Guides & insights / Legal / Fideicomiso Basics
Owning near the sea: the fideicomiso
October 26, 2026
Mexico welcomes foreign property owners, and buying near the Caribbean is common and well established. One rule shapes how it is done. Article 27 of the Mexican Constitution defines a restricted zone: land within 100 kilometres of the national borders and within 50 kilometres of the coast. Inside this zone, which includes the entire Riviera Maya, a foreign individual cannot hold direct title to residential property.
Updated 2026-10-26 · 3 min read · 576 words · Private draft awaiting owner review.
Why foreigners use a bank trust
Mexico welcomes foreign property owners, and buying near the Caribbean is common and well established. One rule shapes how it is done. Article 27 of the Mexican Constitution defines a restricted zone: land within 100 kilometres of the national borders and within 50 kilometres of the coast. Inside this zone, which includes the entire Riviera Maya, a foreign individual cannot hold direct title to residential property.
The solution, used for decades and regulated by the Foreign Investment Law, is the fideicomiso: a bank trust. A Mexican bank acts as trustee and holds the legal title on your behalf. You are the beneficiary, with full rights to use and enjoy the property.
What the beneficiary can do
As beneficiary you can live in the property, rent it out, renovate it within the building's rules, sell it, or mortgage your trust rights where a lender allows. You also name substitute beneficiaries, the people who will inherit your rights, which can simplify succession compared with a will alone. The bank cannot use, sell or encumber the property without your instruction, and the property is not an asset of the bank.
The trust is granted for an initial term of 50 years and can be renewed. When you sell, you can either transfer your beneficiary rights to the buyer within the existing trust or the trust is terminated and the property passes to the new owner's chosen structure.
How a fideicomiso is set up
The process runs alongside the purchase. Once you have agreed on a property, you choose a Mexican bank to act as trustee; banks differ on fees and service, and your notary or lawyer can recommend several. The notary applies to the Ministry of Foreign Affairs (SRE) for the permit to establish the trust. The bank reviews the property and your identification, then signs the trust deed before the notary at closing, at the same time as the purchase. The deed is then registered with the Public Registry of Property.
Typical costs
Costs vary by bank and by the value of the property, so treat these as orientation rather than quotes. The SRE permit fee has been cited at around MXN 21,650. Banks typically charge a one-time set-up fee, commonly in the range of USD 500 to 2,500, and an annual trustee fee, often around USD 450 to 1,200. These are in addition to the general closing costs of the purchase, such as acquisition tax and notary fees, explained in our buying guide.
Ask the bank and the notary for a written, all-in estimate before you sign, and compare at least two banks.
The alternative: a Mexican company
Foreigners can also hold property in the restricted zone through a Mexican corporation, but only when the property is used for commercial purposes. A company brings accounting, tax filing and compliance obligations every year. For a home you will live in or use part of the year, the fideicomiso is almost always the simpler and more appropriate route. Your lawyer can advise if your plans are different.
How we help
We introduce you to independent notaries and banks experienced with foreign buyers and make sure the trust is planned from the start, so closing is not delayed. Because every situation is different, we always recommend that buyers have their own legal advice. The figures in this guide are Estimated and were gathered from published sources; confirm them with your notary, bank or lawyer.
Updated 27 October 2026. Figures are Estimated and should be confirmed with a notary, bank or tax advisor.
Sources
Questions & answers
Owning near the sea: the fideicomiso
Mexico welcomes foreign property owners, and buying near the Caribbean is common and well established. One rule shapes how it is done. Article 27 of the Mexican Constitution defines a restricted zone: land within 100 kilometres of the national borders and within 50 kilometres of the coast. Inside this zone, which includes the entire Riviera Maya, a foreign individual cannot hold direct title to residential property.