In Mexico, foreigners can buy property within the “restricted zone,” which includes land within 50 kilometers (31 miles) of the coast or 100 kilometers (62 miles) of international borders. However, due to constitutional restrictions, direct ownership by foreigners is not allowed in these areas. To facilitate foreign ownership, Mexico established the fideicomiso, or bank trust.
Through the fideicomiso, a Mexican bank acts as the trustee, holding the property title on behalf of the foreign buyer, who retains full control over the property. The buyer can lease, sell, or transfer the property, just like any other owner. The trust is initially valid for 50 years and can be renewed indefinitely, ensuring long-term ownership. This process is safe, legal, and widely used by foreigners purchasing vacation homes or investment properties in Mexico’s coastal regions.
The cost of setting up a fideicomiso typically ranges from $500 to $1,500 USD for the initial setup, depending on the bank and location in Mexico. In addition to the setup fee, there is an annual maintenance fee, which usually ranges between $400 and $700 USD. These fees cover the administrative costs of maintaining the trust, as the bank acts as the trustee.
Some banks may also charge additional fees for renewal or changes to the trust, such as transferring it to a different beneficiary. However, the fideicomiso is a well-established and commonly used method for foreign property ownership in Mexico, making it a reliable option despite the associated costs.
Understanding the fideicomiso makes buying property in Mexico not only possible but also secure, providing a legal pathway to enjoy ownership in the country’s most desirable areas.
