Buy A Home in the Yucatan
Mexico’s restricted zone and why it exists
If you are interested in Mexican real estate, you know that in order to own property along the coast in the Yucatan Peninsula, you must get a bank trust or create a Mexican corporation. This requirement is due to something called the Restricted Zone. The Restricted Zone is the strip of land within 50 km of the coastline and 100 km from the border. This is a law that prevents foreigners from purchasing property in certain areas of the country.
According to the Mexican Constitution, foreigners cannot directly acquire property located in the Restricted Zone. Have you ever wondered why, exactly? Well, back in the 1800’s, in an attempt to raise Mexico’s population, it was considered necessary to support immigration from other countries. However, this could have been life-threatening for Mexico and its territories, since there was the risk of a possible invasion from foreign dominion.
In order to avoid losing Mexican territory, such as it did when Texas became part of the United States, the Restricted Zone law was launched. The ultimate purpose was to preserve the sovereignty and territorial integrity of the country. This law prohibited colonization by foreigners along the borders with neighboring countries (United States, Belize, and Guatemala). In the same way, the law gave preference to Mexican citizens in terms of land distributions. As a result, it is not permitted that foreigners and foreign companies acquire land or property in the restricted zone. However, there are exceptions.
There have been attempts to remove this law from the Mexican Constitution, however, it has been opposed and these initiatives have failed. The idea of removing or keeping a law that is probably out of date and unnecessary keeps Mexico stuck between a rock and a hard place.
The good news is that if you want to own property in the Yucatan Peninsula this law doesn’t apply to you unless you are dead set on living along the Yucatan’s coastline. Even with this, there are bylaws in place that will allow you to own some beach front property if you want to. We think, however, with a city like Merida, you won’t want to look anywhere else!
Merida is the capital city of the Yucatan and its culture and rich history will have you wanting to look no farther. You can own new construction, purchase land or own a decade’s old hacienda to fix up and enjoy. The sky is the limit here in Merida and you can own just about any part of the city you want! Are you looking to own a bed and breakfast or purchase a hotel? You can do that here too!
For the best realtors in Merida, visit the real estate agents at Merida Property Management and let them show you what parts of paradise you can own. One look at all that Merida has to offer you won’t need to worry about the Restricted Zones!