Buying Property in Mexico
Through a Fideicomiso:
What Foreigners Need to Know

For many foreigners, the dream of owning a home near the beaches of Mexico or investing in a vacation property is within reach. However, purchasing property in Mexico, especially in coastal or border areas known as the “restricted zone,” comes with its own legal framework. One of the most common and secure methods for foreigners to hold real estate in Mexico is through a fideicomiso — a real estate trust agreement that offers both legal protection and flexibility.

In this article, we’ll explain how a fideicomiso in Mexico works, walk you through each stage of the process, and share practical legal tips to help you feel confident as you move forward with your purchase.

What Is a Fideicomiso in Mexico?

A fideicomiso is a legal arrangement similar to a living trust, specifically designed for foreign individuals who want to own residential property in restricted zones of Mexico. Under Mexican law, foreigners cannot own land directly within 50 kilometers of the coast or 100 kilometers of the borders. Instead, they must acquire property through a bank trust (fideicomiso), which holds the title on their behalf. 

Key features:

  • A Mexican bank (the trustee) holds legal title to the property.
  • You, as the foreign buyer, are named the beneficiary of the trust.
  • You retain full rights to use, rent, improve, sell, or pass on the property to your heirs.

The bank does not own the property in the traditional sense — it simply holds the title and acts according to your instructions. This structure has been used for decades and offers strong legal protection for international buyers.

Step-by-Step: How to Buy Through a Fideicomiso

 

Offer and Sales Agreement Signing

Once you’ve chosen a property, both buyer and seller sign an offer to purchase or a purchase-sale agreement. This is a key moment where terms are clarified and expectations are set. It’s essential that this document is carefully reviewed to protect your interests and avoid future misunderstandings.

 

Legal Review and File Preparation

A thorough legal review of the property is conducted, including verification of title, liens, zoning, and permits. 

Having a team familiar with the legal nuances of Mexican property law can be extremely helpful during this phase.

 

Signing the Fideicomiso Before a Notary

The fideicomiso deed is signed before a Mexican Notary Public, who is a government-appointed legal authority.

Both parties should understand their obligations clearly before signing. This step legally formalizes your rights as the beneficiary of the trust.

Registration of the Deed

After signing, the deed must be registered with:

• The Public Registry of Property
• The Cadastral Office

This ensures that the fideicomiso is publicly recorded and legally binding. While this stage can take some time, it is crucial for the legal recognition of your ownership rights.

Your Registered Deed

Once the deed has been officially recorded, you will receive the registered copy. This document confirms that you are the rightful trust beneficiary and have legal rights to the property. It also marks the end of the formal acquisition process.

Legal Considerations

Choose the Right Bank and Notary

Not all banks offer the same level of service when acting as trustees. Ask about annual fees, renewal conditions, and transfer policies. Similarly, working with an experienced notary who understands cross-border transactions can make a significant difference in the smoothness of the process.

Review the Trust Agreement Carefully
Although the fideicomiso provides you with all the rights of ownership, the fine print matters. Ensure the trust is renewable (usually up to 50 years, renewable for another 50), and that your beneficiaries are clearly stated.

 

Budget for All Costs
Beyond the purchase price, costs may include:
• Trust setup fee
• Annual trustee fee
• Legal fees
• Acquisition tax (typically around 2-3%)
• Notarial and registry fees

Common Misconceptions

Common Misconception:

“If I buy through a trust, I won’t really own the property.”

Reality:

As the trust beneficiary, you have full ownership rights — including the ability to sell, rent, remodel, or inherit the property.

Conclusion

Why the Fideicomiso Offers Peace of Mind

 

While the process of buying property in Mexico through a fideicomiso may seem complex at first, it’s a well-established and legally sound path for foreigners. It ensures that you can enjoy your new home or investment with full peace of mind, knowing that your rights are recognized and protected.

 

Whether it’s waking up to ocean views or building your ideal getaway, buying property in Mexico can be more than a transaction — it can be the beginning of your new chapter.

 

That said, navigating this process without professional support can be overwhelming. Having guidance from someone familiar with both the legal requirements and the practical side of the transaction can help prevent costly mistakes — and ensure your new adventure in Mexico starts on the right foot.