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mrfatboy
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Mexican Proposal to Allow Foreigners to Own Coastal Property
Someone posted this on trip advisor- puerta vallarta and I wanted to pass it along.
Representatives of the Institutional Revolutionary Party (PRI) in the the Chamber of Deputies, the lower house of Congress, are proposing a
constitutional reform that would allow foreigners to own property along the country's coasts, which has been banned based on the argument that this
protects national territory.*
The coordinator of the PRI deputies, Manlio Fabio Beltrones, said the constitutional reform will end feigning, subterfuges and even acts of name
lending (prestanombres) used by citizens of other countries in order to acquire a beach area residence.
Beltrones said that the goal is to amend Article 27 of the Mexican Constitution in order to give [foreigners] legal certainty, insofar as it is an
evident and known fact that foreigners legally purchase properties through trusts [fideicomisos] or corporations/partnerships because they cannot own
them as individuals.
The Sonoran politician said that the reform would only allow the acquisition of properties for family use.
This would encourage investment, he said, and municipalities would benefit additionally from the collection of property taxes.
Beltrones said that currently a foreigner can buy a residence in Puebla, in central Mexico, or next to the National Palace, but he/she cannot own an
apartment at beaches such as those in Huatulco, Veracruz, Sinaloa or Guerrero.
"This just seeks to legalize what [is now being] done, insofar as it is obvious [and] because we must not close our eyes. Not effecting this reform is
to legitimize a means, through trusts or corporations, that does not give legal certainty," Beltrones explained at a press conference.
* MEXIDATA.INFO NOTE: Article 27 of the Mexican Constitution, in the concluding sentence under point I, states: "In a zone of 100 kilometers [inland]
the length of the [nation's] borders, and 50 kilometers on the coasts, under no circumstances may foreigners acquire direct control/ownership of lands
or waters."
The proposed amendment thereon, as just submitted in the Chamber of Deputies, reads: "In a zone of 100 kilometers [inland] the length of the
[nation's] borders, and 50 kilometers on the coasts, under no circumstances may foreigners acquire direct control/ownership of waters. In the case of
lands, they may be acquired when they are exclusively for non-commercial residency use."
This latest initiative is cosponsored by deputies of the PRI and PAN (National Action Party), including Manlio Fabio Beltrones (who has long been a
highly important player and influence in Mexican politics and The System). For both reasons, it would seem to up-the-odds that this decree, and
constitutional reform, could be ratified.
http://mexidata.info/id3588.html
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schwlind
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Thanks... we'll have to see if anything comes of this..
Linda
Linda
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redmesa
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This could bring on many changes. Good, bad, and....
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dtbushpilot
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What are the chances that this "opportunity" won't cost current fide holders additional money? What are the chances that this process will be
streamlined and at a reasonable cost?
The questions are rhetorical of course, no answer required....
"Life is tough".....It's even tougher if you're stupid.....
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DianaT
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| Quote: | Originally posted by dtbushpilot
What are the chances that this "opportunity" won't cost current fide holders additional money? What are the chances that this process will be
streamlined and at a reasonable cost?
The questions are rhetorical of course, no answer required.... |
Those were my first thoughts. I am just guessing we would have to buy our way out of the fideicomisos and then maybe pay additional transfer fees?
And would the existing bank trusts still be legal?
Also, they mention buying it strictly for family use, so I wonder if those who have Mexican corporations and use their property rentals, etc., if they
would still be legal.
It certainly will be interesting and for new buyers, it should greatly reduce their buying costs, if they are buying it for family use.
Lots of those rhetorical questions hanging around -- 
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dtbushpilot
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I try not to be cynical about these things but it can be difficult. I chalk it up to the price of living in paradise.....there's no free lunch...
"Life is tough".....It's even tougher if you're stupid.....
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dtbushpilot
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I really do hope that the fide process can be replaced with a simple title process. It will be a little late for us but it could really boost foreign
investment in MX. We have 4 fide's, we didn't plan it that way but that's what we have. On our last property purchase the cost of the fide was more
than the price of the lot....no, really. I know a lot of people that would like to buy and build in Baja but won't take the risk on a title process
that they don't understand.
Let's keep our fingers crossed...
"Life is tough".....It's even tougher if you're stupid.....
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DianaT
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| Quote: | Originally posted by dtbushpilot
I try not to be cynical about these things but it can be difficult. I chalk it up to the price of living in paradise.....there's no free lunch...
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Yes, I agree. I find this one statement very interesting and wonder what might have been lost in the translation.
""This just seeks to legalize what [is now being] done, insofar as it is obvious [and] because we must not close our eyes. Not effecting
this reform is to legitimizea means, through trusts or corporations, that does not give legal certainty," Beltrones explained at a press
conference.
Ni modo, we just have to wait and see. The PRI certainly has changed over the years.
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Islandbuilder
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And of course the banks will just shrug and kiss the millions they make from trusts goodbye. And the lawyers who cut and paste trust documents will
find another way to make free money?
