My partner and I are common-law in Canada. Does that protect us when buying in Mexico?

Common-law relationships are not recognized under Mexico's property law for purposes of automatic property rights. If you buy a Mexican property jointly (both names on the fideicomiso as beneficiaries), you both have rights through the trust document itself — the issue is not your relationship status but rather that you cannot rely on common-law status to create property rights that weren't explicitly established in the purchase documents. The key protections for unmarried couples in Mexico are: (1) Both names on the fideicomiso as co-beneficiaries, with a clear succession clause specifying what happens on one partner's death; (2) A Mexican will (testamento) naming your partner as inheritor of your beneficial interest in the fideicomiso; (3) A pre-purchase agreement or cohabitation agreement with a Mexican property clause, drafted under Canadian law but explicitly referencing the Mexican trust. Without these steps, your unmarried partner has no automatic claim to the Mexican property if you die or if you separate. Mexico does recognize 'concubinage' under federal family law, but the recognition is inconsistent and difficult to rely on for property purposes without legal documentation.

What happens to our Mexican condo if we separate?

This is where buying foreign property as a couple gets complicated. If both partners are named as co-beneficiaries of the fideicomiso, neither can sell, transfer, or encumber the property without the other's written consent — because both names are on the trust document registered with the Mexican notario. There is no equivalent of a Canadian family law court ordering a property sale. To liquidate or split a jointly held Mexican property after separation, you need either: (1) Mutual agreement — both sign the necessary paperwork to sell the property and divide proceeds; or (2) A court order — in Mexico, where a Mexican court must adjudicate the property dispute under Mexican law. This process can take 2–5 years and is expensive. The practical implication: separating couples who jointly own a Mexican property frequently end up with a negotiated solution because neither party wants a multi-year Mexican legal battle. But the negotiating position is weaker for the party who needs the money faster. A pre-purchase agreement that specifies what happens in separation — including a forced buyout mechanism or sale timeline — is valuable insurance.

What should a pre-purchase agreement for foreign property include?

A pre-purchase agreement (often structured as a cohabitation agreement amendment or a standalone foreign property agreement) for a couple buying abroad should address: (1) Ownership percentages — if contributions are unequal (one partner provides 70% of funds), state this explicitly and specify whether the title reflects this or whether you have chosen equal title with a compensating financial arrangement; (2) Separation provisions — what happens if you separate before selling the property: forced sale within X months, right of first refusal by one partner to buy out the other at appraised value, buyout pricing methodology; (3) Death scenarios — who inherits the property or the trust interest, whether the surviving partner has right to remain, whether children from prior relationships have any claim; (4) Ongoing cost sharing — who pays the fideicomiso fees, HOA, property tax, maintenance, and in what proportions; (5) Rental income split — how rental income is divided, who controls management decisions; (6) Exit trigger events — what events require a sale (serious illness, job relocation, mutual agreement, judicial separation). Have this agreement drafted by a Canadian family law lawyer who has worked with foreign property, and ideally reviewed by a lawyer in the destination country for enforceability considerations.

We contributed different amounts to the purchase. How do we protect the partner who contributed more?

Unequal financial contributions to a foreign property purchase are invisible to the destination country's property registry — the registry records whoever is on title (or the fideicomiso beneficiaries) in whatever shares are registered. If you and your partner buy a Mexican condo 70/30 but put both names on the fideicomiso as equal co-beneficiaries, the registry sees equal ownership. If the relationship ends and you try to argue for a 70% share based on your contribution, you are arguing against the official title document. The correct approach for unequal contributions is to either: (1) Register the title in the proportionate shares (70/30 or whatever the actual contribution split was) — which the fideicomiso can accommodate with explicit percentage shares for each beneficiary; or (2) Register equal title but document the unequal contribution through a private cohabitation agreement or loan agreement (one partner loans the other the additional amount, secured by the property interest), creating a financial claim against the excess contribution on separation. Option 1 is cleaner and more legally robust. Option 2 is more commonly used when partners prefer the simplicity of equal title but want financial protection. Both are better than ignoring the issue.

What if one of us is a Canadian citizen and the other is not — does that create problems?

It can, depending on the destination country. Most popular property markets for Canadians (Mexico, Portugal, Costa Rica, Dominican Republic, Panama) allow foreigners of any nationality to own property — there is no Canadian citizenship requirement. However, some countries have residency or nationality requirements for certain property types, and some visa pathways are tied to the nationality of the applicant. In Mexico, both partners must be named on the fideicomiso separately — there is no derivative ownership through a Canadian spouse. Each person's name on the trust must have the proper documentation. For the non-Canadian partner, their documentation requirements (passport, tax identification) may differ. In Portugal, the D7 Visa can be applied for by both partners as primary and dependent — nationality determines which country's criminal background check is required, but both EU and non-EU nationals can qualify. In countries where one partner qualifies for a specific residency visa (e.g., a Canadian with a Pensionado visa) but the other does not, the visa may extend to the legal spouse or registered partner but not to a common-law partner — another reason marriage simplifies cross-border planning.

Last updated: March 26, 2026

Reviewed on March 2026 by the Compass Abroad editorial team

Buying Foreign Property as a Canadian Couple: Legal Protections You Need

Q: How does forced heirship in France affect a property we own together?

France's réserve héréditaire is one of the most important planning considerations for couples buying French property. If you own a French property jointly and one partner dies, the forced heirship rules ensure that the deceased partner's children (including children from previous relationships) automatically inherit their reserved share — 50% if one child, 67% collectively for two children. This means the surviving partner can end up co-owning the French property with their stepchildren. The EU Succession Regulation 650/2012 provides a solution for Canadian buyers: by including a clause in your French will specifying that Canadian law governs your succession, you can elect out of French forced heirship rules entirely. Canada does not have forced heirship, so this election means your children receive only what you choose to leave them. This election must be explicit in your French will — it does not apply by default. Couples buying French property should execute a French will (testament authentique through a French notaire) with this election clause before completing their purchase. The SCI corporate structure provides additional flexibility by holding the property in a company whose shares can be transferred under more flexible rules.

Most couples buying abroad default to joint ownership — and most don't have a pre-purchase agreement that specifies what happens if they separate or one partner dies. Common-law relationships are not recognized for property rights in Mexico, Latin America, or most of Europe. Forced heirship in France can override your intentions. The protections you need in place before you sign are not complex — but they are specific.

Buying foreign property as a couple introduces legal complexity that most Canadian couples haven't encountered. Unlike a Canadian property where family law provides a framework for division, foreign property disputes must be resolved under the laws of the country where the property sits — which may take years and cost more than the property is worth. This article works through the specific steps that protect both partners.

Key Takeaways

Joint ownership is the most common structure for couples buying foreign property — but it creates complications in separation and divorce scenarios that are dramatically more complex than splitting a Canadian asset.
Common-law relationships are not recognized in Mexico, most of Latin America, or most of Europe for property rights purposes. If you are not legally married, individual ownership with a domestic will and fideicomiso beneficiary designation is often the correct structure.
In Mexico, the fideicomiso allows you to name a substitute beneficiary — this is effectively a will substitute for Mexican property and should be named carefully: your spouse, your estate, or your children.
Forced heirship in France and some other European countries can override your intentions for a jointly owned property — your children can claim their reserved share regardless of what your joint ownership structure says.
If you separate after buying foreign property together, liquidating or transferring the property requires cooperation from both parties — under the laws of the country where the property sits, not Canadian family law.
A pre-purchase agreement (or cohabitation agreement with a foreign property clause) can establish in writing what happens to the property in separation, divorce, or death scenarios — before the emotional difficulty of a dispute makes agreement impossible.
Unequal contributions to a foreign property purchase (one partner contributes 70% of the cost) are not automatically recognized by the destination country's property registry — title shares are what the registry says they are.

Key Legal Facts for Couples Buying Abroad

Common-law recognition in Mexico: Not recognized for property rights — civil marriage or domestic will required(Mexican Civil Code)
Fideicomiso beneficiary designation: Can name spouse, children, or estate — functions as will substitute for Mexican coastal property(Ley de Instituciones de Crédito)
Forced heirship: France: 50–75% of estate reserved for children regardless of joint ownership structure(Code Civil Art. 912)
EU Succession Regulation: Canadian buyers can elect nationality law — avoids forced heirship in EU countries(EU Reg 650/2012)
Costa Rica community property: Marriage creates community property rights on assets acquired after marriage(Costa Rica Civil Code)
Portugal common-law (união de facto): Recognized after 2 years cohabitation — property rights attach(Lei 7/2001 Portugal)
Pre-purchase agreement jurisdiction: Should be governed by Canadian law but reference destination country rules explicitly(Cross-border legal practice)
Joint tenancy vs tenancy in common: Joint tenancy includes right of survivorship; tenancy in common does not — choice affects inheritance(Property law general principle)

