Owning Property in Mexico

Your complete guide to secure property ownership through fideicomiso

Important Disclaimer: This information is for educational purposes only and does not constitute legal advice. Property laws and regulations may change. Always consult with a qualified Mexican real estate attorney and notario before making any property purchase decisions.

Understanding Fideicomiso

A fideicomiso (bank trust) is the legal mechanism that allows foreigners to own property in Mexico's restricted zones, including coastal areas within 50 kilometers of the ocean. This is the same legal structure used by thousands of foreign property owners throughout Mexico.

The fideicomiso system was established in 1973 and has been successfully used for over 50 years. It provides the same rights and protections as direct ownership, including the ability to sell, rent, or bequeath the property to heirs.

Key Benefits:

  • Full Property Rights: You can use, sell, rent, or bequeath the property
  • Legal Protection: Same legal protections as Mexican citizens
  • Renewable: Trust can be renewed for additional 50-year periods
  • Inheritable: Property can be passed to heirs
  • Transferable: Can be sold to other foreigners or Mexican citizens
Legal documents and property ownership

The Purchase Process

Step-by-step guide to acquiring your property

1️⃣

Choose Your Lot

Select from available lots based on your preferences for size, location, view, and budget. Our team can help you find the perfect lot for your needs.

2️⃣

Offer & Reservation

Submit your offer and sign a reservation agreement. A deposit (typically 10-20% of the purchase price) secures your lot while due diligence is completed.

3️⃣

Bank Trust Setup

Work with a Mexican bank to establish your fideicomiso. The bank acts as trustee, holding legal title while you retain all beneficial rights to the property.

4️⃣

Due Diligence & Permits

Complete property inspections, verify title, and ensure all necessary permits are in place. This typically takes 30-60 days.

5️⃣

Closing at Notary

Finalize the purchase at a Mexican notario (notary public). All documents are signed, funds are transferred, and the property is officially transferred to your trust.

6️⃣

Title Delivery

Receive your official property title and trust documents. You are now the legal owner of your Mexican property through the fideicomiso structure.

Fees & Costs

Understanding the financial aspects of property ownership

One-Time Costs

  • Bank Trust Setup: $500 - $1,500 USD
  • Notary Fees: 1-2% of property value
  • Title Transfer Tax: 2-4% of property value
  • Legal Fees: $1,000 - $3,000 USD
  • Appraisal: $300 - $500 USD
  • Title Insurance: 0.5-1% of property value (optional but recommended)

Total One-Time Costs: Typically 4-8% of the property value

Ongoing Costs

  • Bank Trust Annual Fee: $300 - $800 USD per year
  • Property Taxes: 0.1-0.3% of assessed value annually
  • Homeowners Association: Varies by development
  • Utilities: When connected (electricity, water, internet)
  • Maintenance: Property upkeep and security

Annual Ongoing Costs: Typically $500 - $2,000 USD per year

Trust Renewal & Long-term Planning

Fideicomiso trusts are initially established for 50 years, but they can be renewed for additional 50-year periods. This means your property ownership can continue indefinitely.

Renewal Process:

  • Timeline: Begin renewal process 2-3 years before expiration
  • Cost: Similar to initial setup costs
  • Requirements: Current property taxes paid, no liens or encumbrances
  • Duration: Process typically takes 3-6 months

Inheritance Planning:

Your fideicomiso property can be passed to heirs through your will. Heirs can either:

  • Continue the trust in their name
  • Transfer to a new trust
  • Sell the property
Family planning and inheritance

Frequently Asked Questions

Common questions about property ownership in Mexico

Is fideicomiso ownership as secure as direct ownership?

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Yes, fideicomiso ownership provides the same legal protections as direct ownership. You have full rights to use, sell, rent, or bequeath the property. The trust structure is recognized and protected under Mexican law, and thousands of foreign property owners have used this system successfully for over 50 years.

What happens if the bank goes out of business?

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If the trustee bank fails, the trust is transferred to another qualified bank. Your property rights remain intact, and you can choose a new trustee bank. The Mexican banking system has strong regulatory oversight, and major banks rarely fail.

Can I get a mortgage on a fideicomiso property?

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Yes, many Mexican banks offer mortgages to foreigners for fideicomiso properties. Interest rates and terms are competitive with international standards. You can also use your foreign income and assets to qualify for financing.

Do I need to be present in Mexico for the closing?

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Yes, you must be physically present in Mexico for the closing at the notario. However, you can complete most of the process remotely, including due diligence, document preparation, and trust setup. The actual closing typically takes 2-4 hours.

What documents do I need to purchase property?

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You'll need a valid passport, proof of income or financial capacity, and sometimes a Mexican tax ID (RFC). The notario will guide you through all required documentation. Some documents may need to be apostilled or translated.

Can I rent out my property?

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Yes, you have full rights to rent your property. You may need to register for tax purposes if you plan to rent commercially. Many owners successfully rent their properties to tourists or long-term tenants.

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