Owning Property
Foreign ownership of property in Mexico

The Mexican Constitution regulates the ownership of land and states that areas within a 100 kilometers from the border or 50 kilometers from the coast have a special designation.

These areas are known as restricted zones. Mexican Foreign Investment Law, which was ratified on December 28, 1993, allows a foreigner or foreign corporation to obtain the rights of ownership through a fiduciary trust known as Fidecomiso, the equivalent of a US beneficiary trust.

The Foreigner/Purchaser is named as the beneficiary of the trust and has all the rights of ownership. The bank has no rights of ownership in the property.

The deed does not form part of the bank's assets. Even if a bank were to fail or close, the deeds in trust would be transferred to another bank and would not be subject to bank creditor claims.

The Foreigner/Purchaser has all the rights of ownership through the Fidecomiso including, but not restricted to selling, renting, improving, disposing or even destroying.

Fact 1: You can name a U.S. Corporation as the beneficiary of the trust.

Fact 2: You can name primary and secondary beneficiaries as well, so the property can pass to descendants without the need for a will or probate.

Fact 3: You have all the rights of ownership, including, but not restricted to selling, renting, improving, disposing or even destroying,

Fact 4: Title insurance is available for real estate purchases in Mexico

WHAT IS A BANK TRUST (FIDEICOMISO)?

A "Fideicomiso" (Bank Trust) is a trust agreement created for the benefit of a foreign buyer, executed between a Mexican bank and the seller of property in the "restricted zone" (Mexican Coastlines & Borders).

Foreign buyers cannot own real estate in the restricted zone due to Constitutional restrictions. The bank, as trustee, has a fiduciary obligation (Bank Obligation) to follow instructions given by the foreigner buyer who is the trust beneficiary.

Is it Risky? Not at all. The buyer enjoys full ownership rights and legal protection of a property owner, while the bank holds title to the property.

The foreigner buyer is entitled to use, enjoy, rent and even sell the property that is held in trust at its market value to any eligible buyer. Trusts are established for initial 50 years periods and can be renewed indefinitely for additional 50 years periods.