Fideicomiso in Mexico: What Foreign Property Buyers Need to Know

A fideicomiso is a bank trust commonly used when a foreign buyer acquires residential real estate inside Mexico's restricted zone. The Mexican bank acts as trustee while the foreign buyer is the beneficiary with contractual rights to use, enjoy, lease, sell and transfer the beneficial interest subject to the trust terms and applicable law.

Mexico's Secretariat of Foreign Affairs states that foreigners cannot acquire direct ownership of land within 50 kilometers of the beaches or 100 kilometers of the borders. Residential use in that restricted zone is permitted through a fideicomiso authorized under the Foreign Investment Law.

The trust is established through a Mexican banking institution and formalized as part of the closing process. Its exact fees, bank requirements and processing times can vary, so buyers should obtain current information for the specific transaction.

When comparing properties, ask whether an existing fideicomiso can be assigned or whether a new trust will be created, who the trustee bank is, what annual fees apply and what documents are needed for the buyer's nationality and ownership structure.

ALTEPA REALTY can help coordinate the property search while your notario, bank and legal advisers handle the formal trust and closing documentation. This article is educational and not legal advice.