What is a Fideicomiso? (Bank Trust)

The Golden Key to Owning Coastal Property in Mexico

In Mexico, the Constitution prohibits foreigners from owning land directly within the “Restricted Zone”—which includes any land within 50 kilometers (31 miles) of the shoreline or 100 kilometers from the borders. Since Puerto Vallarta and Riviera Nayarit are coastal, the Fideicomiso is the legal instrument that makes ownership possible and secure.

How it Works

A Fideicomiso is a long-term irrevocable bank trust.

1. The Bank (Trustee): Holds the legal title to the property.
2. The Buyer (Beneficiary): Holds all the rights of ownership. You can sell the property, lease it, mortgage it, or pass it on to your heirs.

Key Features and Benefits

• Duration: The trust is granted for 50-year periods and is perpetually renewable. It is not a lease; it is a private property right.
• Legal Protection: The bank acts as a “guardian.” The property is not an asset of the bank; it is held specifically for you.
• Estate Planning: You name primary and substitute beneficiaries directly within the trust deed. This often allows your heirs to avoid a lengthy Mexican probate process in the event of your death.
• Cost: There is an initial setup fee (part of your closing costs) and an annual maintenance fee (typically between $500 – $700 USD).

Common Misconception: “Does the Bank Own My House?”

Technically, the bank holds the title, but you have total control. The bank cannot sell, encumber, or use your property without your written instruction. You have the same rights as a Mexican citizen—you can renovate, live in it, or rent it out for profit.