Part 1. Fideicomiso
Thinking about buying a home or investment property in Mexico? Whether you’re dreaming of a beachside escape or planning for your future, owning real estate here is secure—as long as you understand how the process works.
Although buying property in Mexico is straightforward, it has its own rules—especially for foreigners. That’s where a trusted real estate agent and a licensed notary come in. Your agent will walk you through each step, while the notary ensures everything is done legally and properly. Together, they help make the experience safe, smooth, and stress-free.
Important note: This series is for general info only and isn’t a substitute for legal or financial advice. Be sure to consult a local expert before making any decisions.
Let’s Start with the Basics: What’s a Fideicomiso?
If you’re not a Mexican citizen and you’re buying property near the beach or border (within 50 km of the coast or 100 km of an international border), you’ll need a Fideicomiso—also known as a bank trust.
So, what does that mean?
A Mexican bank holds the title on your behalf, while granting you full rights to use, lease, remodel, sell, or pass the property onto your heirs. The trust is valid for 50 years and can be renewed indefinitely. In short, it’s a safe and standard way for foreigners to own property in Mexico’s “Restricted Zone.”
Step-by-Step: Setting Up a Fideicomiso in Mexico
This guide is the help you understand the process. A good Real Estate Advisor will work in conjunction with the Notary Public to set this up on your behalf.
1. Choose a Mexican Bank
Start by selecting a Mexican bank authorized to act as a trustee (fiduciario). Options like BBVA, Banorte, Santander, and Scotiabank are common choices. Your real estate agent or lawyer can help recommend one that suits your needs.
2. Apply for a Permit from the Mexican Government
Next, the bank submits a request to the Ministry of Foreign Affairs (Secretaría de Relaciones Exteriores). This permit allows the bank to act as trustee and hold the property in trust for you.
3. Bank Prepares the Trust Agreement
After receiving the permit (which usually takes a few weeks), the bank drafts the trust agreement. This document outlines your rights. You can use the property, name beneficiaries, and manage it as if you held the title yourself.
4. Work with a Notary Public
Every real estate transaction in Mexico must go through a notary public, who is a government-appointed lawyer. The notary validates the documents, ensures the trust follows all legal guidelines, and registers it with the Public Registry of Property.
5. Pay Closing Costs and Fees
At this stage, you’ll pay the setup fee (typically $500–$1,500 USD), annual trust fees (usually $400–$800 USD), and closing costs (about 5–8% of the purchase price, which covers notary fees, taxes, and permits).
6. Register the Trust
Once everything is signed and submitted, the notary registers the trust. At that point, you officially become the legal beneficiary of the property.
Good to Know:
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- The trust is valid for 50 years and can be renewed indefinitely.
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- You’re free to sell, transfer, or inherit the property.
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- Naming successor beneficiaries during setup helps avoid probate later.
Coming up next in Part 2: We’ll cover The Purchasing Process and what to expect from offer to closing. Stay tuned!
email: jj.mexhome.com
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About JJ – Real Estate Advisor
Purchase with confidence! Contact JJ Martinez, Real Estate Advisor with more than 30 years of experience. Member of AMPI, NAR and Flex MLS.