Buying Mexican property through a company: what the law says

The two kinds of Mexican company

The LIE distinguishes two bylaws clauses (art. 2, section VII and art. 15):

• Foreigner-exclusion clause (cláusula de exclusión de extranjeros): the company will not admit foreign investors, directly or indirectly, as partners or shareholders, nor companies that admit foreigners.
• Foreigner-admission clause: the bylaws instead include the agreement of section I of article 27 of the Constitution. Under the Regulation (art. 14) this is an express agreement, part of the bylaws, by which current and future foreign partners commit before the Foreign Affairs Secretariat (SRE) to be treated as nationals regarding their shares, the company’s property, rights and concessions, and the contracts it signs. It includes the waiver of their governments’ protection under pain of losing the rights to the Nation.

When a company is formed, the Secretariat of Economy authorises the name, and the bylaws must contain one of the two clauses (LIE art. 15). Article 16 A requires the Secretariat to decide on those requests within two business days. A company that switches from exclusion to admission must notify the SRE within thirty business days (art. 16).

Article 10 allows both kinds of company to acquire title to real estate in the national territory. The difference appears in the restricted zone.

Inside the zone: the residential line

For a company whose bylaws contain the agreement, article 10 of the LIE says:

• Non-residential use. It may acquire direct ownership, but it must notify the SRE within sixty business days after the acquisition (section I). Under the Regulation (art. 7), the notice contains the location and description of the property, a clear description of the intended uses, and a copy of the deed. The fee for a notice in 2026 is MX$1,475, and MX$11,330 if it is filed late (Federal Fees Law art. 25, sections X and XI d).
• Residential use. It may acquire only “derechos” over the property, in accordance with the chapter on trusts (section II). That chapter is the bank trust; see how the trust works.

The Constitution’s rule is the same for all foreigners, so the company route does not open direct residential ownership inside the strip.

What counts as residential

Article 5 of the Regulation defines a property “con fines residenciales” as one “destinado exclusivamente a vivienda para uso del propietario o de terceros” (used exclusively as housing, by the owner or by third parties). It then lists, “de manera enunciativa pero no limitativa” (as examples, not exhaustively), properties treated as non-residential:

• timeshare properties;
• those used for an industrial, commercial or tourist activity and, at the same time, for residence;
• property acquired by financial institutions to recover debts;
• property held by companies whose business is developing and selling real estate, until sold to third parties;
• in general, property used for commercial, industrial, agricultural, livestock, fishing, forestry and service activities.

Two consequences follow from the text. A home that is used as housing but also operated as a tourist business falls on the non-residential side by the Regulation’s wording. And in case of doubt, the SRE must answer a consultation on the point within ten business days; if the ten days pass without a ruling, the property is deemed to carry out non-residential activities. That silence rule runs opposite to the tacit approval rule for trust permits, so the two should not be confused.

Penalties for disguised arrangements

Article 38 of the LIE sets fines. Two are relevant here. Section V: simulation of acts to allow foreigners, or companies without an exclusion clause, to enjoy or dispose of real estate in the restricted zone, contrary to Titles Two and Three of the Law, is punished with a fine “hasta por el importe de la operación” (up to the amount of the operation). Section IV: omission or late or incorrect filing of registration, report or notice obligations is punished with a fine of thirty to a hundred daily minimum wages (read as UMA units, in line with the constitutional decree that replaced the minimum wage as a unit of account). The UMA for 2026 is MX$117.31 a day, in force from 1 February 2026 (INEGI).

Registration of the company

A Mexican company in which foreign investment participates must be entered in the National Registry of Foreign Investment (LIE art. 32, section I); see the RNIE explained. Notaries must ask for proof of registration in acts involving a person bound to register (art. 34).

Which professional to consult

A notary (notary) forms the company and formalises the purchase. A real estate lawyer (real estate lawyer) can explain the clauses and the classification of the use. A tax accountant (contador público) handles the company’s tax filings. Check each professional’s registration yourself.