Buying property in Mexico can be an exciting opportunity, especially in coastal destinations like Puerto Vallarta, Riviera Nayarit, or Los Cabos. However, if you are a U.S. or foreign citizen, you may have heard the word “fideicomiso” and wondered what it means. Understanding this term is essential to making a secure and legal investment in Mexico.
What is a Fideicomiso?
A fideicomiso is a real estate trust agreement created under Mexican law. It allows foreign buyers to legally purchase and hold residential property in what is called the Restricted Zone—land located within 50 km (about 31 miles) of the coast and 100 km (about 62 miles) of international borders.
Instead of holding the title directly in your name, the property is placed in a trust administered by a Mexican bank. The bank acts as the trustee, but you are the beneficiary, which means you enjoy all the rights of ownership. You can:
Use the property for personal or rental purposes
Improve, remodel, or develop it
Sell it at any time
Will it to your heirs
The fideicomiso is typically valid for 50 years and can be renewed indefinitely, making it a long-term and secure option.
Why U.S. Buyers Need It
U.S. citizens (and other foreign nationals) need a fideicomiso if they want to purchase coastal or border property in Mexico. Without it, ownership in these areas would not be legally recognized. The fideicomiso solves this challenge by giving you full legal rights equivalent to fee simple ownership in the U.S.
Key benefits include:
Security: Your investment is protected under Mexican law.
Flexibility: You can rent, sell, or transfer the property without restrictions.
Inheritance: The trust allows you to designate beneficiaries, avoiding probate in Mexico.
Final Thoughts
A fideicomiso may sound complex, but it’s simply the legal tool that opens the door for U.S. buyers to confidently invest in Mexico’s most desirable real estate markets. With the right guidance and financing options, owning your dream home in Mexico is easier than you think.
