When it comes to investing in real estate in Mexico, foreign buyers often face an important decision: purchasing through a restricted zone trust (fideicomiso) or by establishing a Mexican corporation. While both options are legal, they serve different purposes and carry distinct responsibilities, costs, and legal frameworks. Choosing the right one from the start can save you time, money, and unnecessary complications.

What is a Restricted Zone Trust?

A restricted zone trust is the most common and straightforward path for foreigners buying property within 50 kilometers of the coast or 100 kilometers from the border. Since the Mexican Constitution prohibits direct ownership in these areas by foreigners, the trust offers a legal alternative.

How a Trust Works for Foreign Buyers

In this arrangement, the property title is held by a Mexican bank (the trustee), but the foreign buyer retains all rights to use, rent, modify, or sell the property. Trusts last for 50 years and are renewable. The yearly bank administration fee is generally around $600 USD, making this option low-maintenance and ideal for residential or vacation homes.

What Does a Mexican Corporation Involve?

By contrast, forming a Mexican company allows foreigners to own property outright without geographic restrictions. However, it comes with significant responsibilities. You must have at least two shareholders, register the company with the Tax Administration Service (SAT), maintain accounting records, declare taxes monthly, and comply with corporate obligations. You’ll also need a fiscal address and legal representation in Mexico.

Which Option Is Best for You?

For most residential buyers interested in real estate in Mexico, the trust offers a faster, safer, and more affordable way to acquire property. However, every case is unique and should be evaluated individually.

Make a Legally Informed Investment

Before deciding, it is vital to consult with a trusted notary who understands both options. At Notaría 129 in Yucatán, we analyze your case, explain the implications, and guide you through the entire process—giving you legal certainty every step of the way.

Contact us to receive expert advice and protect your investment with confidence.