Ownership Structure Options for Couples

Ownership structures for couples buying foreign property
Ownership Structure	Advantages	Disadvantages	Best For
Joint tenancy (equal shares with right of survivorship)	Surviving partner automatically inherits full property without probate in most jurisdictions	Divorce/separation requires both partners to agree to transfer or sale; can't will your share separately	Married couples with aligned succession goals and low separation risk
Tenancy in common (specified shares, no survivorship)	Each partner can will their share independently; unequal contributions can be reflected	On death, the deceased's share goes to estate — may trigger probate in destination country	Couples with unequal contributions, blended families, or different succession intentions
Individual ownership (one name on title)	Simplest — one decision-maker; cleaner estate planning; surviving partner protects via will	Non-owning partner has no title rights; exposed if relationship ends without legal protection	Common-law couples in non-recognizing countries; situations where one partner's finances are cleaner
Mexican fideicomiso with dual beneficiaries	Both partners can be listed as beneficiaries of the trust; fideicomiso can name substitute beneficiaries	Trust adds recurring cost; both beneficiaries must consent to major decisions	Mexican coastal property — standard structure for married couples
Corporate structure (Mexican S.A. de C.V. or equivalent)	Company holds property; both partners hold shares with customizable exit provisions	Complex, expensive to maintain; requires annual reporting; adds legal layers	High-value properties, multiple investors, or business-purpose purchases

Common-Law Recognition: The Country-by-Country Picture

Canada's recognition of common-law relationships — with the same property rights and family law protections as marriage — is not universal. Most of the countries where Canadians buy property have different frameworks, and assuming your Canadian common-law status travels with you is one of the most common mistakes in cross-border property planning.

Mexico:Mexican civil law does not recognize common-law relationships for property rights purposes. The legal concept of "concubinage" exists under federal family law but is inconsistently applied and difficult to rely on for foreign property. Unmarried couples buying in Mexico should ensure both names are explicitly on the fideicomiso, name each other as substitute beneficiaries in the trust document, and execute Mexican wills naming each other.

Portugal: More progressive — Portugal's união de facto law recognizes cohabiting couples after 2 years of documented cohabitation and grants them many of the same rights as married couples, including property rights and succession. For couples who have been living together for 2+ years, this provides genuine legal protection in Portugal. Costa Rica also has legal recognition of civil unions and cohabitation that can affect property rights.

Dominican Republic: Not recognized. Foreign unmarried couples should structure ownership clearly in the purchase documentation.

Italy and France: PACS (France) and civil unions (Italy) have some recognition, but the nuances differ from Canadian common-law status. EU Succession Regulation allows Canadians to elect their nationality law for succession — relevant for common-law couples who want Canadian succession rules to govern their foreign estate.

The Mexican Fideicomiso: Your Best Protection Tool

For couples buying Mexican coastal property, the fideicomiso bank trust is more flexible than most buyers realize. The trust document specifies beneficiaries — the people who hold the beneficial rights to the property — and can include both partners as co-beneficiaries, as well as substitute beneficiaries who inherit if both primary beneficiaries die.

The beneficiary designation in the fideicomiso is effectively a will substitute for the Mexican property. If one partner dies, the surviving co-beneficiary typically inherits the full beneficial interest automatically, without going through the Mexican succession process — much like a joint tenancy right of survivorship. This is one of the most valuable features of the fideicomiso for couples.

Key actions when buying Mexican property as a couple: name both partners as co-beneficiaries, name substitute beneficiaries (children, or each other's estate), and execute a Mexican will that governs any gap the fideicomiso document does not cover. The Mexican property inheritance guide covers the full picture.

Forced Heirship: The European Complication

Couples buying in France, Italy, or other civil law countries with forced heirship provisions need to understand how these rules interact with joint ownership. France's réserve héréditaireis the most aggressive — 50–75% of the estate is automatically reserved for children. If a couple owns a French property jointly and one partner dies, the deceased's share is subject to forced heirship regardless of what the surviving partner intended.

The solution for Canadian couples in France is the EU Succession Regulation election: include a clause in your French will specifying that Canadian law governs your succession. Since Canada has no forced heirship, your children receive only what you explicitly designate. This must be in a formal French will (testament authentique) executed before a French notaire. Both partners should execute this document.

Italy has similar forced heirship provisions (legittima), with the same EU Succession Regulation solution available to Canadian buyers. The estate planning for foreign property guide covers all major destination countries.

Buying Abroad Together? Get the Legal Structure Right First.

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Buying Property Abroad as a Couple: Frequently Asked Questions

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