BUYING PROPERTY IN 'THE 'RESTRICTED ZONE'
This title sounds more ominous than it is. Essentially it is seen, from Mexico's point of view, as an essential safeguard to the integrity of the country's borders.
Most of Baja is in this zone including Todos Santos, therefore the requirements in the next paragraph are mandatory if you intend to acquire real estate in this community.
The "Restricted Zone" is defined as any part of Mexican territory up to 100Kms in depth from Mexico's borders and 50 Kms in from its coast lines. Within these boundaries the the 'direct ownership' of land by foreign nationals is prohibited.
There are however various ways and procedures that real estate can be acquired for use by foreigners in this zone. A foreign national can have legal title other than ownership, using two methods,
(1) 100% foreign owned Mexican company may directly acquire property within this zone to undertake non-residential activities: e.g. tourist, commercial and industrial development
(2) By trust: (a Fidecomiso) foreign nationals wishing to acquire property for their benefit and use as for residential activities, and Mexican companies with 100% foreign capital stock, may use this method (obtain a fidecomiso) to acquire residential real estate.
As stated at the outset this is, by necessity, is a thumbnail sketchof the legal system and should not be taken as definitive.
