If you are considering purchasing property in Mexico, you may have already heard that a trust is the best option for foreign buyers. However, there is one crucial requirement that cannot be overlooked: obtaining a permit from the Ministry of Foreign Affairs (Secretaría de Relaciones Exteriores, SRE). This permit is not only a legal requirement but also a safeguard to ensure that your purchase proceeds without complications. In this article, we will explain what this permit is, why it is necessary, and how to obtain it smoothly.
Mexico’s Constitution restricts foreign ownership of properties within certain areas known as “restricted zones,” which extend 50 kilometers from the coastline and 100 kilometers from international borders. To facilitate foreign investment, the government allows foreigners to purchase property through a bank trust, known as a fideicomiso. In this arrangement, a Mexican bank holds the title to the property, while the foreign buyer retains full rights to use, rent, sell, and bequeath the property, just like an owner.
The process to obtain this permit is straightforward, but it must be followed correctly to avoid delays. Here are the essential steps:
John and Susan, a retired couple, had long dreamed of owning a beachfront home in Mexico. After finding the perfect property, they discovered that as foreigners, they needed a trust to complete the purchase. As they began the process, their trustee bank informed them that they first needed to obtain a permit from the SRE. With the assistance of a notary and specialized advisors, they gathered the necessary documents and submitted the application. Within a few days, they received approval and moved forward with the purchase without complications. Thanks to their preparation and professional guidance, they avoided delays and were soon able to enjoy their new coastal home.
The SRE permit is a fundamental step for any foreigner looking to purchase property in Mexico through a trust. While it may seem like just another formality, it is actually a key measure to ensure a smooth and legally secure transaction. By preparing in advance and seeking the right professional support, the process can be completed efficiently and without complications—allowing you to focus on what matters most: enjoying your new property in Mexico.
At The Closing Company, we specialize in guiding foreign buyers through property acquisition in Los Cabos and La Paz. Our team offers comprehensive support throughout the process, ensuring your investment is secure and transparent.
We conduct a thorough review of all documents, manage required permits, and ensure compliance with Baja California Sur’s specific legal requirements.
We verify that the property has no outstanding tax liabilities, such as property tax, and is free from recorded liens or encumbrances that may impact the transaction.
For more in-depth reviews, we collaborate with due diligence specialists to examine the property’s full history, ensuring it is free from legal or financial issues.
We assist with establishing an escrow account, adding security by holding funds in custody until purchase conditions are met.
We coordinate the trust process, working directly with local notaries, trustee banks, and government entities for a smooth transaction.
We handle the notary signing process and property registration in the Public Registry to formalize your ownership.
We provide certified translators in the region, ensuring your documents meet the legal requirements for validity in Mexico.
Phone
+52 (612) 141 0399
Email
natalia@theclosingcompany.mx