Proposed Constitutional Reform on the Acquisition of Real Estate by Foreigners. Proposed Constitutional Reform on the Acquisition of Real Estate by Foreigners.
April 2013. This past April 23 the Chamber of Deputies approved the pronouncement of reform of article 27 of the Political Constitution, with the purpose of allowing foreigners to acquire residential property on the coast and borders, on a strip of 100 kilometers from the borders and 50 on the coasts, the so-called "Restricted Zone", provided that its use is for residential purposes. The pronouncement explains that, historically, foreigners have been prohibited from acquiring land in the Restricted Zone; however, that prohibition has ceased to have validity and practical content. Foreigners who acquire ownership of land and waters located in national territory will continue to do so subject to the requirement of executing an agreement before the Ministry of Foreign Affairs, the so-called Calvo Clause. Such agreement provides that the interested foreigner must consider himself as a national with respect to all property he acquires and waive the right to invoke the protection of his government in connection with such property. For additional information, please contact our experts, click here or send an email to: Javier Lizardi, Partner: jlizardi@vwys.com.mx April 2013. This past April 23 the Chamber of Deputies approved the pronouncement of reform of article 27 of the Political Constitution, with the purpose of allowing foreigners to acquire residential property on the coast and borders, on a strip of 100 kilometers from the borders and 50 on the coasts, the so-called "Restricted Zone", provided that its use is for residential purposes. The pronouncement explains that, historically, foreigners have been prohibited from acquiring land in the Restricted Zone; however, that prohibition has ceased to have validity and practical content. Foreigners who acquire ownership of land and waters located in national territory will continue to do so subject to the requirement of executing an agreement before the Ministry of Foreign Affairs, the so-called Calvo Clause. Such agreement provides that the interested foreigner must consider himself as a national with respect to all property he acquires and waive the right to invoke the protection of his government in connection with such property. For additional information, please contact our experts, click here or send an email to: Javier Lizardi, Partner: jlizardi@vwys.com.mx
