28/10/2023
YOUR GUIDE TO BUYING PROPERTY IN MEXICO AS A CANADIAN
JUN 09, 2023
It is no secret that Canadians have a special place in their heart for Mexico. Many Canadians have been escaping the chilly Canadian winters to enjoy Mexico’s beautiful beaches and temperate climate for years. As more and more Canadians think about owning a piece of paradise, we get a lot of questions wondering if it’s possible. The simple answer is yes; it is legal to purchase property in Mexico as a Canadian.
Here are the answers to the most common questions we receive.
Is it difficult for Canadians to purchase property in Mexico?
No, it is not difficult at all. You’ll want to learn some things, but it is more straightforward than you might think. Some Canadian buyers feel it is even simpler than a property purchase in their home country.
2. Do I need to be a Mexican Citizen to own property in Mexico?
You do not need any form of citizenship to own property in Mexico. You will need simple documentation such as a passport and driver’s license. The only requirement for Canadians that may be a bit different than a property purchase in Canada is a ‘fideicomiso.’
3. What is the fideicomiso?
In 1993, a new constitutional amendment was made, giving Canadians the right to buy properties in the restricted zone. The restricted area is within 50 kilometers of Mexico's coastline and 100 kilometers of any international border. The Riviera Maya falls within the restricted coastal zone.
4. Does the fideicomiso mean I don’t own the property outright?
Just the opposite! The fideicomiso is the legal way for a Canadian to own property in Mexico. Before entering into any real estate transaction near Mexico’s coastlines or borders, you will want to ensure you have a fideicomiso because it protects you as a buyer and gives you all the same rights as a Mexican landowner.
5. Do I need a real estate agent to buy property in Mexico as a Canadian?
You can purchase property several ways in Mexico - just like in Canada; there are real estate agents who can help you look for property. You can also buy brand-new properties directly from a land developer such as Selva Escondida. In Mexico, a government-appointed notary prepares the closing paperwork, processes the transaction, and collects all fees. Hiring a third-party lawyer is only necessary if you feel more comfortable doing so.
6. I can’t come to Mexico right now. Can I buy a property in Mexico from Canada?
Yes, you can! If you cannot travel now but want to secure a property before prices increase, it’s possible to buy a property from Canada. With today’s technology, many Canadians have set up video tours of properties and signed most of the required paperwork electronically. You will need to appear in person or appoint a power of attorney to sign the public deed.
7. How do Canadians finance a property purchase in Mexico?
There are no banks in Mexico that offer traditional mortgages for Canadian citizens. Buyers typically find financing in Canada or pay for the property in a lump sum. For our properties at Selva Escondida, you can make an initial payment of 20% of the cost and make interest-free monthly payments for twelve months. We also offer an innovative new way for Canadians to utilize assets they already have to purchase one of our properties. And if you are a Mexican citizen living in Canada, other financing options are available to you as long as you can provide documentation for your citizenship.
8. How can I send money to Mexico as a Canadian?
There are many easy ways to send money to Mexico now. Your local bank can assist you with sending the money, or you can use an online transfer service. Either way, your money is secure and traceable.
9. What are the closing costs and other expenses?
The closing costs are approximately 7% of the property's purchase price. There is a fee to set up the fideicomiso. Annual expenses for a Canadian owning property in Mexico are reasonable. Property taxes are less than 1% of the property value, and utilities and HOA fees are low.
10. Is it easy to adapt to life in Mexico?
Owning a property in Mexico is a relatively soft landing into international living. As an English speaker, you can arrive without a complete command of Spanish and enjoy life right away. It’s also easy to travel to Mexico from Canada with convenient, reasonably priced flights. This makes Mexico attractive for Canadians looking for a hassle-free escape in the wintertime months.
And rest assured; you are not the first to purchase a property in Mexico! You’ll find plenty of other like-minded Canadians, who are always excited to meet fellow Canadians in the area. In this short interg for an upgraded lifestyle in a beautiful, tropical location, we’re here to help! Feel free to reach out to us today!
This article was written by Selva Escondida in Puerto Morelos Quintana Roo Mexico.
