What's a Fideicomiso

In this section we explain what a Fideicomiso is, why it's used, and the benefits.

Understanding the Fideicomiso: The Mexican Bank Trust

A fideicomiso, or Mexican Bank Trust, is a legal structure that permits foreign individuals to own property in Mexico’s restricted zones, including coastal and border regions. It serves as a solution for foreigners to maintain property rights while complying with Mexican regulations. In this arrangement, a Mexican bank holds the title to the property, while the foreign buyer (the beneficiary) retains all ownership rights, such as the ability to use, sell, or lease the property.

Key Points:

Restricted Zones:
- Mexican law prohibits direct property ownership by foreigners within 100 kilometers of borders and 50 kilometers of coastlines.
The Role of the Bank:
- A Mexican bank serves as the trustee, holding the legal title to the property.
Foreign Buyer as Beneficiary:
- The foreign buyer acts as the beneficiary, keeping all rights to use, modify, sell, or transfer the property.
Long-Term Arrangement:
- Fideicomisos are generally established for a duration of 50 years and can be renewed. They are also transferable in the event of the property being sold.
Purpose:
- The fideicomiso was designed to promote foreign investment in Mexico while honoring its constitutional land ownership laws.