TAILIEUCHUNG - Real Estate Investment in Mexico

As neighbors and partners in the North American Free Trade Agreement (NAFTA), the . and Mexico share a broad and expanding trade relationship. Since the implementation of NAFTA, trade between Mexico and the . has tripled. Up to 1 million Americans currently live in Mexico and more than 18,000 companies with . investment have operations in Mexico. In fact, the . accounts for 47 percent of all foreign investment in Mexico. With gross domestic product growth of 3 percent in 2007 and percent in 2008 (compared to percent in the . in 2007 and percent in 2008),. | Real Estate Investment in Mexico Introduction As neighbors and partners in the North American Free Trade Agreement NAFTA the . and Mexico share a broad and expanding trade relationship. Since the implementation of NAFTA trade between Mexico and the . has tripled. Up to 1 million Americans currently live in Mexico and more than 18 000 companies with . investment have operations in Mexico. In fact the . accounts for 47 percent of all foreign investment in Mexico. With gross domestic product growth of 3 percent in 2007 and percent in 2008 compared to percent in the . in 2007 and percent in 2008 Mexico presents an attractive target for foreign investment but the longterm impact of the current global financial crisis on such investment remains unclear. Concerns stemming from Mexico s colonial past and its proximity to and dealings with the . have shaped real property rights in Mexico. Today the laws and regulations developed to address these concerns can cause difficult maneuvering for an uninformed party. Understanding the unique aspects of Mexican real property law can help prevent unnecessary stumbling blocks for anyone seeking to invest in real property in Mexico. Mexico s real Property Framework The Mexican legal system is a mixture of . constitutional theory within a civil law system. Mexico s legal framework concerning real property includes the Federal Constitution Federal Civil Code state civil codes municipal laws and ordinances. Additionally the Foreign Investment Law and Foreign Investment Law Regulations regulate foreign investment. In Mexico real property is classified as either public private or communal the nature of which will affect the property s use and potential alienation. While land in Mexico can be owned in a manner akin to fee-simple in the . in Mexico all rights to minerals oil and gas are held by the government to provide an equitable distribution of the public wealth to take care of its conservation to .

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