Strategic structuring for cross-border real estate investments: Tax-efficient models for the Mexico, US and Canada corridor in 2025–2026

Today, investing across borders requires more than buying a property and choosing an entity. It requires a strategy that protects assets, reduces tax exposure, and allows investors to operate confidently in three jurisdictions with very different rules.

Simple structures are becoming the standard

Governments are pushing for transparency, and investors prefer clean structures that reduce risk and make reporting easier.

• US LLCs remain the preferred entities for real estate assets. When properly elected, they can align pass-through treatment with Mexican tax reporting in an efficient way.
• Canadian LPs are rising again, especially for multi-investor projects that need neutrality, predictable rules, and flexibility in governance.
• Mexican entities continue to be useful for inbound investment but require careful planning to avoid accidental permanent establishment.

The message is simple: clarity beats complexity.

Real protection goes beyond an entity

Many believe that forming an LLC or a Mexican company is enough. It isn’t. True protection across borders comes from integrating:

Well-designed trusts for succession and asset protection;

• Clear funding and loan documentation;
• Treaty-aligned profit distribution planning; and 
• Mechanisms that avoid multi-country probate procedures.

A US trust owning an LLC can protect assets from political shifts, reduce exposure to US estate tax, and make inheritance efficient for families spread across North America.

Three trends in 2025

1. Tighter enforcement by US and Canada on foreign owners of real estate.
2. Higher estate tax risk for Mexicans who buy US real estate directly.
3. More scrutiny in Mexico for outbound structures that lack economic substance.

A good structure anticipates these risks before they become problems.

What the smartest investors are doing

• Moving personal holdings into LLCs owned by trusts, avoiding probate, and strengthening asset protection.
• Using Canadian limited partners (LPs) to manage joint ventures in a neutral and flexible way.
• Consolidating scattered portfolios into clean holding structures that simplify reporting in all three countries.
• Repatriating profits using treaty-compliant strategies that significantly reduce tax cost.

A final perspective

Cross-border real estate in 2025 is ultimately about creating clarity and confidence. When a structure is well planned, it is stable and easy to operate. It protects without complicating, and aligns tax efficiency with long-term goals.

In a region where rules continue to evolve, one principle remains true: a well-designed structure does more than save taxes, it gives investors peace of mind on all sides of the borders.

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Prof Sergio Guerrero Rosas, Managing Director at Guerrero y Santana, has over 25 years’ experience advising companies from SMEs to multinationals, as well as individuals, on tax and estate planning. He is also Global Vice Chair of the GGI Trust & Estate Planning (TEP) Practice Group.