Premium lots in Yucatán
Merida, the capital of the state of Yucatan in Mexico, has become a highly attractive destination for foreign investors looking to acquire properties, especially residential lots. Cantori is a prominent development, a premium residential lot project that offers not only a prime location in an established residential area in Cholul, Yucatan but also a secure environment and a variety of exclusive amenities.
Buying a premium lot in Yucatan as a foreigner is an excellent investment, and it’s important to understand the topic of the restricted zone, the details, and requirements to do so successfully. In this article, we will guide you through the process so you can make informed decisions and take advantage of all the benefits that Cantori and the Yucatan region have to offer.
Before venturing into purchasing a premium lot in Yucatan, make sure to understand the real estate market and pricing trends in Merida. We can provide guidance in both English and Spanish!
Let’s begin. What is the Restricted Zone?
In accordance with Article 27, Section I of the Political Constitution of the United Mexican States, foreigners are prohibited from acquiring direct ownership of land and water within a strip of 100 kilometers along the borders and 50 kilometers on the beaches. Only the use and enjoyment of real estate located within this restricted zone are allowed, through the establishment of a trust, in accordance with Title II of the Foreign Investment Law.
What is the Restricted Zone Trust?
The permits issued by the Ministry of Foreign Affairs for the establishment of trusts aim to allow the use and enjoyment of real estate located in the restricted zone in favor of foreigners (individuals or legal entities) or Mexican companies with a clause admitting foreigners, provided that the property is intended for residential purposes, for a maximum period of 50 years. The trust agreement must be documented in a public deed.
Through this agreement, a person as the Settlor transfers or contributes real estate to a Trust in exchange for consideration, in which the Trustee is entrusted with holding title to it, managing it, and transferring or delivering it in accordance with the instructions of the Foreign Beneficiary and, upon their death, in favor of their designated beneficiaries as specified in the trust agreement.
Based on the above, we can define the trust as a legal mechanism that allows foreigners to use and enjoy real estate through a permit granted by the Ministry of Foreign Affairs and is carried out through a bank (fiduciary) to ensure its proper operation.
What You Need to Know
- The trust has a duration of 50 years, extendable.
- The agreement is executed before a notary public.
- Permission from the Ministry of Foreign Affairs is required, and the Trustee handles the procedures.
- The Trust is registered in the National Registry of Foreign Investment.
Steps to Carry Out the Trust
Mexican Company
Similar to many countries around the world, a corporation or company is a legal entity for the purpose of commerce and has legal personality distinct from that of the partners or shareholders.
Through a Mexican company, one can acquire properties in the restricted zone. The advantage of creating a company is that foreigners can own Mexican assets directly and are not subject to a trust.
Pre-sale Projects
❖ Up until the delivery of the property (lot), the establishment of the trust in the restricted zone begins.
❖ It is important to inform foreigners in advance that during the pre-sale, a private contract called a ‘promise of fiduciary assignment’ is signed between the selling party and the interested party in acquiring the property.
❖ It is important to note that the real estate trust is not a mortgage loan.
❖ Permits granted by the Ministry of Foreign Affairs for the establishment of trusts, as well as fees and annual fees of the fiduciary institution, will be paid at the time of the establishment of the trust in the restricted zone.
Consider Financing
If you do not plan to purchase the premium lot in cash, research the available financing options. Some developments, such as Cantori, may offer flexible financing plans for foreign investors.
Cantori not only offers a strategic location in Merida but also premium lots with a safe environment and top-notch amenities. Among the amenities are green areas, a swimming pool, a gym, and 24-hour security. Investing in Cantori can provide an excellent long-term return on investment, whether you plan to build a vacation home, make a future investment, or secure a retirement property.
Benefits of Investing in Cantori
In summary, purchasing a premium lot in Yucatan as a foreigner is an exciting and lucrative investment. By following the right steps and seeking guidance, you can enjoy the benefits of life in Merida and ensure a promising future in this beautiful region of Mexico. Feel free to contact us and take the first step toward your investment in Cantori.