Foreign citizens who wish to buy property within 50 kilometers / 31 miles of the coastline or 100 km / 62 miles of a border are required to obtain a “Fideicomiso,” which functions similarly to a Living Trust in the USA. The ‘owner/buyer’ of the property is designated as a beneficiary of the trust which actually holds the title through a bank that acts as a trustee and carries out the instructions of the beneficiary. While the mechanics seem foreign the actual function of a trust is very similar to a simple title ownership.
It is important to point out that a Fideicomiso is not a lease, concession or right to use, but allows the Trustee bank to hold title for the beneficiary (buyer/owner) and act as the owner of the property. Although it is mostly used by foreigners, many Mexicans use a trust for estate planning purposes given some of the many benefits.
Each Fideicomiso is valid for 50 years, and when it expires, the trust permit needs to be renewed. This is just an administrative process that can be done directly with the Trustee bank or through Pacific Closing, our in-house Closing Company.
For more information about a Fideicomiso and what it represents, contact us at email@example.com where our Closing Coordinator will help you with all your answers.