Learn how to purchase a home in Mexico or the U.S. as a foreigner.

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Why move to Mexico? Mexican real estate. What's fideicomiso?

Is owning property in Mexico a good idea?

What is the "Fideicomiso"? Why it's important and helpful. Do I need it?

What is the "Fideicomiso"? Why it's important and helpful. Do I need it?

Real estate is a low risk and highly profitable investment where you achieve recurring and passive income. If you are a foreigner, you will need a trust, which will protect your investment even more, since it cannot be confiscated by any person or government including the Mexican government. 

What is the "Fideicomiso"? Why it's important and helpful. Do I need it?

What is the "Fideicomiso"? Why it's important and helpful. Do I need it?

What is the "Fideicomiso"? Why it's important and helpful. Do I need it?

What is the "Fideicomiso"? Do I need it? Contract. Fideicomiso in layman's terms.

Liken to most established countries, it's for everyone's protection. 

 A "fideicomiso" is a Latin word that translates to "trust" in English. It is a legal trust structure in Mexico that allows foreigners to own property in restricted areas, such as land within 100 kilometers of the US border or 50 kilometers along the Mexican coastline. The Mexican Constitution limits direct land ownership by foreigners in these areas, but the fideicomiso provides a workaround. 

 In a fideicomiso, a Mexican bank manages the trust and the beneficiary has all the rights and responsibilities of direct ownership. This includes the ability to: 

  • Lease 
  • Sell 
  • Pass on the property 
  • Devise the property 
  • Remodel 
  • Give away 
  • Leave to heirs 
  • Exercise any legal right under the law 

The fideicomiso is usually held for 50 years and can be renewed for another 50 years. The Mexican government holds the title to the property, but the beneficiary has all the rights. The fideicomiso is not a lease and the beneficiary can't have a lien put on their lot because it's not in their name. The fideicomiso can also work like a will, allowing the beneficiary to designate heirs who will inherit the trust upon the owner's death. It can also make it easier to sell the property to another foreign buyer by changing the name in the trust. Setting up a fideicomiso can cost between $2,000 and $3,000, and there may be an annual maintenance fee of $500 to $600. Falling behind on the annual fee may result in fines and interest that must be paid before selling the property.  


 A Fideicomiso grants foreigners the right to use and enjoy property within the restricted zones. The property is held in a real estate trust, recorded under a Mexican trustee's name, typically a Mexican bank's trust department. This setup adheres to constitutional provisions that prohibit direct foreign ownership. 


Exploring property acquisition in Mexico’s restricted zones can be complex, especially for foreign investors. Primarily, foreigners have two viable options for owning property in Mexico:

  1. Establishing a Mexican Bank Trust, known as a Fideicomiso.
  2. Forming a Mexican Company to hold property assets, offering the flexibility to lease these assets.


However, it’s crucial to discern between buying property and truly owning it. In Mexico, these are distinct concepts. Many individuals purchase property but fail to secure actual ownership. Now, let’s delve into the intricacies of the Fideicomiso and its role in property ownership for foreigners.

 A Fideicomiso, or a Mexican Trust, is not a land lease agreement; it’s a legal trust structure mandated for foreigners to own property within Mexico’s restricted zones. These zones encompass land within 100 kilometers of the US border and 50 kilometers along the Mexican coastline. The Mexican Constitution restricts direct land ownership by foreigners within these zones. However, legal amendments in 1943 and the establishment of the Mexican bank trust system provide a constitutional workaround for foreigners to own residential property in these zones.

Functioning of a Fideicomiso

A Fideicomiso grants foreigners the right to use and enjoy property within the restricted zones. The property is held in a real estate trust, recorded under a Mexican trustee’s name, typically a Mexican bank’s trust department. This setup adheres to constitutional provisions that prohibit direct foreign ownership. Trustees, in exchange for an initial setup fee and subsequent annual maintenance fees, manage the trust. They cannot transfer property or beneficiary rights without the beneficiary’s written consent.

