Let's Go2Mazatlan - Articles

Immigration Regulations - Activities perform by a foreigner in
Mexico regardless of their migratory status.
By Alberto Lazo, Francisco Wilson and Karem García • Robles Lazo y Gallardo Law Firm
Photos by Jesús de Avila· May 2009

• Introduction;

Any foreigner acquires, by the fact of entering legally into our country, a determined migratory quality and characteristic, being the first the genre and the last the specie. This division can be troublesome for foreigners to understand, but it is important to be clarified before a foreigner engages in any kind of activity in Mexico.

The migratory quality is defined by the Mexican Immigration laws as “the legal status under which the Mexican authorities accept the entrance or stay of a foreign person in the national territory”, considering that the qualities recognized by the Mexican law are the following:

1. Non Immigrant (“No Inmigrante”), for those individuals who enter into the country temporarily, under an Immigration form “FM-3”.
   
   
2. Immigrant (“Inmigrante”), for those who enter into the country with the purpose of staying, while they acquire the quality of permanent resident (“Inmigrado”). The immigration form to acquire this status is officially recognized as the “FM-2”. Once you complete five years with an FM-3 you can apply for an FM-2 which is the next step in the process of becoming an “Inmigrado”.
   
   
3. Permanent Resident (“Inmigrado”), is the quality by which the foreigner acquires certain rights of definitive residence in our country as any other Mexican National. For instance, permission from immigration is no longer needed to work. However, other obligations still apply regarding foreign investment as we will see further.

It is relevant to indicate that Mexican laws do not oblige the foreigners to surrender to their natural citizenship to obtain the permanent resident status.

Each one of the explained migratory qualities has different varieties, called “migratory characteristics”, which are established according to the activities performed by the foreigners in Mexico.

The quality of Non Immigrant has the following migratory characteristics (11): tourist (FM-T), transmigrant, visitors (FM-3) (which has 8 different types itself), minister of religion, political exile, refugee, student, distinguished visitor, local visitor, provisional visitor and representatives; while the quality of Immigrant is composed by the migratory characteristics (9) of rentist, investor, professional, officer, scientist, technician, family member, artists or sportsmen and similar.

• Main Differences between Non Immigrant Visitor (FM3), Immigrant, and a permanent resident (Inmigrado):

Immigrants and Non Immigrants Visitors are similar because their visas must specify each activity that the foreigner will perform. Both visas allow the foreigner to reside in Mexico for a one-year period, which may be renewed up to four times. However, immigrants can obtain permanent residence status after a certain period (5 years with an FM2) while non immigrant visitors cannot. On the other hand, permanent residents (Inmigrados) are allowed to perform any lawful activity in Mexico without a specific authorization and their visas do not need be renewed. Permanent residents are not allowed to vote under the Mexican Constitution.

• Activities and Restrictions to Foreigners:

The treatment for foreigners in Mexican law is based on the “principle of legality”, which means that those activities not permitted by law are prohibited, in the sense that “in order to perform other activities different than those expressly allowed, a foreigner requires permission from the Ministry of Interior (Secretaria de Gobernación)”. The Law also providesthat “the foreigners, with independence of their migratory quality, by themselves or through a representative, and without permission granted by the Ministry of Interior, shall be able to: (i) acquire titles and securities of fixed or variable income, stocks and certificates of participation, (ii) acquire assets for the practicing of entrepreneurial and similar activities, (iii) acquire real estate property or goods (urban or rural) and the rights on them, as well as the derived fiduciary rights, (iv) make bank deposits and (v) appear before notary public to incorporate companies, associations and civil associations.”

There are special foreign investment regulations that indicate which restrictions apply to each case:

(i) Titles and securities of fixed or variable income, including stocks of companies (“sociedades anónimas”) and certificates of participation (“sociedades de responsabilidad limitada”), as long as the corporate purpose of the company is not expressly prohibited or exclusively reserved for Mexican nationals or companies with the non-foreigners clause, and considering the limits of foreign investment participation for those activities contemplated by law.

(ii) Assets for the practicing of entrepreneurial activities (inventory, machinery, real estate property); and

(iii) Real estate Property. The only restrictions to acquire real estate property are established in the Foreign Investment Law, which provides two acquisition areas for foreigners: Restricted Zone and Non- Restricted Zone.

Non-Restricted Zone: Foreigners may directly acquire real property outside the Restricted Zone, provided that it is qualified for private ownership and then only subject to the limitations of use, means of holding and size permitted by law.

Real Estate qualified for Foreigners is that which is not within those limiting areas (physical location: Restricted Zone, Ejidos, Agrarian Communities and similar) or used for those limited activities (i.e. primary activities such as Agrarian, Ranching, Farming, Forest) restricted to Mexican Government ownership or Mexican individuals sole ownership, and the ownership of which is permitted by either (i) Direct title to the foreign individual or (ii) through a Mexican incorporated entity or through a long term irrevocable title transfer (Mexican) bank Trust, as the case may be.

It is important to highlight that foreigners do not require a permit from the Ministry of Foreign Relations/Affairs of Mexico to rent (obtain in rental) real property located inside or outside the Restricted Zone. However they do need this permit if the rental is for more than 10 years and the rental property is located in the Restricted Zone.

Restricted Zone: Foreigners may not directly acquire ownership of real property in the Restricted Zone. (100 km from the border into the territory and 50 km. from the sea limit into the territory) but through a long term irrevocable title transfer (Mexican) bank trust mechanism or through a Mexican incorporated entity (with certain limitations related to the use of the relevant property).

(iv) Bank Deposits.  At any bank, the foreigners shall be able to make deposits in Mexican accounts. 
           
(v) Appear before notary public to incorporate companies, associations and civil associations.  However, any foreigner who appears to the incorporation of a company must demonstrate his legal stay in the country before the notary or corporate broker who formalizes such incorporation.  The migratory document must be presented duly valid and with no alterations.  The exception for the incorporation of companies is presented in the case of the Non – Immigrants – Transmigrants, who shall not be entitled to perform such activities. 

Robles, Lazo y Gallardo - Law Firm
E-mail: jgallardo@rlg.com.mx

Feedback about this article

• Robles, Lazo y Gallardo, S.C. is a Law Firm of specialists in various areas of Law, including Corporate Law, Real Estate, Immigration, Foreign Investment, among others. The Firm is integrated with a group of highly qualified attorneys and has offices in Guadalajara (Privada del Niño No. 676, Fraccionamiento Camino Real, telephone number 33-3121-3010) and Puerto Vallarta (Carretera a Mismaloya No. 479 interior 107, Edificio Scala. Telephone number 322-223-3218).E-mail: jgallardo@rlg.com.mx

More about Mazatlan: