What is a fideicomiso?
A fideicomiso is a Mexican bank trust that lets a foreign buyer hold residential property in Mexico's restricted zone — the land within 50 km of the coast or 100 km of a border. A Mexican bank holds title as trustee and the buyer is the beneficiary.
Last updated · Buying & ownership glossary
About Fideicomiso
Mexico's Constitution does not allow foreigners to hold direct title to land in the restricted zone, which takes in most beachfront and surf-town property. The fideicomiso is the standard route around that: a Mexican bank holds legal title in trust, and the buyer, as beneficiary, keeps the rights to use, rent out, improve, sell and pass on the property.
Setting one up needs a permit from Mexico's Ministry of Foreign Affairs (SRE). The trust runs for up to 50 years and can be renewed, and the bank charges a set-up fee and an annual fee for acting as trustee.
Property in the restricted zone that is used for business rather than as a residence is usually held through a Mexican company instead of a fideicomiso.
- Also called
- Mexican bank trust, bank trust
- Where it applies
- Mexico
This is general information, not legal advice. Confirm with a licensed local attorney before you buy.
Related terms
- Restricted zone (Mexico)
- Mexico's restricted zone is the strip of land within 50 km of the coastline and 100 km of the land borders, where foreigners may not hold direct title to land. They hold homes there through a fideicomiso, or business property through a Mexican company.
- ZOFEMAT (Mexico)
- ZOFEMAT (Zona Federal Marítimo Terrestre) is Mexico's federal beach zone: the 20-metre strip of land running inland from the high-tide line along the sea. It is federal property and cannot be owned; private use of it needs a federal concession.
- Ejido
- An ejido is communal farmland in Mexico, granted to a rural community under the country's land reform. Ejido land cannot simply be sold to an outsider: it has to be converted to private ownership (dominio pleno) and titled first.
- Escritura pública
- An escritura pública is a public deed: the formal document, drawn up and certified by a notary, that transfers ownership of real estate in Spanish- and Portuguese-speaking countries. It is then recorded in the public property registry.
- Notary (notario)
- In Latin America and much of Europe, a notary (notario, notário) is a legal professional with public authority to draft, certify and record deeds, including the deed for a property sale — a far larger role than a notary public in the United States.