Understanding the Mexican Fideicomiso Trust

Buying Real Estate in Mexico as a Foreigner: Understanding the Fideicomiso Trust

If you're a foreigner considering purchasing property in Mexico, especially in stunning coastal areas or near the borders, you might have come across the term "Fideicomiso." But what exactly is it, and why do you need one? This guide will answer your questions, provide clarity, and ensure you feel confident moving forward with your real estate investment in Mexico.

Why Can’t Foreigners Own Land in Restricted Zones?

Under the Mexican Constitution (Article 27, Section I), foreigners cannot directly own land within 100 kilometers (about 62 miles) of any border or 50 kilometers (about 31 miles) from the coastline. This area is known as the "restricted zone." However, foreign buyers can still legally acquire and enjoy property in these areas by establishing a Fideicomiso, or real estate trust, through a Mexican bank or financial institution.

What is a Fideicomiso?

A Fideicomiso is a real estate trust agreement between the property buyer (you, the foreign investor), a Mexican bank or financial institution (which acts as the trustee), and the seller. This trust grants you all ownership rights, allowing you to:

✔️ Buy, sell, lease, or bequeath the property as you wish.
✔️ Make improvements or build on the land.
✔️ Enjoy the property just as a Mexican national would.
✔️ Ensure legal security for your investment.

The Fideicomiso is valid for 50 years and is renewable. It’s essential to know that the bank does not own your property—it simply holds the title on your behalf, ensuring your rights are protected under Mexican law.

How Do You Set Up a Fideicomiso?

The process of establishing a Fideicomiso involves several steps and legal requirements, including:

1. Choosing a Mexican Bank or financial institution – Select a reputable bank to act as your trustee (e.g., Banamex, BBVA, Santander, HSBC, BIM, BANBAJIO etc.).

2. Obtaining a Permit from the Mexican Government – The Secretaría de Relaciones Exteriores (SRE) must authorize the trust. This permit is requested by the trustee.

3. Drafting the Trust Agreement – This document outlines key details such as:

   • The name and nationality of the property owner (you).

   • The name of the bank (trustee) holding the title.

   • The beneficiaries (you and your heirs, if applicable).

   • The exact property details (location, size, boundaries, etc.).

4. Paying the Required Fees – Includes government permit fees, bank trustee fees, and notary fees.

5. Finalizing the Trust in a Public Deed – The agreement must be formalized before a Mexican notary public and recorded in the Public Registry of Property.

What Are the Costs Involved?

The costs of setting up a Fideicomiso vary depending on the bank and property appraisal, but typical expenses include:

💰 Permit from SRE: Approximately $1,000 - $1,500 USD.
💰 Bank Setup Fee: Ranges from $500 - $2,000 USD.
💰 Annual Trust Maintenance Fee: Around $500 - $700 USD.
💰 Notary and Registration Fees: Varies by property appraisal and location.

Is the Fideicomiso Safe?

Absolutely! The Fideicomiso is a government-regulated legal structure that ensures your ownership rights. Many foreign investors have successfully used this system to own property in popular destinations such as Cancun, Playa del Carmen, Tulum, Puerto Vallarta, and Los Cabos among other popular destinations.

Can You Sell or Transfer the Property?

Yes! As beneficiary you have full rights to sell the property at any time. The new buyer can assume your existing trust or establish a new one. You can also assign heirs to inherit the property without going through complex probate processes.

How We Can Help

Navigating Mexican real estate laws can be complex, but our team of real estate lawyers is here to guide you through every step. Whether you need assistance setting up your Fideicomiso, reviewing contracts, or ensuring compliance with Mexican regulations, we provide professional legal services tailored to foreign investors.

✅ Expert Legal Guidance – We specialize in helping foreigners buy property in Mexico safely and legally.
✅ Personalized Assistance – We handle all the paperwork and ensure a smooth transaction.
✅ Peace of Mind – We protect your investment, so you can enjoy your dream home in Mexico hassle-free.

Contact Us Today!

Ready to make your real estate dream a reality in Mexico? Contact us now for a consultation and let us handle the legal side while you focus on enjoying your new property.