# New Restricted Zone Laws



## caseyh (Nov 2, 2013)

Does anyone know how they affect "multiple use" properties.

The old laws allowed residential property to be purchased through a corporation (instead of a trust) if it was also used for business. I think it also restricted the size of property that could be considered residential. 

If the new law is for residential properties does it affect multiple use properties. 

Does anyone know if the new laws allow a residential property to be used as a commercial property without the trust. 

I want to but 5-20 hectares near Chetumal. I will first build a small home, then a botanical garden an finally a hostel. The hostel will be geared towards travelers interested in permaculture and volunteer opportunities with local families. 

Is it too soon to know if this can be done on a residential property. It is in the middle of nowhere if that matters.


----------



## sparks (Jun 17, 2007)

The new New Restricted Zone Laws don't exist. So far it is only a proposal that needs to pass another house and be approved by each of the states. If it happens I'm sure there are many adjustments to be made


----------



## caseyh (Nov 2, 2013)

Fair enough. But they have been written.


----------



## citlali (Mar 4, 2013)

The fact that they have been written is irrelevant as things change in Mexico..do not get implemented and so on so as long as they are not on the books they do not exist.


----------



## Longford (May 25, 2012)

No such laws or change to the constitution exist. Period.


----------



## RVGRINGO (May 16, 2007)

The first step for the OP is to become Residente Permanente and be able to work or do business in Mexico. Nevertheless, I think he is a dreamer and will lose everything.


----------



## caseyh (Nov 2, 2013)

RVGRINGO said:


> The first step for the OP is to become Residente Permanente and be able to work or do business in Mexico.


 This is total BS. 

Nobody needs to be a resident to buy land in Mexico or get a business license!




RVGRINGO said:


> Nevertheless, I think he is a dreamer and will lose everything.


OH I SEE YOUR PROBLEM

I am a dreamer and you're not (sucks for you) .


----------



## sparks (Jun 17, 2007)

caseyh said:


> This is total BS.
> 
> Nobody needs to be a resident to buy land in Mexico or get a business license!


You'd better look that one up again when it comes to working


----------



## caseyh (Nov 2, 2013)

The law was written with this language (translated obviously...and probably not by a professional legal translator) but it might shed some light on the situation. 

B) The Government will grant the same Right to foreigners in the restricted zones of hundred kilometers along the borders and of fifty from the beaches, providing that the Secretary of Exterior Relations agrees and emits a permit when the foreigner has the intention of using the property as a private dwelling. 

Key phrase: "the same Right to foreigners" and "using the property as a private dwelling"

So the question stands. How does this apply to mixed use dwellings. 
I.e. Can Mexicans have a business in their home? I know many do...but is it legal or informal?

I suspect legal. The old law (current law) is basically the same. The part about "has the intention of using the property as a private dwelling" currently means just that. Basically, commercial use does not "undo" residential use. 

I was really hoping someone had recently asked their lawyer about this.


----------



## GARYJ65 (Feb 9, 2013)

caseyh said:


> The law was written with this language (translated obviously...and probably not by a professional legal translator) but it might shed some light on the situation. B) The Government will grant the same Right to foreigners in the restricted zones of hundred kilometers along the borders and of fifty from the beaches, providing that the Secretary of Exterior Relations agrees and emits a permit when the foreigner has the intention of using the property as a private dwelling. Key phrase: "the same Right to foreigners" and "using the property as a private dwelling" So the question stands. How does this apply to mixed use dwellings. I.e. Can Mexicans have a business in their home? I know many do...but is it legal or informal? I suspect legal. The old law (current law) is basically the same. The part about "has the intention of using the property as a private dwelling" currently means just that. Basically, commercial use does not "undo" residential use. I was really hoping someone had recently asked their lawyer about this.


Mexicans are allowed to have a business in their home, if that business is open to the public or will be advertised outside, you need a permit
There are commercial and residential areas


----------



## Detailman (Aug 27, 2011)

caseyh said:


> The law was written with this language (translated obviously...and probably not by a professional legal translator) but it might shed some light on the situation.
> 
> B) The Government will grant the same Right to foreigners in the restricted zones of hundred kilometers along the borders and of fifty from the beaches, providing that the Secretary of Exterior Relations agrees and emits a permit when the foreigner has the intention of using the property as a private dwelling.
> 
> ...


This forum has been around for a long time and there are literally thousands of posts on many subjects. Many of the posters have lived for years in Mexico and are very well versed in the laws of the land and general living in Mexico. Sometimes long time members will be very forthright in their comments but if you think they do so without valid reason you are very mistaken.

A general comment: There are many things that are written down as "laws, procedures, etc." but if you think you can speak to any public official and quote the "laws" or tell him that how it should be applied you are really sadly mistaken.

The law is, or will be applied to a great degree, depending on how the official feels about it on that particular day. That is Mexico. And if you think a foreigner has the same rights as a Mexican, no matter what the printed page says, you are again very much mistaken.

Get into an accident, disagreement, whatever with a local that has been around the area a long time and see where your "rights" get you. HILARIOUS! The experiences of some of my friends would make your eyes go wide, some of those experiences with the police watching what the perpetrators were doing to the expats.

Law versus reality.


