I have received many communications from clients lately about the proposed changes to the Mexican constitution Article 27 fraction 1 that requires foreigners to own or hold properties located within the restricted zones in a Mexican bank trust. The rumors are already rampant that it has passed, but this is not true, yet.
There is a proposed constitutional amendment that would do away with the necessity of foreigners having to use a trust (fidecomiso) to purchase residential property in Mexico. The lower house of congress (Camera de Diputados) approved the bill that was presented to amend Article 27 of the Constitution. This now must go to the Senate for approval. This amendment will need the approval of the President (if he vetoes the bill the Senate, with a 2/3’s vote, can override the veto) and then 2/3’s majority of all of the individual State Congresses must also approve.
Of course this would be wonderful news for Mexico who through the efforts of the new President Enrique Peña Nieto is trying to make Mexico more competitive with other countries looking for foreign investment and growth. Mexico’s healthy economy has become very attractive for foreign investment but the fact that 9 out of 10 US citizens believe that you cannot hold title to real property in Mexico is making Mexico miss out on a larger piece of the pie that is foreign investment. Doing away with the restriction of holding property in a trust for foreigners has an incredible upside but it can also have its downside if US citizens who own property in Mexico do not get a will and testament created in Mexico for the inheritance of real property if this amendment ever happens.
You can find more information using this link: http://beltrones.com/reforma_propiedad_playas_nacionales/index.html
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