Mexico Fideicomiso Trust: Complete Guide for Foreign Buyers in Restricted Zone

The Restricted Zone and the Fideicomiso

Under Article 27 of the Mexican Constitution, foreign nationals cannot directly own real property within 100 kilometers of international borders or 50 kilometers of coastlines. This zona restringida covers virtually all desirable coastal areas. The fideicomiso (bank trust), established under the Foreign Investment Law of 1993 and the General Law of Credit Titles and Operations, provides foreign buyers full beneficial ownership through a Mexican bank trustee.

How It Works

A Mexican bank holds legal title as fiduciario (trustee). You, as fideicomisario (beneficiary), have all practical ownership rights: use, enjoyment, rental income, modifications, and sale. You designate substitute beneficiaries (heirs). The bank has no economic interest and cannot interfere with your use.

The trust requires a permit from the Secretaria de Relaciones Exteriores (SRE) under the Foreign Investment Law. Processing takes 5-15 business days.

Duration and Costs

The fideicomiso lasts 50 years and is renewable indefinitely under Article 13 of the Foreign Investment Law. Renewal has never been denied for a trust in good standing.

Establishment costs include the SRE permit fee (approximately 2,500-3,500 MXN), bank establishment fee ($500-1,500 USD), notary fees ($1,000-3,000 USD), and ISABI acquisition tax (2-4.5% depending on state). The annual bank trustee fee runs $500-1,000 USD.

Major fideicomiso banks include Scotiabank, BBVA Mexico, Citibanamex, Banorte, and HSBC Mexico. Scotiabank and BBVA are generally the most experienced with foreign buyer trusts.

The Purchase Process

Negotiate and sign a promesa de compraventa. Apply for the SRE permit through your notario. Establish the trust with your chosen bank. The property transfers from the seller into the trust with you as beneficiary. The notario handles registration with the Registro Publico de la Propiedad.

Buying a Property Already in a Fideicomiso

When buying from another foreign seller, you can assign the existing trust to yourself as new beneficiary through a cesion de derechos (assignment of rights), which is faster and cheaper than a new trust, or cancel and establish a new trust if changing banks.

Outside the Restricted Zone

For interior properties (Mexico City, Guadalajara, San Miguel de Allende), foreigners buy directly without a fideicomiso. Some use a Mexican corporation (SA de CV) for liability or tax purposes.

For fideicomiso guidance and bank comparisons, Bektu provides resources at https://bektu.com.