Real Estate & Legal Topics

Foreign Investment Law

Changes to the amount that can be invested in Mexico by foreigners were made in May

On May 12, federal authorities determined the new maximum amount which foreigners can invest, either directly or indirectly. This means that money belonging to big investors might leave the country as part of the earnings. According to Eddie Villanueva Marrufo, rector of the Technological University of Cancun and a specialist in accounting, these laws were made by the federal government to make it easier for big companies to invest in the Mexico.

General Resolution 17, emitted by the National Commission on Foreign Investment, determined the updated amount of the assets in reference to the ninth article of the Foreign Investment Law. For a foreigner to invest greater than 49% of the total value, they would have to ask permission to the Commission on Foreign Investment, who determines the limit.

Previously, this maximum amount in dollars was approximately $3 billion, but with the new modifications, the limit will become $4 billion.

“The companies are asking for more assistance and openness from the federal government, and these measures are for them to be able to invest and earn more money,” explained the specialist.

He added that these measures could apply in Quintana Roo to the large hotel chains, but shouldn´t affect small investors. “The law focuses on big companies, like hotel chains, which might come to invest,” he indicated.

It is important to mention that this law applies to any country that Mexico has a trade agreement with, including the United States, Canada, Japan, Chile, Peru, Costa Rica, El Salvador, Guatemala, Honduras and  Nicaragua. Therefore, investors from other countries will not benefit in the same way.

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