What is a Fideicomiso?
A fideicomiso is a Mexican bank trust mandated by Article 27 of the Mexican Constitution and the Foreign Investment Law of 1973. It is the legal mechanism by which foreign nationals (non-Mexican citizens) can hold beneficial title to real estate located within Mexico's "restricted zone."
The Restricted Zone
The restricted zone is defined as:
- Within 100 km (62 miles) of any Mexican border
- Within 50 km (31 miles) of any coastline (Pacific, Gulf of Mexico, Caribbean, Sea of Cortez)
All of Baja California — both Norte and Sur — falls within the restricted zone. So does virtually every coastal destination in Mexico (Cancún, Cabo, Puerto Vallarta, the Mayan Riviera, Acapulco, etc.).
How the Trust Works
- The fiduciary bank holds legal title to the property.
- The foreign buyer is the named beneficiary (fideicomisario).
- The buyer has full rights to use, occupy, lease, modify, sell, or pass the property to heirs.
- The trust is issued for a 50-year initial term and is renewable indefinitely for additional 50-year periods.
- Annual trustee fees are estimated at about $500–$700 USD; each bank quotes its own.
Costs (estimates only — each office, bank and notary sets its final amount when you pay)
- Service fee (Mexico Trust Services) — varies by complexity
- SRE permit fee — paid to the Mexican government
- Bank setup fee — one-time, paid to the fiduciary bank
- Annual trustee fee — estimated at about $500–$700 USD/year
- Notary fees — paid to the closing notary
- Property acquisition tax (ISAI) — set by each municipality on a progressive scale; see our estimated closing costs by town
- Avalúo (appraisal) — paid to the appraiser
- Predial (property tax) — annual, paid to the municipality
Timeline
Typical timelines run 60–120 days from application to closing, depending on the bank, the property's documentation status, and how quickly the SRE permit is issued.
Common Questions
Is a fideicomiso safe?
Yes. Fideicomisos are heavily regulated by BANXICO and the SRE. The fiduciary bank holds title in trust and has fiduciary duty to the beneficiary. The trust is renewable indefinitely.
Can I rent or sell a property held in a fideicomiso?
Yes. The beneficiary has the right to lease the property and to sell it. The new buyer may take direct title (if Mexican) or take over the trust beneficiary position.
Do I need to travel to Mexico?
No. With a notarized and apostilled Power of Attorney (POA), Mexico Trust Services and the trustee bank can complete the entire process on your behalf.
What happens to the property when I die?
The trust continues. The beneficiary position passes to the heirs named in the trust contract.