History of rights as a foreigner The Mexican Constitution was drafted and passed into law in 1917. Although there have been amendments instituted since its inception, this original document is still the supreme law of the land, just like in the US. In the Constitution, there is a provision that creates an area known as the Restricted Zone. The Zone is 100 km (62 miles) from the borders and 50 km (or 31 miles) from the coasts. In this Restricted Zone, only Mexicans could own land. After so many years of being a possession of someone else, this provision was done for their own protection, and at the time, it made sense. However, in the 60s the Mexican Government realized that there was a lot more money outside of Mexico than inside. In1970, inan effort to create foreign investment, a Bill was passed into law which created a legal and viable opportunity. The Bill stated that a trust, called a ‘Fideicomiso’ in Spanish, could be set up with the foreigner as the sole and exclusive beneficiary. Since a Mexican bank must administer the trust, it satisfies the requirements to purchase land in the restricted zone. The beneficiary (foreigner) could control the land. Because of the 1970 Bill, major foreign investment flowed into Mexico. Not only Cancun, but also Cozumel, Acapulco, Puerto Vallarta, Ixtapa, and Cabo-San Lucas began development thanks to this law. In 1994 the newest Bill was passed pertaining to the Restricted Zone. This law states that a Mexican Corporation, wholly owned by foreigners, can be a legal Mexican entity. Now, you can own a corporation and hold all its assets. In addition to the confusion that results from the different types of corporations available to form (Limited Liability Corps, S-Corps, Partnerships, to name just a few), there are specific situations in which it is beneficial to own property for sale in Playa Del Carmen through a trust and when the benefits of a corporation are better. The important item to note is with either vehicle, you are completely protected as long as the process is done properly, with guarantees going back to the 1917 Constitution. This is how nearly every American Multinational Corporation has a presence in Mexico.