What is a Fideicomiso? Complete Guide for Foreign Buyers
Everything you need to know about Mexico’s bank trust system — costs, rights, setup process, and how it protects your investment.
Why Foreigners Need a Fideicomiso in Mexico
The Mexican Constitution restricts direct foreign ownership of property within the “restricted zone” — 50 km from any coastline or 100 km from any international border. The fideicomiso (bank trust) was created as the legal solution: it allows foreigners to hold all ownership rights through a Mexican bank acting as trustee.
This is not a lease or rental arrangement. You are the beneficiary of the trust — meaning you have the full right to use, rent, remodel, sell, or will the property to your heirs.
Fideicomiso vs Direct Title (Escritura)
| Feature | Fideicomiso | Direct Title |
|---|---|---|
| Required for coastal zone? | Yes | No (inland only) |
| Duration | 50 years, renewable | Permanent |
| Annual fee | $500–$700/yr | None |
| Rights granted | Full ownership rights | Full ownership |
| Transferable? | Yes | Yes |
| Mortgage possible? | Through Mexican banks | Yes |
Fideicomiso Setup: Step-by-Step
Frequently Asked Questions
No. Your rights as beneficiary are protected under Mexican law. The bank is only the legal trustee — they cannot sell, use, or encumber your property without your authorization.
You simply renew it. Renewal is routine and costs similar to the original setup. There is no limit on renewals.
Yes. You can name any beneficiary — US citizens included. This is one of the key estate planning benefits.
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