INMIGRATION MATTERS

In accordance with Article 27, section I of the Political Constitution of the United Mexican States, foreign individuals are prevented from acquiring direct ownership of land and waters within a strip of one hundred kilometers along the borders and fifty kilometers on the beaches. Only the use and enjoyment of real estate located within this restricted zone is allowed, through the establishment of a trust, in accordance with Title Two of the Foreign Investment Law.

The permits granted by the Ministry of Foreign Relations for the establishment of trusts are intended to allow the use and enjoyment of real estate located in the restricted zone for the benefit of foreign individuals (natural or legal persons) or Mexican companies with a clause admitting foreigners, as long as the property is intended for residential purposes, for a maximum period of 50 years. The trust agreement must be in a public deed

In accordance with Article 10, section I of the Foreign Investment Law, Mexican companies with a clause of admission of foreigners that acquire a property within the restricted zone and intend to use it for non-residential purposes, are required to submit a notice of the acquisition of said property to the Ministry of Foreign Affairs.

According to Article 11, section V of the Regulation of the Foreign Investment Law and the National Registry of Foreign Investments, when it is necessary to expand the scope (surface area of the property) and/or change the purposes of the trust agreement that was established under the permits provided for in Article 11 of the Foreign Investment Law, the credit institutions (bank) must obtain the corresponding permission from the Ministry of Foreign Affairs.