Buying Property in Mexico as a Foreigner: Fideicomiso Trust Explained

One of the most common questions we hear from potential buyers is: "Can a foreigner own property in Mexico?" The answer is yes — but with an important caveat for properties near the coast or national borders.

Mexico's Constitution prohibits foreigners from directly owning property within the "Restricted Zone" — a strip of land within 50 kilometers of the coastline and 100 kilometers of international borders. Since virtually all of Puerto Vallarta's most desirable properties fall within this zone, foreigners must use an alternative legal structure: the fideicomiso bank trust.

What Is a Fideicomiso?

A fideicomiso (fee-day-ee-co-MEE-so) is a Mexican bank trust in which:

• A Mexican bank (the trustee/fiduciario) holds legal title to the property
• You, the foreign buyer, are the beneficiary with all rights of ownership
• You can use, rent, sell, renovate, and bequeath the property exactly as if you owned it outright

Think of it as equivalent to owning property through a trust in the United States — you have complete control and enjoyment of the property, the bank simply holds title on your behalf.

Key Features of a Fideicomiso

• Duration: 50 years, renewable indefinitely
• Transferable: Can be sold, gifted, or inherited
• Multiple beneficiaries: You can add co-owners or heirs
• Annual fee: Banks charge $500-700 USD per year as trustee
• Full ownership rights: Rent, renovate, use as collateral

Fideicomiso vs. Mexican Corporation

Some buyers purchase property through a Mexican corporation (SA de CV or SAPI de CV). Each structure has pros and cons:

The Fideicomiso Setup Process

1. Bank selection: Choose a Mexican bank (BBVA, Santander, HSBC, Banamex)
2. Trust permit: Apply for a Foreign Affairs Ministry permit (usually 30-60 days)
3. Trust deed: Execute the fideicomiso deed before a Notario Público
4. Registration: Register the trust with the Public Registry

Our closing services team handles the entire fideicomiso setup as part of your real estate transaction, coordinating with the bank, notary, and government agencies.

Can I Get a Mexican Mortgage?

Yes — several Mexican banks offer mortgages to foreigners purchasing through fideicomiso, though terms are typically different from home country mortgages. Some US and Canadian lenders also offer cross-border financing. Our team can advise you on current financing options.

If you're also considering forming a Mexican corporation for your property investment, learn about our corporation formation services.

Ready to buy your dream property in Puerto Vallarta? Contact PV Law Firm for expert guidance on the complete purchase process.