Foreigners looking to buy property in Mexico must understand the legal implications of the Restricted Zone in Mexico. This area includes any land within 100 kilometers of Mexico’s borders or 50 kilometers from its coastlines. Consequently, non-Mexicans are not allowed to directly own residential properties located in these areas. Nevertheless, a legal tool allows full access to property rights through a trust system.

What Is the Restricted Zone?

The Restricted Zone in Mexico is defined in Article 27 of the Mexican Constitution. It was created to protect national territory. However, this does not mean foreigners are excluded from investing. To clarify, the Restricted Zone Trust (Fideicomiso) provides a path for foreign individuals to hold rights to real estate. In this case, the trust acts as a legal intermediary.

How Does the Trust Work?

Under this system, a Mexican bank (the trustee) holds the legal title, while the foreign buyer (the beneficiary) gains control and usage rights. In other words, although the buyer is not the legal owner, they can use, rent, remodel, or sell the property. Therefore, this arrangement protects national law while enabling foreign investment. What’s more, it ensures the buyer’s rights are fully recognized.

Who Can Use This System?

Any foreigner—regardless of residency status—can create this type of trust. To illustrate, even a tourist may begin the process. The trust is valid for 50 years and renewable. In addition, beneficiaries can be named to inherit rights without further legal complications. Altogether, it offers flexibility and long-term peace of mind.

What Is the Role of the Notary Public?

The notary public supervises the legal process. As a matter of fact, they validate the transaction, confirm the legality of the title, and ensure tax compliance. For this reason, selecting a qualified, bilingual notary is crucial to ensure every detail is handled properly. Above all, their involvement guarantees legal certainty.

Final Thoughts

While the Restricted Zone in Mexico includes constitutional restrictions, the trust system opens the door to legal, safe investment. All in all, it is a reliable and efficient solution for foreigners interested in Mexican real estate. To that end, working with a trusted notary is essential for a successful purchase.