Bank Trust/Fideicomiso
A fideicomiso is a real estate trust established at a Mexican bank, allowing foreign buyers to acquire property within the restricted zones, which are areas within 50 km of the coastline and 100 km from international borders. While the bank holds the title, the foreign buyer retains all ownership rights, much like a trust in other countries.
Why is the Fideicomiso Structure Necessary?
The Mexican Constitution prohibits foreigners from directly owning property in the restricted zones. The fideicomiso was introduced as a solution to encourage foreign investment while still adhering to the constitution. Through this trust, foreigners can enjoy all the benefits of property ownership, including selling, leasing, and passing it on to heirs.
We help you open your Fideicomiso in coordination with the bank.
Choosing a Trustee Bank: a reputable Mexican bank to act as the trustee. This bank will hold the property title on your behalf.
Choosing a Notary Public: In Mexico, notaries play a pivotal role in real estate transactions. They ensure all documents are in order, verify property titles, and calculate taxes.
Submitting a Permit: The Mexican Ministry of Foreign Affairs must grant a permit to establish a fideicomiso. Your notary can assist with this application.
Drafting the Trust Agreement: Once the permit is approved, the Fideicomiso agreement is drafted, detailing the terms and conditions of the Fideicomiso.
Finalizing the Purchase: With the Fideicomiso in place, you can proceed with the property purchase, just as you would in any other real estate transaction.
We help you open your Fideicomiso in coordination with the bank.
Choosing a Trustee Bank: a reputable Mexican bank to act as the trustee. This bank will hold the property title on your behalf.
Choosing a Notary Public: In Mexico, notaries play a pivotal role in real estate transactions. They ensure all documents are in order, verify property titles, and calculate taxes.
Submitting a Permit: The Mexican Ministry of Foreign Affairs must grant a permit to establish a fideicomiso. Your notary can assist with this application.
Drafting the Trust Agreement: Once the permit is approved, the Fideicomiso agreement is drafted, detailing the terms and conditions of the Fideicomiso.
Finalizing the Purchase: With the Fideicomiso in place, you can proceed with the property purchase, just as you would in any other real estate transaction.
Benefits of a Fideicomiso
Security: The trust ensures that the buyer's rights are protected, and the property cannot be sold or transferred without their consent.
Flexibility: Owners can lease, sell, or pass the property on to heirs.
Duration: A fideicomiso is valid for 50 years and can be renewed indefinitely.
Conclusion
While the fideicomiso structure might seem daunting at first, it's a tried-and-true system that has enabled countless foreigners to own their slice of paradise in Mexico.
With the help of Lighthouse guiding you through the process, you will obtain the fideicomiso and secure your dream property.
