A Fideicomiso is a 50-year renewable and transferable bank trust that allows foreigners to acquire full rights to own, use, improve, sell, and will property in Mexico's restricted zones. Think of it like a living or family trust in the U.S. — but specifically designed to enable property ownership for non-Mexican citizens.
A Mexican bank authorized by the government holds the title on your behalf and acts as the Trustee. However, you are the sole Beneficiary, with complete control over the property. You can:
The bank simply acts as a legal administrator, ensuring all property transactions comply with Mexican law.
No. The property is not owned by the bank or the government. The Fideicomiso is your trust. It is legally protected, recognized under the Mexican Constitution, and regulated by the Mexican Central Bank.
If your bank is sold or fails, the Fideicomiso is automatically transferred to another government-authorized bank. Your property rights are fully protected under Mexican law.
Here's how it works:
Yes. However, for property purchases, the only relevant one is the Real Estate Fideicomiso. Other types (e.g., for education or minors) do exist but are unrelated to property ownership.
There are also two structures:
Today, most banks only issue Individual Fideicomisos to protect property buyers.
Only in rare, justified cases of public interest, similar to Eminent Domain laws in the U.S. Under NAFTA/USMCA, Mexico must pay fair market value plus interest for any expropriated land.
No. Any arrangement outside a Fideicomiso (such as:
...is not legally recognized as ownership. These methods can carry serious legal risk and do not offer you property rights.
No. Mexican developers must follow the same legal process. They cannot sell property to foreigners in restricted zones without going through the subdivision and Fideicomiso setup. Any other workaround is likely illegal and should be avoided.
The only notable clause is the "long-arm clause", which prohibits you from involving your foreign government in land disputes in Mexico. (This is a standard international law principle.)
Otherwise, your rights mirror those of a Mexican citizen:
Final Tip: Always review your documents carefully and consult with a professional before purchasing. We are happy to walk you through the Fideicomiso process step-by-step.