Fideicomiso Trusts - what you need to know in 2025

What is a Fideicomiso?

Definition and Purpose

A fideicomiso is a Mexican property trust that enables foreigners to purchase real estate in restricted zones—areas within 50 kilometers of the coastline or 100 kilometers of international borders. Since Mexican law prohibits direct foreign ownership in these zones, the fideicomiso acts as a workaround, ensuring legal ownership rights for international buyers. This framework doesn't prevent you from managing the property however you choose. You can resell, renovate, rent it, just like you would any other property. The property is legally yours and no government entity can assume ownership. You have full legal ownership rights.

Legal Framework

The fideicomiso system is governed by Mexican property and trust laws, which protect foreign investors while adhering to constitutional restrictions. Under this framework, Mexican banks serve as trustees, holding the property title on behalf of the foreign buyer.

How a Fideicomiso Works

The Role of Mexican Banks

In a fideicomiso, a Mexican bank acts as the trustee. The bank holds the property title while granting all ownership rights—including selling, leasing, or passing the property to heirs—to the foreign buyer. The buyer retains complete control over the property.

Step-by-Step Process

1. Select the Property: Identify the property you wish to purchase in Mexico’s restricted zone.

2. Engage a Notary and Legal Advisors: Collaborate with professionals to ensure the transaction is legally sound. Mycasa's preferred teams of attorneys are experts in all aspects of the acquisition process, including setting up the trust in time for closing.

3. Set Up the Fideicomiso: The bank establishes the trust and registers it with the Mexican Public Registry.

4. Finalize the Purchase: Sign the trust agreement and complete the transaction, transferring the title to the bank as trustee.

5. Maintain the Trust: Pay annual fees and comply with trust-related regulations.

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Benefits of Using a Fideicomiso

Secure Ownership

The fideicomiso system provides a legal pathway for foreigners to securely own property in restricted zones, eliminating concerns about constitutional restrictions.

Flexibility in Property Management

With a fideicomiso, foreign buyers have full rights to use, lease, sell, or transfer the property, making it a versatile option for personal and investment purposes.

Estate Planning Advantages

A fideicomiso simplifies estate planning by allowing property ownership to be transferred seamlessly to heirs, avoiding complex legal proceedings.

Key Reasons Trustee Banks Are Essential Legal Representation - ensuring property rights for foreginers Transparency - all transactions undergo rigorous checks Rapid Communication - ensuring deals progress smoothly Due Diligence - ensuring clear legal status, free from liens Protection from Federal Beach Tax - ensuring buyers arent caught off guard Facilitating Investment - ensuring feasibility For the full article, click the link below Javier Contreras Lighthouse Real Estate & Legal, Playa Del Carmen

Costs and Considerations

Initial Setup Fees

Setting up a fideicomiso typically costs $2,000 to $3,000. This one-time fee covers the bank’s administrative work and legal filings. 

Annual Maintenance Fees

Foreign buyers should budget for annual fideicomiso fees, which range from $550 to $1,000. These fees cover ongoing trust management by the bank.

Regulatory Compliance

While the fideicomiso offers security and flexibility, it requires adherence to Mexican laws and regulations, including timely fee payments and proper documentation.

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Frequently Asked Questions

What is a fideicomiso?

A fideicomiso is a Mexican trust that allows foreigners to own property in restricted zones by placing the title with a bank while granting ownership rights to the buyer.

How long does a fideicomiso last?

A fideicomiso lasts for 50 years and can be renewed indefinitely.

What are the costs involved in setting up a fideicomiso?

Setup costs range from $2,000 to $3,000, with annual fees of $550 to $1,000 for maintenance.

Can I use a fideicomiso for commercial property?

Yes, fideicomisos can be used for both residential and commercial property investments.

Do Mexican nationals need a fideicomiso to buy property?

No, Mexican nationals can purchase property directly without a fideicomiso.

Summary

The fideicomiso system is an essential tool for foreign investors looking to own property in Mexico’s restricted zones. It offers secure ownership, flexibility, and estate planning benefits, making it a viable option for those seeking to navigate Mexico’s real estate market. While there are costs and regulatory considerations, understanding the fideicomiso structure empowers foreign buyers to invest with confidence.

Updated 1/27/25