Can Foreigners Own Property In Mexico?
Updated: Feb 9
Perhaps you've heard this term when discussing Mexican real estate. Let me explain what a fideicomiso is...
I'm sorry to disappoint, despite the fancy word, a Fideicomiso is simply a bank trust that is required for non-Mexican buyer who purchase property in what are referred to as "restricted zones". These include all land within 100 km of a border and 50 km from the coast. The 20 second history behind it is related to American colonization before the Mexican revolution. The Mexican government wanted to prevent this issue so they made certain parts of the country off-limits to foreign buyers. In the 70's they realized that foreign investment is positive for economic growth and looked for a creative way to work around the existing constitution. The fideicomiso solved everything.
The trust gives the buyer the same rights and responsibilities as a direct homeowner. It can also offer protection from asset seizure without the need for a costly corporation. It is renewable every 50 years and is not to be confused with a lease. You own your home through a trust just as you can own property through a corporation. If the bank holding your trust dissolves during your term there is no risk to you. Your trust agreement would automatically be taken over by another bank.
The cost can range somewhat so it's good to shop around but typically you can expect to pay approx $2,000 - $3,000 USD to have it set up and $500/year for administrative fees.
This is a very simplified explanation but that's the long and short of it. If you have specific questions I haven't covered here please send me an email from the contact page.