«Becoming a homeowner in Mexico outside the restricted zone» … Yes, foreigners can own property in Mexico, either by using a fideicomiso or a Mexican Corporation. Or even better: holding title directly, as long as the property is located outside the restricted zone.
Valladolid Yucatan is outside the restricted zone, so here you can own your property directly. All you need to do is get a permit from SRE allowing you to do so. But even when it’s a relatively easy process, since the year 2020 it has become slow, expensive and challenging.
Let’s take a closer look at the steps you need to take to purchase your home in Mexico.
Find your home
This is a very important step, as the permit to purchase property is linked to a specific home or lot. Once you find the place you want to buy, you can start the process to get the permit.
As of now, getting the permit to purchase property in Mexico is taking at least 2 months, and up to 6 months in extremely rare cases.
As the permit is linked to a specific property, you don’t want to risk waiting for months to get it, only to find out that the owner already sold the property. So by all means you will need a promissory contract before starting the paperwork.
Do the paperwork
Getting the permit from SRE used to be fast and easy, and you could do it yourself in any SRE office in Mexico. However, since 2020 this permit is only issued in Mexico City.
You still can do the process yourself, but for this you would need to travel there to turn in the documents and pick them up.
The other option is to hire a lawyer in Merida who can help with the process.
You will need to turn in documents about the property, your ID and your migratory form in order to get started. Your agent can work with you to get everything ready for this step.
Once all the documents have been delivered, the lawyer will fill in the forms to request the permits.
It is important to do this paperwork while you’re still in Mexico, as the forms need to be signed in person.
Be patient
Everyone will be happy when the lawyer finally sends the documents. However, only until SRE replies to the request with an official confirmation and a tracking number for your case, can you start counting the months to get your permit.
Ideally the process will take only two months, but in practice it can take up to 6 months to get the permits. So, keep it in mind when you sign a promissory contract! Make sure to include a clause allowing you to extend the time if needed.
Close the purchase
During the process, you will definitely feel like time goes by very slowly. But eventually you will receive your permit, and will be able to purchase the property and become a homeowner in Mexico.
Even when it’s time consuming, holding a title directly has its benefits. For instance, you will only pay the yearly taxes of the property, saving yourself the yearly fees of a Bank Trust.
Also, a title is forever, while Bank Trusts have to be renewed every 50 years. There’s nothing wrong with that, but… who’s going to be counting the years?
And of course, many people simply prefer owning their property directly.
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Contact us if you’re interested in learning more about the options for owning property in Mexico!
