What a foreign buyer needs to know first.

A trust works by having a Mexican bank buy the property on behalf of the foreigner and holds it in trust for the duration of the same. The bank has a fiduciary relationship with the beneficiary, meaning it must always act in their best interest.

The trust is initially set for a period of 50 years and can be renewed at any time through a very simple form and a nominal fee.

Mexican banks have government protection against bankruptcy, which means the trust is indirectly guaranteed by the government.

Benefits of the trust:

• Allows foreigners to buy properties within the restricted zone.
• Gives foreigners the same rights as Mexican citizens.
• Can be used to purchase multiple properties in Mexico.
• You can designate heirs in case of death.
• Facilitates the sale to another foreign buyer by simply changing the name.

Types of Trust:

• Bank Trust: A bank acts as a trustee to manage resources for the benefit of the beneficiaries.
• Testamentary Trust: Created through a will to ensure the distribution of assets.
• Real Estate Trust: The object is a real property; allows foreigners to acquire properties in restricted zones.

The Foreign Investment Law and the Land Law include some important restrictions on real estate trusts for foreigners:

• Foreigners cannot own properties destined for strategic activities, natural resource exploitation, radio, television, or transport services.
• Depending on the location, properties may not exceed a surface limit stipulated by law.
• The property may not be used for commercial purposes outside the law.

Requirements may vary by trustee institution, so it is vital to have a good lawyer to guide you through the entire process.

• Provide the bank with your personal information through official identification and property details.
• Fill out the application form: name, surname, nationality, immigration document number, address, and authorized person details.
• Documentation must be signed by the applicant and prove their stay status.
• Submit the original application along with two copies to the relevant authorities.
• If documentation from the country of origin must be translated, it must be done by a certified translator.
• Pay the fees and commissions of the process.

• Waiver agreement for the acquisition of real estate outside the restricted zone (Art. 27 fraction I of the Constitution and Art. 10a of the Foreign Investment Law).
• Document accreditation of legal stay.
• Annex indicating the details of the real estate to be acquired.
• Issuance of certificate for obtaining concessions (approximate cost: $7,540 MXN).

To reserve a unit, a deposit of 5,000 USD is required. The reservation period is 15 business days, during which the following steps are carried out:

• Drafting of the offer letter and negotiation of terms.
• Presentation of documents necessary for the purchase and sale agreement.
• The developer sends the contract to the client for review.

If both parties agree, the contract is signed and the down payment is made, generally equivalent to 30% of the property value.

The entire process from reservation to signing usually takes about one month.

If an agreement is not reached during the 15 days, the developer will refund the full value of the reservation within 72 business hours.

The way to acquire a property on Mexican land as a foreigner is through legal agreements. The simplest and easiest is the trust (fideicomiso).

The Mexican Constitution (Article 27) establishes that certain territories are "restricted zones" and cannot be bought directly by foreigners. Through the trust, a bank holds the property title while the foreigner is the sole beneficiary.

The trust is established for a period of 50 years and can be renewed at any time. Mexican banks have government protection against bankruptcy, which indirectly guarantees the investment.

Estimated between 6% and 9% of the sales price, including taxes, Notary and appraisal fees, opening commission, and obtaining the SRE permit.

If you choose to mortgage the property, closing costs will be closer to 7% to 10%.

Buyer fee calculation:

• 3% acquisition fees
• 1% registration expenses
• 1% notary fees
• SRE Permit: ~$2,000 USD opening + $500 USD per year

When buying a property in Mexico, you must pay the Property Acquisition Tax (ISAI). Rates vary by state, from 2% to 5% of the property value.

You must also pay the Predial (annual property tax), which is quite low. It is paid before March 31, and its amount is calculated according to the size and location of the property.

Real estate agents provide advice and assistance to both buyers and sellers. Their functions include:

• Helping clients locate properties that meet their needs.
• Preparing the property for viewings by potential buyers.
• Conducting market studies to determine the fair value of the property.
• Guiding negotiations between parties.
• Taking charge of photographic and video evidence of the property.
• Preparing necessary documents for the transaction.
• Advising on real estate laws and regulations.
• Helping clients find financing.

Turnkey: A home you can move into the moment you are given the keys, without needing renovations, equipped with appliances and ready to inhabit.

Gray shell: The stage in which all enclosing and housing walls are built. Roofs, waterproofing, pipe installation, wiring, and utility connection are added. It is not yet ready to inhabit.

Shell (Obra negra): Construction, excavation, leveling, and foundation work are performed, including structural details in walls, slabs, roofs, and main pipes. The house is not habitable in this state.

Our property management service is based on the "long-term business" philosophy for those seeking to generate passive income without worrying about managing their property.

The process includes:

• Promotion on platforms like Airbnb, VRBO, Expedia, Booking, and TripAdvisor.
• Accounting through bank statements.
• Legal assistance relevant to the property.
• Operational management and Concierge service for your guests.
• Own APP with real-time information: occupancy, availability, invoices, payments, and net earnings.

Additionally, you can enjoy your property whenever it is vacant, without paying for your stay.

The cost of living depends on your budget and preferences. Monthly estimates for 1-2 people:

• Services (electricity, water, gas, internet): ~$170 USD/month
• Cell phone: ~$35 USD/month
• Groceries: ~$350 USD/month
• Entertainment (restaurants, bars, tourism): $500-$600 USD/month
• Unforeseen: $90-$100 USD/month

Estimated total: ~$1,180 USD/month

The Riviera Maya is considered one of the world's most impressive destinations, with excellent opportunities for equity growth and high real estate investment indices.