What Is a Fideicomiso?
A fideicomiso (fid-ay-ee-co-MEE-so) is a legally structured bank trust under Mexican law that allows foreign nationals to acquire and hold property in Mexico's restricted zones. Article 27 of the Mexican Constitution prohibits foreigners from directly owning land within 50 kilometers of the coastline or 100 kilometers of the border — zones where most of Mexico's desirable beach real estate is located.
Under a fideicomiso, a Mexican bank acts as the legal trustee (fiduciario) and holds title to the property on your behalf. You, the foreign buyer, become the beneficiary (fideicomisario) — the party with all practical ownership rights. This includes the right to use the property, rent it out, improve it, sell it, and pass it on to your heirs.
The fideicomiso structure has been in place since 1973 and is fully regulated by the Mexican Foreign Investment Law and the National Banking and Securities Commission (CNBV). It is not a workaround or loophole — it is the legally prescribed mechanism for foreign property ownership in restricted zones, used by over 100,000 foreign buyers.
Learn more about buying property in Mexico as a foreigner →How the Trust Structure Works
Foreign buyer applies to a Mexican bank for a fideicomiso permit from the Ministry of Foreign Affairs (SRE)
Mexican bank (fiduciario) is authorized as trustee and holds legal title to the property
Bank holds title in trust — segregated from bank assets, protected by law
Buyer holds all beneficial rights: use, rent, sell, improve, and inherit the property
How a Fideicomiso Works
Three parties make up every fideicomiso. Understanding each role clarifies why this structure is both secure and flexible.
Trustee (Fiduciario)
The Mexican Bank
Holds legal title on your behalf. Does not benefit from the property. Executes your instructions. Regulated by CNBV.
Beneficiary (Fideicomisario)
You, the Buyer
Holds all beneficial rights. Use, rent, sell, improve, and bequeath the property. Your name is on the trust document.
Trust Property (Patrimonio)
Your Real Estate
The property held in trust. Segregated from bank assets. Protected under Mexican banking law.
Setting Up Your Fideicomiso: 5 Steps
SRE Permit
Bank applies to Ministry of Foreign Affairs for authorization
Bank Approval
Bank reviews property and confirms trust eligibility
Notario Drafts Deed
Notario público prepares the fideicomiso deed
Signing
You and bank sign before notario. Fees paid at this stage
Registration
Deed recorded in Public Registry. Trust is active
Fideicomiso vs. SRL: Which Is Right for You?
Most foreign buyers in Puerto Escondido use a fideicomiso. Here is when each structure makes sense.
Fideicomiso (Bank Trust)
Best for: Residential buyers, vacation homes, single investment properties
SRL (Mexican Corporation)
Best for: Multiple properties, commercial use, business operations
For the vast majority of foreign buyers purchasing a home or vacation property in Puerto Escondido, a fideicomiso is the right choice. Our legal partners can advise on your specific situation. Get legal advice →
Which Mexican Bank Should You Use?
All authorized Mexican banks offer fideicomiso services, but fees and service quality vary. These four banks are most commonly used by foreign buyers in Oaxaca.
Fees are approximate USD equivalents and may vary based on property value and exchange rates. Ask your real estate agent for current quotes from 2–3 banks before committing.
6 Fideicomiso Myths — Debunked
Misinformation about the fideicomiso is surprisingly common. Here are the facts.
Fideicomiso FAQ
Common questions from buyers considering property in Puerto Escondido and coastal Mexico.
What does fideicomiso mean in English?
Fideicomiso is the Spanish word for "trust." In the context of Mexican real estate, it refers specifically to a bank trust (fideicomiso inmobiliario) that allows foreign nationals to hold beneficial rights to property within Mexico's restricted zones — the 50km coastal and 100km border strips where direct foreign ownership is prohibited by the Mexican Constitution.
Who can be the beneficiary of a fideicomiso?
Any foreign national — regardless of citizenship — can be named as the beneficiary of a fideicomiso. Americans, Canadians, Europeans, and buyers from any other country can all use this structure to purchase property in coastal Mexico. Mexican citizens living in restricted zones may also use a fideicomiso, though they are not legally required to.
Can I have multiple beneficiaries or heirs named?
Yes. A fideicomiso can name multiple co-beneficiaries (such as a married couple or business partners) and also designate successor beneficiaries (herederos). Naming heirs directly in the trust document is one of the most important advantages of the fideicomiso — it allows property to transfer without going through Mexican probate (sucesión), which can be a lengthy and expensive process.
What happens to my fideicomiso if I die?
If you have named successor beneficiaries in the trust document, the property transfers to them automatically upon your death without going through probate. This is a major advantage of the fideicomiso structure. Your successor beneficiaries simply notify the trustee bank and provide proof of death; the bank then updates the trust records. This process is far simpler and faster than the probate required for other asset transfers.
Can I sell a property held in a fideicomiso?
Absolutely. Selling a fideicomiso property is straightforward. As the beneficiary, you have the right to direct the trustee bank to transfer beneficial rights to a new buyer. The buyer can either assume your existing fideicomiso (with the same trustee bank) or set up a new fideicomiso with a bank of their choosing. The sale process is very similar to selling property anywhere — you work with a notario público who handles the legal transfer.
How do I set up a fideicomiso — what are the steps?
The setup process has six main steps: (1) Choose a Mexican bank to act as trustee and request a permit from the Ministry of Foreign Affairs (SRE). (2) The bank obtains the SRE permit (usually takes 2–4 weeks). (3) A notario público drafts the fideicomiso deed based on the purchase agreement. (4) You and the bank sign the trust deed before the notario. (5) The notario registers the trust with the Public Registry of Property. (6) You receive your certified copy of the registered fideicomiso. Total timeline is typically 4–8 weeks from accepted offer to completed trust registration.
Is a fideicomiso the same as an SRL (Mexican corporation)?
No, they are two different legal structures. A fideicomiso is a bank trust designed for individual property owners and residential buyers — it is simpler, more transparent, and most appropriate for vacation homes or single investment properties. An SRL (Sociedad de Responsabilidad Limitada) is a Mexican limited liability company used primarily for commercial real estate investments, multiple properties, or when the buyer intends to operate a business from the property. SRLs have higher accounting and tax filing requirements. For most foreign buyers purchasing a home or vacation property in Puerto Escondido, a fideicomiso is the recommended structure.
Do Mexican citizens need a fideicomiso?
No. Mexican citizens can own property anywhere in Mexico under direct title (escritura pública) without a fideicomiso, even in the restricted coastal zones. The fideicomiso requirement applies only to foreign nationals. However, some Mexican citizens who are also foreign residents choose to use a fideicomiso for its estate planning benefits, particularly the ability to name successor beneficiaries and avoid probate.