----------



## caseyh (Nov 2, 2013)

sparks said:


> You'd better look that one up again when it comes to working


Working and having a business license are not the same. I know you can't get a job. You can however manage your company. Thats part of NAFTA!

It is not clean and clear cut. I have friends in Tulum that hire locals to stand at their side all day so that their competitors don't accuse them of "working". 

It will have to become more clear in the future once the points system for residency is finalized. It includes a method of becoming a resident if, "you are operating a business in Mexico that legally creates at least 5 jobs for Mexicans... is enough to apply for a Residente Temporal card". 

How do you explain "Operating a business" as a method of getting residency if it is mandatory to start the business?


----------



## caseyh (Nov 2, 2013)

Detailman said:


> This forum has been around for a long time and there are literally thousands of posts on many subjects. Many of the posters have lived for years in Mexico and are very well versed in the laws of the land and general living in Mexico. Sometimes long time members will be very forthright in their comments but if you think they do so without valid reason you are very mistaken.
> 
> A general comment: There are many things that are written down as "laws, procedures, etc." but if you think you can speak to any public official and quote the "laws" or tell him that how it should be applied you are really sadly mistaken.
> 
> ...


I understand all of this. I have had my car confiscated, been detained for nothing, forced to pay for services never rendered, seen friends evicted from their shops and homes illegally etc. etc. etc. 

I was not being ungrateful. If thats how it was interpreted I am sorry.

I was also not trying to imply that "rights" have anything to do with it.

My point is that if the law has been written and we know the language used. We also know how it compares to the current language (and reality). 

I understand nobody can tell for sure! That does not mean we (or better yet lawyers) can not speculate with a little confidence. 

For instance, lots of people used business instead of trusts to buy their properties. Some have virtually no commercial activity. If and when the law changes these people may want to transfer/sell the title to their personal name. If they do so, they would end up having a business on a residential property. I can't imagine this would be a problem. Therefore I deduce that businesses will be allowed to operate from a private residence. This is further supported by the idea that "on paper" the rights will be the same as residents who are currently allowed to do this.

I admit this is some seriously fuzzy logic, used on a very fuzzy situation but I figure thousands of people are in this situation and at least one has asked their lawyer (preemptively) what will happen.


----------



## Detailman (Aug 27, 2011)

I didn't think you were ungrateful. Just wanted to make sure that you knew how things really worked and didn't have blinders on.

Your first sentence shows that you are aware of some of the realities of life in Mexico. All life is full of positives and negatives and each person puts a different emphasis on some items rather than on others. That is why faced with the exact same situation people can come to opposite conclusions that are both correct for them as individuals.

As long as you examine things with an open mind and ask the right questions and weigh the answers you should be fine. Just keep your eyes open as it is much easier to avoid falling into a pit than it is to try and crawl out of one.


----------



## caseyh (Nov 2, 2013)

Detailman said:


> I didn't think you were ungrateful. Just wanted to make sure that you knew how things really worked and didn't have blinders on.
> 
> Your first sentence shows that you are aware of some of the realities of life in Mexico. All life is full of positives and negatives and each person puts a different emphasis on some items rather than on others. That is why faced with the exact same situation people can come to opposite conclusions that are both correct for them as individuals.
> 
> As long as you examine things with an open mind and ask the right questions and weigh the answers you should be fine. Just keep your eyes open as it is much easier to avoid falling into a pit than it is to try and crawl out of one.


Thanks. Great advice.


----------



## caseyh (Nov 2, 2013)

Thanks for a very informative post. Its a very speculative topic so thanks for not shying away.

I don't see anything that explains the use of businesses instead of trust for acquisition of property in the free zone. I know this is done. It may be a "quasi legal" systems but I though it was official. 

It was my understanding that the trust was only used for lots and traditional residence. I think if you buy acreage for development it must be done through a company even if you plan on living on it. This is where my confusion comes from. It sounds like the "new" laws are geared towards retirees (residential properties more specifically) not investors. It would be nice if someday I could buy a large property to live on AND later run a business. I think they are gonna make the company buy the land and let me live on it. The difference being what order the money for incorporation is spent. I have high income and low savings so getting down there where I can save money first would be very helpful. I am not optimistic and pinching my pennies in anticipation.


----------



## sparks (Jun 17, 2007)

Not sure where you'd find the info but I've heard the other option for the restricted zone is via a corporation. Other than that I don't remember the specifics. Again ... not Ejido land, only normalized


----------



## caseyh (Nov 2, 2013)

sparks said:


> Not sure where you'd find the info but I've heard the other option for the restricted zone is via a corporation. Other than that I don't remember the specifics. Again ... not Ejido land, only normalized


I do too much research! I found the info in a published paper about the effects of the Bahia Chetumal Manatee Sanctuary on land use in the ejido. Go figure

I have known all along the title is just the first of my problems. The property is in the preserve and that always complicates things. Its a classic problem in Latin America when bureaucrats draw park boundaries around entire towns. This park does not even register in most protected area databases. I was looking for park policies when I found it.

Years ago, I wanted to know how much the indigenous along the Miskito Coast of Honduras charged for their dug out canoes. I suspected searching the internet was futile. The first result was a Masters Thesis on the history of Dugout canoe economy on the Miskito Coast. Unbelievable! Ever since I _ass_ume that all info is out there...I am rarely disappointed!


----------