Safety and Security

The Mexican bank trust is deemed the safest method for foreigners to own real estate within the Constitutionally Restricted Zone. The rights you acquire in a bank trust are akin to those in other countries, encompassing the freedom to improve, build upon, mortgage, sell, or maintain the property as desired.

Selling Your Property

If you choose to sell your property held in a Fideicomiso, the process typically involves notifying the bank to initiate a change of beneficiary in the trust. The new buyer will then seek approval from the federal government for this change. However, if you transfer your trust beneficiary rights to a Mexican national, they can opt to take direct title, keep the property in the trust, or remove the property from the trust and assume direct ownership.

Fees

Owning property via a Fideicomiso involves certain costs:

  1. Trustee Fees: Expect to pay around $1,000 to establish the trust, with an annual fee of $700 to $1,000 for its maintenance.
  2. Permit and Registration for Foreign Investments: This fee, payable to the SRE, is approximately $1,600, but it may vary.
  3. Public Registry: Charges depend on the property’s location, typically ranging from 0.03% to 1.15% of the property’s registered value. Additional lien registration fees may also apply.
  4. Appraisal Costs: Generally, between $1,000 and $1,500.
  5. Notario Publico Fees: These vary based on the sales contract’s value.
  6. City Land Acquisition Tax: Around 2% of the purchase price.

It’s advisable to consult with a local realtor or attorney for precise cost estimations tailored to your specific scenario, as fees can fluctuate based on the property’s transactional or appraisal value.

Visa and Residency Information

What is the "Fideicomiso"? Why it's important and helpful. Do I need it?

Why do people visit the Riviera Maya?

You’ll need the right visa to make your move to Mexico legit. Tourist visas are easy to get and last for up to 180 days, but if you’re planning to stay longer, you’ll have to look into temporary or permanent residency. 


  • Temporary Resident Visa: Ideal for stays over 6 months up to 4 years. Most people obtain Temporary Residency first before applying for Permanent.


  • Permanent Resident Visa: Go for this if you’re considering making Mexico your forever home or if you can prove that you’ve held a Temporary Resident Visa for four consecutive years.


You’ll need to start the application process at a Mexican consulate or embassy in your home country. Documents required typically include proof of income or investments, a valid passport, apostilled documents, and in some cases signed bank statements.



Why do people visit the Riviera Maya?

Top 10 places to live in Mexico. No particular order.

Why do people visit the Riviera Maya?

Tulum Ruins, white sand beach, palm trees, born to be venture, riviera maya beach, sea turtles, eggs

 White sand, turquoise sea and blue sky: reasons why the beaches of the Riviera Maya are some the best in the world. No matter if you go to Puerto Morelos, Tulum or choose the popular Mamitas Beach in Playa del Carmen. The crystalline sea, beautiful sun rises and wildlife, will remain in your memory. 

The Riviera Maya in Mexico is a popular destination for vacationers and divers from around the world. It has many attractions, including beaches, archaeological sites, water sports, and natural wonders: 


  • Beaches: The Riviera Maya has white sand beaches, turquoise waters, and blue skies. Some say the beaches are among the best in the world. 
  • Archaeological sites: Visitors can explore the remains of the ancient Maya and their culture in the Yucatan Peninsula. Some say the Mayan temples and ruins are a top reason to visit, with Chichén-Itzá being the most visited site. 
  • Water sports: The Riviera Maya's natural wonders are ideal for many water sports, including snorkeling, diving, kite-surfing, kayaking, SUP, and para-sailing. 
  • Cenotes: The Riviera Maya has the largest system of underground rivers, cenotes, and caverns in the world. Cenotes were sacred places for the Maya Civilization and are part of the most extensive underground river system globally. Some say you can take guided tours of a crystal clear river that flows past stalactites and stalagmites. 
  • Other attractions: The Riviera Maya also has reefs, nature parks, and budget-friendly beach rentals. Some recommend visiting Xcaret Parks, Xel-Ha, Xplor, Xplor Fuego, all eco-Archaeological Parks, which is a 200-acre paradise with many activities and attractions. 


