Costa Maya is a stretch of coastline along the eastern Yucatán Peninsula in the state of Quintana Roo, Mexico. It is located south of the Riviera Maya and north of the Belize border. It’s main population center is the up-and-coming town of Mahahual which has a cruise ship terminal, as well as several boutique hotels, restaurants and services. Popular attractions include beautiful beaches, the Mesoamerican Barrier Reef (the second-largest coral reef system in the world), the ancient Maya ruins of Chacchoben and Kohunlich, and various water activities such as snorkeling, diving, birdwatching and fishing.

Visitors can reach Costa Maya by flying into nearby airports such as Chetumal International Airport, Tulum International airport or Cancún International Airport and then renting a car, taking a bus, or hiring a taxi to reach their destination. Within Costa Maya, taxis, rental cars, and bicycles are common modes of transportation. The upcoming finalization of the Mayan Train project will provide additional connectivity to & from the airports, as well as the entire Yucatan peninsula.

A legal historic relic product of foreign invasions in the 19th century states that for national security reasons, coastal and national border zones in Mexico have restrictions on foreign ownership. There are however, two ways in which any foreigner can purchase land within the recognized legal framework and with absolute peace of mind. These options are either through a bank trust (known in Mexico as a fideicomiso), or through a corporation set up in Mexico that holds the property as an asset of the company.

The process typically involves finding a property, making an offer, signing a purchase agreement (promissory contract) once the offer is accepted, completing due diligence, closing the deal through the signing of a title (escritura) certified by a Notary, and registering the property in the Public Registry of Property.

In Mexico, purchasing property as a foreigner often involves utilizing a Fideicomiso, or bank trust, to hold legal title to the property. This trust mechanism is established with a Mexican bank acting as the trustee, holding the property title for the foreign buyer. The buyer, known as the beneficiary, retains all rights to use, sell, or bequeath the property, while the bank manages the trust on their behalf. This arrangement provides security and ensures compliance with Mexican laws regulating foreign ownership of property, particularly in restricted zones like coastal areas. The Fideicomiso typically has a renewable term of 50 years, offering stability and peace of mind to foreign investors. While there are costs associated with setting up and maintaining the trust, it remains a popular and effective method for foreigners to acquire property in Mexico.

Establishing a corporation allows foreign investors to acquire property within the restricted zones while adhering to regulatory requirements. The corporation acts as the legal entity through which the property is owned, ensuring compliance with Mexican law regarding foreign ownership. While this approach offers benefits such as liability protection and potential tax advantages, it requires careful consideration of corporate structures and legal documentation. Controlling shareholders are designated by the owners of the company. It is not necessary to include a Mexican national as a shareholder, but it is required to designate a legal representative of the company and that person has to have legal residence in Mexico.

It depends. Both offer distinct advantages and both entail some setup and ongoing costs.

A corporation can be advantageous for those seeking to undertake some sort of business related to the property they purchase, such as vacation rentals or other forms of tourism-related activities. It allows owners to comply with taxation in Mexico legally and also to record (and possibly deduct some) construction or other expenses related to the business at their property. This also allows for reducing the amount of capital gains tax an owner is liable to pay when they sell the property, although a full calculation will be made as the owner is a company. Naturally, with this option it is advisable to retain the services of an accountant in Mexico to comply with reporting, which adds to the cost of this alternative.

A bank trust on the other hand, is easy for those purchasing a home and not planning on using it for any business related purpose. Initial set-up fees are paid to the bank as well as yearly fideicomiso maintenance. A potentially significant advantage of this option is that capital gains tax can be fully exempted (up to a certain amount) when selling the property, if the seller complies with the requirements used to establish their property as their main residence in Mexico. Accounting and reporting are not required with this option.

Property taxes, known as predial, vary depending on the location, size, and value of the property. They are calculated based on the assessed value of the property by the local municipality in Chetumal, Bacalar or Felipe Carrillo Puerto depending on which area of the coast the property is located. Typical predial taxes are very cheap compared to international standards and average about one or two hundred US dollars per year. The exception is land held without construction inside urban areas. This carries a higher taxation bracket in order to encourage development but does NOT apply to land held outside an urban development.