On April 23, 2013 the House of Representatives of Mexico approved an historical Amendment to article 27 of the Mexican constitution which provides that no foreign person can acquire ownership of real property of Mexico in the “restricted zone” of Mexico (100 kilometers wide from the borders or 50 kilometers from coastal shores). This Amendment must be approved by the Mexican Senate and by a majority of the State Congresses. Assuming such approvals, the use of a Mexican bank land trust “fideicomiso” will no longer be necessary for foreigners to purchase property in the restricted zone of Mexico.
Included in the Amendment are the following conditions that must be met:
1. The property must be used solely for residential purposes;
2. No commercial, industrial or agricultural activity is permitted on the residential property;
3. The foreigner must obtain a permit from the Foreign Affairs Ministry which includes the agreement that the foreign person will be subject to the laws of Mexico and will not seek the protection of their foreign government under penalty of losing the rights to the property;
4. If the property is used for any purpose other than residential, the sanction for doing so will result in a forfeiture of the property to the Mexican government
It is anticipated that the forgoing conditions and other provisions to implement the Constitutional Amendment will be set forth in amendments to the Foreign Investment Law.
About Tuesday, April 30th, 2013 11:31 am GMT -8 Fred Hill