Buying property in Mexico can be a smooth and secure process when buyers understand the country’s legal requirements. For foreigners, one of the most important aspects is understanding the fideicomiso in Mexico—a legal trust that allows non-Mexican citizens to acquire property in restricted zones, such as coastal or border areas, while maintaining full ownership rights through a Mexican bank.
What is a Fideicomiso?
A fideicomiso is a legal trust agreement established between three parties: the buyer (beneficiary), the seller (trustor), and a Mexican bank (trustee). The bank holds the title of the property on behalf of the foreign buyer, who retains all ownership rights, including the ability to sell, rent, or transfer the property at any time. This structure is fully recognized and regulated by Mexican law.
Why is it required?
According to the Mexican Constitution, foreigners cannot directly own property within 50 kilometers of the coast or 100 kilometers of international borders. The fideicomiso was created to make real estate ownership possible in these areas while ensuring national protection and legal security for the buyer.
How does the process work?
The buyer selects a Mexican bank authorized to act as trustee. Then, a notary public prepares the trust deed, reviews all documents, verifies the property’s legal status, and registers the fideicomiso before the Public Registry of Property. The notary also ensures compliance with the Ministry of Foreign Affairs and calculates the applicable taxes and fees.
Why work with a notary?
A notary public guarantees that every step is valid under Mexican law. From reviewing the trust terms to final registration, their supervision ensures transparency and legal certainty.