Fideicomiso Trusts

If you're a foreigner looking to purchase property in the Riviera Maya, you may have heard of something called a "fideicomiso." In this blog post, we'll explain what a fideicomiso is and how it can help you legally own real estate in Mexico or you can watch our short 3 min informational video linked here "Fideicomiso Trusts, How Foreigners can Legally Purchase a Property in The Riviera Maya" on YouTube.

First, it's important to understand that as of 1824, the Mexican government designated a restricted zone within 100km of the border and 50km from the coast. This means that foreigners were not allowed to purchase land within this zone. However, in 1937, the government created a way for foreigners to legally purchase land within the restricted zone through the use of a fideicomiso.

So, what is a fideicomiso? The word "fideicomiso" is Latin and translates to "commissioned in good faith." Essentially, it's a trust that holds your property in your name, and the trust is administered by a bank on your behalf. This is how over 95% of foreigners own property in the Riviera Maya region.

With a fideicomiso, you can do all the things you would normally do with a property, such as sell it, rent it, upgrade it, renovate it, and pass it along to your loved ones. The only difference is that it's held in a trust in which you are the beneficiary. In case something unexpected were to happen to you, your property would be passed on to your heirs.

Your attorney sets up the fideicomiso for you and the fideicomiso has a cost of about 2,000 dollars to initiate (which is included in the closing costs) and has a yearly administrative cost of about 500 dollars a year. The Fideicomiso is renewed every 50 years in perpetuity (which means forever) and is done by filling out a simple form.

While there is another way for foreigners to own property in this region, which is setting up a Mexican corporation, it involves slightly higher fees and for this reason the fideicomiso is the preferred path of choice.

In conclusion, a fideicomiso is a trust that allows foreigners to legally purchase property in the restricted zone of the Riviera Maya. It keeps your property legally safe and you can do all the things you would normally do with a property. If you have any questions about the process, please feel free to reach out to us at MyCasa Real Estate. We are experts in Real Estate in the Riviera Maya and look forward to having you as our neighbors soon : )

About the Author:

Professor Raul Morales is a distinguished figure in the real estate industry, bringing a wealth of expertise and insights to his readers. As the former Vice President of Communications for AMPI (Asociación Mexicana de Profesionales Inmobiliarios), the equivalent of the National Association of Realtors in Mexico, he has been at the forefront of shaping real estate practices in the country. His deep understanding of the industry is further enriched by his role as a Professor of Real Estate Negotiations, where he imparts knowledge in the prestigious AMPI Real Estate Licensing Diploma Certification Course. With a career marked by leadership and educational contributions, Professor Morales is not only an expert in his field but also a guiding force in shaping the future of real estate in Mexico and is currently implementing a video enhanced MLS like system in Mexico.