Foreign ownership explained
What Is a Fideicomiso in Mexico?
A fideicomiso is a Mexican bank trust commonly used for foreign residential ownership within the restricted coastal and border zones. The bank holds legal title while the foreign buyer is named beneficiary and exercises rights defined by the trust and law.
01
What the Beneficiary Can Do
Subject to the trust and applicable rules, the beneficiary can generally occupy, improve, rent, sell or transfer beneficial rights and designate successor beneficiaries. The bank is trustee; it does not use the property as its own asset.
02
Creation and Ongoing Administration
A permit and trust agreement form part of the setup, usually coordinated through the closing process. Buyers should understand setup charges, annual trustee fees, renewal timing and the bank's procedures for future changes or sale.
03
Review the Actual Trust
Do not rely solely on a generic explanation. Independent counsel should review beneficiary rights, substitute beneficiaries, property description, term, fees and consistency with the purchase agreement and intended ownership plan.
Important: This is a general explanation, not legal, tax, trust or estate-planning advice. Have qualified counsel review your proposed structure and documents.
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