Myth #1 If you buy property south of the border, the government can take it away.

Truth-This is not necessarily true. Yes, there have been cases where land was taken back but the root of the issue was really that “Clear Title” was never given in the first place. Many people get caught up in the excitement of purchasing a beautiful peice of paradise and leave their common sense at home! American’s can own clearly titled property throughout Latin America. The different countries have different restrictions, but as a whole ownership is much the same as it is here in the states. American’s can own beachfront property in Mexico. You will hold it in a bank trust w/you as the beneficiary. Inland you may hold w/out the bank trust. Belize offers the same benefits of ownership to foreigners as Belize nantionals. Costa Rica has very little titled beachfront property, but offers the opportunity of a “concession” which is a renewable long-term lease with the government. Concession varies so you do want to do your research. Many concessions restrict the amount of time you may actually utilize the property while offering it up in a tourism/rental capacity for the remainder. Panama has similar restrictions. Again, it’s important to do your research which includes the various restrictions as well as a title search. For example, Stewart Title is located throughout Latin American and can offer these resources.

Posted Nov. 22, 2008 by Debbie Maue