Mexico remains one of the top destinations for Canadian investors seeking opportunities in international real estate. Whether you’re looking to purchase a vacation home, a rental property, or invest in land for future development, Mexico offers an attractive combination of affordability, lifestyle, and long-term growth potential.
However, before diving into an international property purchase, it’s crucial to understand both the advantages and the legal frameworks in place, especially the rules surrounding Mexico’s restricted zones.
Why Invest in Mexican Real Estate in 2025?
Growing tourism and rental demand: Mexico’s thriving tourism industry continues to fuel short-term rental markets, especially in hotspots like Tulum, Playa del Carmen, Puerto Vallarta, and Cabo San Lucas.
- Favorable Buying Power: Despite the early year currency turmoil, Canadians still maintain a strong buying power in Mexico.
- Diversification of assets: Investing abroad allows Canadian investors to diversify their portfolio outside of the domestic market.
- Lifestyle and retirement: Owning a property in Mexico offers a potential retirement home or vacation escape in a warm, culturally rich environment.
With these benefits in mind, understanding the real estate financing process—and how to legally acquire property—is essential for success.
Understanding Mexico’s Restricted Zones
According to Article 27 of the Mexican Constitution, foreigners are prohibited from directly acquiring property within the “restricted zone”—defined as land within 100 kilometers of a national border or 50 kilometers of any oceanfront.
However, Mexico’s Foreign Investment Law offers two legal paths for foreigners to invest:
1. Trust Incorporation (Fideicomiso)
Canadian investors can form a Mexican corporation to purchase property in the restricted zone.
- There are no restrictions on the amount of foreign ownership within the corporation.
- Once the Mexican company is legally established, it can acquire, develop, and manage property anywhere in the country, including restricted areas.
2. Bank Trust (Fideicomiso)
Another option is acquiring property through a trust with a Mexican bank. This structure offers security and flexibility for Canadian buyers seeking to invest in Mexican real estate.
- The seller irrevocably transfers the title to the bank, which acts as trustee. The buyer becomes the beneficiary, enjoying full rights to use, rent, modify, and even sell the property.
- The trust must be established for a renewable 50-year term and is fully compliant with Mexican law.
- All transactions must be carried out through a Notary Public and registered with the Public Registry of Property.
How Seaport Credit Canada Supports Your Real Estate Investment Goals
Securing real estate financing for an international property purchase can be complex, but Seaport Credit offers a streamlined solution for qualified Canadian investors. Our Seaport Loan provides no out-of-pocket expenses, competitive interest rates & a quick process from application to funding
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If you’re ready to make your dream of owning a property in Mexico a reality, Seaport Credit Canada is here to help you navigate the international real estate financing process with confidence. Contact us today to learn more about how we can support your investment goals!
www.seaportcredit.com