Buying Property in Mexico? Understand the Fideicomiso First

Are you dreaming of owning a beachfront property in paradise… but you’re not Mexican? Don’t worry—there’s a legal and secure way to make that dream a reality. It’s called the Fideicomiso, or the Mexican Real Estate Bank Trust—and today, I’m going to explain exactly how it works, why it exists, and how YOU can own your piece of the Riviera Maya!

🧭 “In this blog, we’ll cover:

• What the Fideicomiso is

• Why it’s required for foreigners

• How it’s set up step by step

• Costs and maintenance

• Common myths and risks

• And the benefits for you as a buyer!”

📍“I’m Alberto, your licensed real estate advisor here in Playa del Carmen, and I’ve helped dozens of foreigners just like you safely invest in property here in Mexico. Let’s dive in.”

Let’s start with the basics. A Fideicomiso is a legal instrument—a real estate bank trust—that allows non-Mexican citizens to acquire rights to real estate in what’s called the restricted zone.

That means if you want to buy beachfront property in places like Tulum, Playa del Carmen, Cancun, Puerto Vallarta, Los Cabos, or Mazatlán, you’ll need to use a Fideicomiso.”

“Through the Fideicomiso, a Mexican bank holds the title to the property, but you are the beneficiary of the trust. You have the right to use, rent, remodel, sell, or inherit the property—just like a Mexican citizen.

This all goes back to Article 27 of the Mexican Constitution, which prohibits foreigners from directly owning land in the restricted zones to protect national sovereignty.”

“But in 1973, the Mexican government created the Fideicomiso system to promote foreign investment while maintaining legal control through Mexican institutions. It’s a win-win.

“It’s important to understand: This isn’t a loophole or workaround. It’s 100% legal, recognized, and regulated by Mexican law.

Here’s how it works step by step:

1. Find your dream property in a restricted zone with a qualified agent.

2. Choose a bank to hold the Fideicomiso (popular options: ScotiaBank, Banorte, BBVA, Santander).

3. The bank becomes the trustee, and you become the beneficiary.

4. The trust is created for 50 years, renewable indefinitely in 50-year increments.

5. A Mexican Notary Public oversees and formalizes the transaction.

6. Once signed, the property is legally secured in your name under the Fideicomiso.

“The whole process typically takes between 30 to 60 days, and your real estate advisor and attorney will walk you through everything.”

“Let’s talk money. There are two main costs associated with a Fideicomiso:”

1. Setup Fee: Around $2,500 USD (one-time fee)

2. Annual Fee: Typically between $500 and $700 USD/year, depending on the bank

📌 “You’ll also need to cover closing costs, which range from 5% to 7% of the property value, including taxes, notary fees, registration, etc.”

“Remember, you’re not just buying property—you’re buying peace of mind with full legal protection.”

Let’s bust some myths!

❌ Myth #1: “I don’t really own the property.” ✅ Truth: You DO own the rights, and you can sell, lease, or will the property to your heirs.

❌ Myth #2: “The bank can take my property.” ✅ Truth: No. The bank has a fiduciary responsibility—it cannot sell, transfer, or use the property without your instruction.

❌ Myth #3: “It’s risky or temporary.” ✅ Truth: Fideicomisos have been used for over 50 years and are renewed every 50 years. They’re very stable.

“So what’s in it for you?”

🔑 Full rights to use, lease, remodel, or sell 🔑 Legal protection under Mexican law 🔑 Inheritance flexibility – You can designate secondary beneficiaries 🔑 Access to appreciation in booming markets like Riviera Maya 🔑 Peace of mind knowing you’re investing legally

“Now, there is another option—setting up a Mexican corporation. But that’s usually for commercial investments or when buying multiple properties. It comes with more paperwork and tax obligations.”

🎯 “For most people buying a vacation home or rental property, the Fideicomiso is the best route.”

“There you have it—now you know exactly how you can legally and safely own property in Mexico through a Fideicomiso.”

🙏 “If you found this blog helpful, give it a like, subscribe to the channel, and share it with anyone dreaming of a home in paradise.

📞 “If you’re ready to start your real estate journey in the Riviera Maya, reach out to me directly. I offer personalized advice, vetted property listings, and trusted legal connections to make your purchase smooth and secure.”

You’ve probably got a vision for your dream home in Mexico—so let’s talk about it. What’s your must-have?

🏡 A rooftop terrace with ocean views?🌴 A private jungle escape?💦 Or maybe a pool where you can sip your morning coffee?

I’d love to hear what’s on your mind. Hit reply and let me know, or let’s set up a time to chat. Click here to start the fun!

“I’m Alberto, your real estate guide here in Mexico. Until next time—see you at the beach!”