If you are a foreigner who has looked at property on the Mexican coast, you have run into the term. It sounds like a ban, but in practice it is just a different procedure.
What the law says
Article 27 of the Constitution states that foreigners may not acquire direct title to land within a strip of 100 kilometers (62 miles) along the borders and 50 kilometers (31 miles) along the beaches. That strip is called the restricted zone.
Why it exists
It is a historical provision meant to protect national territory. What changed over time was how it coexists with foreign investment.
What it covers
The entire Baja California peninsula falls inside it, as does the Sonora coast. Rosarito, Ensenada and Tijuana are in the restricted zone twice over: border and coast.
How you buy inside it
- Mexican citizens: directly, with no restriction.
- Foreigners, residential use: through a bank trust (fideicomiso).
- Mexican companies: may acquire property for non-residential purposes.
What doesn’t change
With a fideicomiso you can use, rent, sell and pass on the property. The difference is whose name is in the registry, not who enjoys the property.
Before you sign, consult a notary public: that is who gives the transaction legal certainty.
This page explains general rules and is not legal or tax advice. Before you sign, consult a Mexican notary public or attorney.