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Mexico is reforming Fideicomiso Laws.
Mexico is reforming Fideicomiso Laws
Mexico’s House of Representatives recently made a historical move by voting to reform Article 27 of the Mexican Constitution, allowing foreigners to directly own residential real estate within the restricted zone. But before becoming a law, the bill will need to pass through several more steps, including being approved by the Federal Senate , the majority of the State congresses and last but not least, signed by the Mexican President himself.
Changing Article 27 for owning real estate property in Mexico
The proposal would change Article 27 of the constitution, which restricts foreigners from owning real estate property within 31 miles from the coast and 62 miles from the country’s borders ( the restricted area). The law requires foreign buyers to use a fideicomiso, simply known as a bank trusts to purchase and own the property.
The reform measure was introduced by Congressman Manlio Fabio Beltrones of the Institutional Revolutionary Party. Although similar measures have been proposed in the past as a way to encourage foreign investments, it has not been done before by such an influential political leader as Mr. Beltrones.
Residential Real Estate only
The change would solely affect residential real estate and not for commercial projects. Once is has been approved, current fideicomisos will remain in place.
Right now, the Mexican Senate is on leave until September 2013 which results the reform to be a high priority on the agenda and among the first orders of business.
PlayaHouses will keep you posted on this.
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