The Mexican corporation route

A foreign-owned Mexican corporation is a Mexican entity, so it can hold title directly — including inside the restricted zone. It is generally used for business or non-residential purchases rather than for a home.

What it requires

Two or more stockholders of any nationality, aged 18 or over. One is the managing partner and needs the appropriate visa, which allows them to live and work in Mexico year-round operating the corporation. Your Mexican attorney or notario can set the corporation up.

The corporation must register with the Mexican Secretary of Economy, the Secretary of Foreign Affairs and the Treasury (HACIENDA), and file required monthly corporate income reports through a certified accountant.

The trade-offs

• The corporation requires more hands-on attention than the fideicomiso.
• It does not have the ability to avoid capital gains taxes when it sells property.
• It requires a managing partner with an FM-3 visa.
• Monthly reporting of financial activity through a certified accountant.

For most people buying a house to live in, the fideicomiso is the simpler and cheaper route. Here is how that works.