If you are considering purchasing a vacation home in Punta de Mita, you will likely have questions about how the real estate process in Mexico works. Our “Explained” series is designed to help educate you about how real estate transactions function in Mexico, so that you can select your dream branded residence at Susurros del Corazón with confidence.
A fideicomiso is used in Mexico to allow foreigners to purchase property in what is known as the “restricted zone” – property that is located within 100km of an international border or within 50km of the coastline. It is a trust structure which allows foreigners to hold property rights in a way that complies with Mexican law, which generally prohibits non-Mexicans from directly owning land in these restricted areas.
With a fideicomiso, the buyer establishes a trust with a Mexican bank acting as the trustee. The foreign buyer, referred to as the “fiduciante,” retains full beneficial use of the property. This means they have the right to occupy, rent, sell, or improve the property as they see fit, while the bank holds the title. The fideicomiso term typically lasts for 50 years and can be renewed indefinitely, providing long-term security for foreign property owners.
The process begins when the buyer and the bank agree on the trust terms, including fees, which can range from $500 to $1,000 annually, plus any initial setup costs. Once the fideicomiso is established, the bank will ensure all legal compliance, making the process smoother for the foreign buyer and ensuring their interests are secured.
One of the main benefits of a fideicomiso is the level of protection it provides foreign investors. The trust structure provides peace of mind, as the property cannot be seized or sold without the owner’s consent. Additionally, the fideicomiso allows for estate planning advantages, as the property can be passed on to heirs without going through probate.
A fideicomiso is an essential tool for foreigners buying real estate in Mexico, providing a secure and legal means to own property in coastal areas like Punta de Mita, while facilitating various ownership rights. Your Susurros del Corazón sales executive can explain more about the fideicomiso process to ensure a successful and easy experience.
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