Seems like an obvious way to increase foreign investment, but is it good politics to tick off actual voters in favor of potential investors?
There will almost have to be some sort of quid pro quo to get the banks and lawyers on board, and guess who will be paying for that?
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tripledigitken
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Possibly a good thing for new buyers. Those with fido's could face having to convert their fido's to new title doc before they can sell their
properties, at say $5k-$10k.
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DianaT
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| Quote: | Originally posted by tripledigitken
Possibly a good thing for new buyers. Those with fido's could face having to convert their fido's to new title doc before they can sell their
properties, at say $5k-$10k. |
We have had a couple of Mexican citizens interested in our house and we were quoted a fee of just over $2,000.00 to end our trust, but as always, it
seems to be different for different banks. Gaining new title is another matter.
It sounds like the new law, IF it passes, would pretty much ban the bank trusts, so if they are no longer legal, well................ so much
speculation with which to boggle the mind.
Willian Randolph Hearst is rolling over in his grave. 
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El Jefe
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And won't it be interesting if they pass this and set a date in future for it to take effect? Real estate transactions will stop dead until the new
system takes hold.
No b-tchin\' in the Baja.
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EngineerMike
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While banks & liars, er, I meant lawyers would lose a small cottage industry, there would be other beneficiaries.
Developers would have a more liquid market to sell condos & property. Local property prices would likely rise in popular areas, and certainly
transactions would increase, hence tax collections would go up. Gotta be a lot of municipality workers in favor.
Director, Mulege Student Scholarship Program
Oasis Rio Baja #M-3, & Auburn, CA
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MitchMan
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I don't see why this proposed change would render currently existing fideicomisos invalid.
I do believe that the banks will definitely charge a fee for having the trustee sign over the property to the fido beneficial owner, and, I think that
there will be other required paper filings that will cost money, but the big one is the fee that notarios will charge for their required processing
and sign-offs. Should the proposal come to pass, there will probably be the usual "work-out" period where the administrative people learn what to do
as they never really get schooled in any official and comprehensive way, so it will be incumbent upon the fido beneficiary to pay for local legal
assistance (as if the abogados actually would read sufficiently to know what to actually do in new circumstances).
My guess is, it won't be cheap...but it should be.
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DENNIS
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This foreign ownership ball has been bouncing back and forth since.....forever. It is well traveled lip service to promote investment and
confidence, but don't be holding your breath. It may change about the same time we see those promised jurys in court rooms.
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CortezBlue
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| Quote: | Originally posted by dtbushpilot
What are the chances that this "opportunity" won't cost current fide holders additional money? What are the chances that this process will be
streamlined and at a reasonable cost?
The questions are rhetorical of course, no answer required.... |
I would be happy to pay a small transfer fee, maybe $500 to $1000 to get out of paying $400 a year every January!!
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larryC
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| Quote: | Originally posted by CortezBlue
| Quote: | Originally posted by dtbushpilot
What are the chances that this "opportunity" won't cost current fide holders additional money? What are the chances that this process will be
streamlined and at a reasonable cost?
The questions are rhetorical of course, no answer required.... |
I would be happy to pay a small transfer fee, maybe $500 to $1000 to get out of paying $400 a year every January!! |
How did you get a $400 fee? Mine is $550 and I thought that was good. Guess I was wrong again.
Off grid, 12-190 watt evergreen solar panels on solar trackers, 2-3648 stacked Outback inverters, 610ah LiFePo4 48v battery bank, FM 60 and MX60
Outback charge controllers, X-240 Outback transformer for 240v from inverters, 6500 watt Kubota diesel generator.
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MitchMan
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I pay $400 USD plus $44 USD of IVA. I read somewhere that it was possible to 'negotiate' down the fee AT THE TIME OF THE CREATION OF THE FIDEICOMISO
during the purchase process...however, no one told me that at the time of the purchase. Also, I understand that Mexican Banks are not the only
entities or companies that can be trustees in fideicomisos and that those other entities would most likely charge much less per ongoing years.
My big question is whether I can change my trustee to one of those other entities at this point in order to enjoy a lower annual fido fee without
incurring massive costs to do so(?)
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CortezBlue
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| Quote: | Originally posted by larryC
| Quote: | Originally posted by CortezBlue
| Quote: | Originally posted by dtbushpilot
What are the chances that this "opportunity" won't cost current fide holders additional money? What are the chances that this process will be
streamlined and at a reasonable cost?
The questions are rhetorical of course, no answer required.... |
I would be happy to pay a small transfer fee, maybe $500 to $1000 to get out of paying $400 a year every January!! |
Sorry, but it is a typo, I think it is a bit over $500, my bad.
How did you get a $400 fee? Mine is $550 and I thought that was good. Guess I was wrong again. |
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Leo
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Those Fees are all over the place as mine is 330 per annum. Was 300 originally and is at Bancomer probably going up 10% next year.
The grass is always greener....
and so, there is always a better spot in Baja
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