It’s a question that many of you have asked, and the answer lies in understanding a unique Mexican legal concept: the “fideicomiso” (pronounced fee – dey – koh – mee – soh).
Whether you’re dreaming of a beachfront villa or a cozy home near the coastline, buying a property in Mexico’s restricted zones as a foreigner is both possible and straightforward with the right knowledge.
In this article, I’ll demystify the fideicomiso process as well as the concept of “restricted zone”, offering a clear, professional guide for foreigners looking to make their Mexican property dream a reality.
What is the “Restricted Zone”?
Restricted zones are the areas within 100 km of Mexico’s borders or 50 km of its coastlines, where direct foreign ownership is restricted (as per the Mexican Constitution). Having said that, the fideicomiso or trust agreement with a Mexican bank allows foreigners to buy and invest in Mexico.
Contrary to a common misconception, a fideicomiso is not a lease—it grants the foreign buyer full ownership rights, just through a trust structure rather than direct title ownership. This legal framework ensures compliance with Mexican property laws while offering the same control, benefits, and protections as direct ownership.
What is a Fideicomiso?
A fideicomiso is not a real estate trust agreement in the way it is commonly understood in the U.S. or Canada. Instead, it is a bank trust that serves as a legal vehicle for foreign ownership of property within Mexico’s restricted zones (within 50 km of the coast and 100 km of the borders). It designed to comply with Mexican laws regarding foreign property ownership.
How Does Fideicomiso Work If You Buy a Property in Mexico?
Establishing the trust: A Mexican bank acts as the trustee, holding the deed to the property on behalf of the foreign buyer, who is the trust’s beneficiary. Under a fideicomiso, the bank holds the property for the foreign buyer, but the buyer retains all ownership rights and is valid for 50 years and can be renewed indefinitely.
Do You Have Full Control Over Your Property?
The answer is yes. As the beneficiary, you have complete control over the property. This includes the rights to sell, lease, renovate, or pass it on to heirs.
Why is Fideicomiso Essential?
Fideicomiso is not just a legal requirement; it’s a security measure for your investment. It protects your property rights, ensuring secure ownership without legal uncertainties. Fideicomiso provides legal protection, giving you peace of mind under Mexican law.
I can assist with setting up your fideicomiso and connecting you with a reputable Mexican bank. I work with clients worldwide relocating to Los Cabos, Mexico, and I absolutely love it!
Contact me today – WhatsApp for faster response times +52 624-264-0097
2024-04-06 15:37:14
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