Others recommend El Mirador Lookout, which is a rocky seascape with natural bridges, tide pools, and stone spires that looks out onto the Caribbean Sea. 

Can a foreigner buy a house in Mexico?

Top 10 places to live in Mexico. No particular order.

Top 10 places to live in Mexico. No particular order.

Couple with keys to new home in Mexico. Can foreigners buy in Mexico? Born to be venture. home key.

 Foreigners can own property in Mexico. It's perfectly legal to own Mexican real estate. 

Learn what fideicomiso is. What is fideicomiso?

Outside the restricted zones—50 kilometers (about 31 miles) from shorelines and 100 kilometers (about 62 miles) from international borders—foreigners can hold direct deeds to property with the same rights and responsibilities as Mexican nationals. why move to Mexico?

The buyer is listed on the deed as the direct owner and can name beneficiaries, such as children, parents, or a spouse.


One can legally buy property in Mexico, including US citizens, as long as they follow certain guidelines: 


  • Restricted zones: Foreigners can't own property within 50 kilometers (31 miles) of the shoreline or 100 kilometers (62 miles) of international borders, known as the "restricted zone". This restriction was created to protect Mexico's natural resources and national security. To purchase property in the restricted zone, foreigners must either establish a Mexican corporation or buy through a bank trust (Fideicomiso). 
  • Permit: Foreigners need a permit from the Foreigner Affair's Office to own property in the interior of Mexico. 
  • Closing: All parties must be present in person at a "notario publico" (notary public) to execute the transaction. 
  • A "soft closing" where the buyer doesn't appear in person doesn't mean they own the property. 

Once outside of the restricted zones, foreigners can hold direct title to property and have the same rights and responsibilities as Mexican citizens. 

Top 10 places to live in Mexico. No particular order.

Top 10 places to live in Mexico. No particular order.

Top 10 places to live in Mexico. No particular order.

Top 10 places to live in Mexico. No particular order. Born to be venture.

  • Playa del Carmen, Quintana Roo
  • Puerto Vallarta, Jalisco
  • Mazatlán, Sinaloa 
  • Tulum, Quintana Roo
  • Merida, Yucatan
  • Mexico City
  • Lake Chapala, Jalisco
  • San Miguel de Allende, Guanajuato
  • Oaxaca 

Why are people moving to Mexico?

Why are people moving to Mexico?

Why are people moving to Mexico?

Family happily moving to Mexico. Packing to change to Tulum, excited family moving day.

Combination of culture, climate, landscapes, and low cost of living attracts people to move to Mexico. There are legal considerations to manage when relocating, including residency, healthcare, and housing. The expat lifestyle in Mexico often brings a better quality of life! 


People move to Mexico for many reasons, including: 

  • Cost of living: Mexico has lower costs than the US, including housing, groceries, and utilities. 
  • Healthcare: Mexico offers affordable, high-quality healthcare, and medical tourism is popular with Americans and Canadians. 
  • Climate: Mexico has a favorable climate year-round, with tropical beaches in some places. 
  • Culture: Mexico has a rich culture, vibrant festivals, and delicious cuisine. 
  • Pace of life: Mexico offers a slower pace of life. 
  • Proximity to the US: Mexico's proximity to the US makes it easier for expats to visit home. 
  • Other reasons: Other reasons include tax advantages, easy visa applications, and a large presence of expats. 

Why do people move to Mexico?

Why are people moving to Mexico?

Why are people moving to Mexico?

This is a big one and the main driver of US immigration. Many Americans are finding it more and more difficult to pay their bills. The cost of living in Mexico remains a fraction of what it is in the US, particularly when it comes to rent, groceries, utilities, and transportation. 

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  • OUR ROLE
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  • CONTACT US
  • OUR STORY. OUR WHY.
  • Disclaimers
  • RENTALS
  • Fideicomiso
  • INFORMATION SUPPORT

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