Article 27 of the Mexican Constitution bars foreigners from holding direct title to land within the “restricted zone”\u2014a band covering 50 kilometers from any coastline and 100 kilometers from any international border. Most of Canc\u00fan, the Riviera Maya, Los Cabos, Puerto Vallarta, and the entire Baja peninsula fall inside it.<\/p>\n\n\n\n
The fideicomiso is the legal mechanism that solves this. Not a workaround. Not a loophole. A formal trust structure authorized by federal law and administered by a Mexican bank that has been the standard instrument for foreign property ownership in restricted zones since 1973.<\/p>\n\n\n\n
A fideicomiso is a real estate trust governed by Articles 381 through 407 of the General Law of Credit Titles and Operations (Ley General de T\u00edtulos y Operaciones de Cr\u00e9dito\u2014LGTOC). Three parties are involved:<\/p>\n\n\n\n
The trust is registered with the Public Registry of Property and recorded in the name of the trustee bank, with you identified as the beneficiary. This is the document that matters legally. The registration is public.<\/p>\n\n\n\n
Before a fideicomiso can be executed, the Ministry of Foreign Affairs (Secretar\u00eda de Relaciones Exteriores\u2014SRE) must issue a permit authorizing a foreign individual or company to acquire residential or investment rights in the restricted zone through a trust. This is a formal application, not a rubber stamp. Approval typically takes two to four weeks.<\/p>\n\n\n\n
For 2026, the SRE publishes a federal fee of MXN 21,650 for authorization to constitute a fideicomiso in the restricted zone. The official fee is denominated in pesos and may change; any USD equivalent should be calculated using the payment-date exchange rate. Your notario or attorney submits the application with the property details and your identification documents.<\/p>\n\n\n\n
The buyer and seller execute a promissory agreement (contrato de promesa de compraventa) setting out price, conditions, and closing timeline. At this stage, no title transfers.<\/p>\n\n\n\n
The buyer or their attorney selects a Mexican bank to act as trustee. Major institutions such as BBVA, Santander, Banorte, and HSBC operate trust departments (departamentos fiduciarios) that serve this function. Each bank has its own fee schedule.<\/p>\n\n\n\n
Your attorney submits the permit application to the SRE. Once issued, the permit is valid for 90 days and is specific to the property identified in the application.<\/p>\n\n\n\n
A Mexican notary public\u2014a government-appointed civil law notary with authority to certify legal instruments\u2014drafts the fideicomiso deed incorporating the SRE permit, the property description, the names of all parties, and the terms of the trust. The notario also verifies title, calculates transfer taxes (ISAI, approximately 2-4% of the property value depending on the state), and coordinates closing.<\/p>\n\n\n\n
The deed is signed by all parties before the notario, consideration is paid, and the notario submits the deed for registration in the Public Registry of Property. The fideicomiso is legally effective upon registration.<\/p>\n\n\n\n
The total cost of a fideicomiso involves three separate categories of expense:<\/p>\n\n\n\n
SRE permit: MXN 21,650 under the official 2026 fee schedule; confirm the amount in force before payment.<\/strong><\/p>\n\n\n\n Trustee setup fee: varies by institution and transaction. Sch\u00f6ndube recommends obtaining a written quote from the proposed trustee before selecting the bank. Depending on the<\/strong> bank, it’s paid once at closing.<\/p>\n\n\n\n Annual trustee maintenance fee:<\/strong> USD 600 to USD 1,200 per year, billed by the bank as long as the trust remains active.<\/p>\n\n\n\n These figures are for the trust structure itself. They do not include the notario’s professional fees (typically 0.5-1.5% of the property value), the ISAI transfer tax (2-4% depending on state), or any appraisal requirements. A complete closing cost estimate for a coastal property purchase should account for all of these elements together.<\/p>\n\n\n\n The fideicomiso has an initial term of 50 years. It is renewable for successive 50-year terms. There is no limit on renewals. The trust does not expire while the property remains in the trust and renewal fees are paid.<\/p>\n\n\n\n The fideicomiso is not a rental arrangement. As the beneficiary of a fideicomiso, you hold full beneficial ownership of the property. Practically, this means:<\/p>\n\n\n\n The trustee bank executes instructions in accordance with the trust deed. It cannot sell, encumber, or otherwise dispose of the property without your authorization.<\/p>\n\n\n\n A Mexican corporation<\/a> (typically an S.A. de C.V. or S. de R.L. de C.V.) is an alternative structure for foreign property ownership in the restricted zone when the purchase is for commercial development or investment purposes rather than personal residential use.<\/p>\n\n\n\n The key distinction under Mexican law is stated in Article 11 of the Foreign Investment Law (Ley de Inversi\u00f3n Extranjera\u2014LIE): foreign companies may acquire property in the restricted zone for non-residential purposes without a fideicomiso, subject to RNIE registration and CNIE notification requirements.<\/p>\n\n\n\n The practical guidance is<\/p>\n\n\n\n The corporation route involves setup and ongoing maintenance costs for the entity, annual tax filings, accounting requirements, and specific restrictions on the residential use of properties held in a corporate structure. For an individual buyer purchasing a single residential property, the fideicomiso is almost always simpler and less expensive over a 10-year horizon.<\/p>\n\n\n\n The notario’s role in a Mexican closing is distinct from what a real estate lawyer does in a US or Canadian transaction. The notario is a neutral public official who certifies the transaction and calculates taxes. The notario does not represent either the buyer or the seller.<\/p>\n\n\n\n Independent legal representation is separate. An attorney reviewing the title search, evaluating the purchase agreement, advising on the structure (fideicomiso vs. corporation), and coordinating with the notario on your behalf is doing something different\u2014and that representation is in yourdifferent\u2014andthe transaction’s.<\/p>\n\n\n\n At Sch\u00f6ndube \u00b7 Fern\u00e1ndez \u00b7 L\u00f3pez Madrigal<\/a>, we advise foreign buyers on the acquisition process from initial due diligence through closing<\/a>, including fideicomiso structuring, title analysis, and CNIE compliance for commercial acquisitions. Our practice is based in Canc\u00fan, with direct experience in the Riviera Maya, Tulum, and Quintana Roo coastal markets.<\/p>\n\n\n\nWhat rights you have as a beneficiary?<\/strong><\/h2>\n\n\n\n
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Fideicomiso vs. Mexican corporation for property ownership<\/strong><\/h2>\n\n\n\n
Situation<\/strong><\/th> Preferred structure<\/strong><\/th><\/tr><\/thead> Vacation home, personal residence<\/td> Fideicomiso<\/td><\/tr> Single condo or residential unit for rental income<\/td> Fideicomiso<\/td><\/tr> Hotel, resort, or commercial development<\/td> Mexican corporation<\/td><\/tr> Mixed-use project with partners<\/td> Mexican corporation<\/td><\/tr> Multiple properties under one holding structure<\/td> Mexican corporation<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n Working with a real estate attorney on your fideicomiso<\/strong><\/h2>\n\n\n\n
Frequently asked questions<\/strong><\/h2>\n\n\n\n