Foreigners purchasing real estate within 50 kilometers (31 miles) of the coastline or 100 kilometers (62 miles) of the border must use an instrument called a Fideicomiso ( Bank Trust). The Fideicomiso is executed by a Mexican bank (regulated by the Federal government) who holds the title in trust, you are the beneficiary. As beneficiaries of the trust you basically have the same bundle of rights as fee simple: the right to sell, encumber by mortgage, lease, will to your heirs (no probate) and pay property taxes (approx. $ 300.00- $ 400.00 annually for a $ 200,000.00 property). The current Fideicomiso is for a 50 year period, which is renewable and assumable. Prior to 1993, the Fideicomisos were a 30 year assumable/ renewable trust. If you purchase
a property with an existing Fideicomiso, you may decide to create a new 50 year trust. A new Fideicomiso will cost approximately $1,800.00 to set up. Approximately $ 700.00 the first year and around $ 400.00 per year to maintain.
There are currently over 100,000 foreigners in Mexico that are property owners via a Fideicomiso.
If you intend to own more than one property or engage in a commercial enterprise, you may want to consider a Mexican corporation. A Mexican corporation is not required to execute a Fideicomiso and may own real estate fee simple.
