancun, but also Cozumel, Acapulco, Puerto Vallarta, Ixtapa, and Cabo-San Lucas into tourist hot spots. Soon after, properties for sale Playa del Carmen joined the list of top investment destinations. There have been further strengthening of laws since that 1970 bill. Mexico entered into the North American Free Trade Agreement (NAFTA) in 1995. Just prior to this in 1994 Mexico passed a law that pertains to the ownership of corporations in Mexico. Prior to this bill in order to form a Mexican Corporation there had to be a Mexican Partner involved and he or she had to have at least 51% of the ownership. This law did away with that, and cemented Mexico’s entry into NAFTA. Now any 2 individuals, over the age of 18, can form a Mexican corporation and hold all of its assets without regard to their country of origin. The effects of these 2 laws have been profound for the local economy. Some of the biggest companies in the world now call Mexico home, and Cancun and the Riviera Maya in particular have attracted world class hotels and hospitality resorts. Mexico has become a secure investment in the eyes of businesses, and now individuals are following suit. And yes, you too can own a property for sale Playa del Carmen!