Laws Affecting Mexican Investment

As of December 1993, important changes favoring foreign investment include the right to purchase land outright even in the restricted zones. Until now investors have been reluctant to invest in areas where the real estate could not be used as direct security for their investments. The right to purchase without a "fideicomiso" (Trust) does not include residential property for individual homes. Under the new law a foreign investor could legally purchase, in his own
name, a tract of land to be developed as a residential subdivision.

The individual lots, however, would require the use of a "fideicomiso" if purchased by foreigners. If, for instance, the foreign developer wished to retain one of the lots in his subdivision for himself for the construction of his own residence, then he too would require a "fideicomiso" for that tract of property.

Other major changes designed to attract foreign capital include the right for profits from foreign investment to be withdrawn from Mexico and sent to the country of origin of the foreign investor.

Also, foreign investors are guaranteed the same rights and restrictions as similar businesses owned or operated by nationals. Property and businesses owned by foreigners will be protected from expropriation under extensive legislation allowing expropriation only for reason of public domain and may not be enacted in a discriminatory manner.

Approvals and Permits

Working within the Mexican System is an art. Much of the predevelopment work at Maravilla has been accomplished already and with great success. It truly cannot be overemphasized the benefit of this work being in place. The permits and approvals that are already in place ensure not only that your resort is achievable, but that progress can begin immediately.

Secured permits and approvals include:
- Approved residential water permits
- Approved Environmental Impact Report
- Approved Tract Maps
- Approved Routing Plan
- Approved Subdivision Plan
- All necessary permits for initial infrastructure
- Entitled for Resort building, including golf course
- Fidelity US title insurance in place (Not easily obtained in Mexico)
- Recently received permits for entry and exit ramps to new 4 lane highway