Bank trust for foreigners in Mexico: everything you need to know

If you're a foreigner and you want to buy property near the beach in Mexico, you're going to hear the word "fideicomiso" (bank trust) many times. Don't worry — it's simpler than it sounds, and it's your best protection as a buyer.

What is a bank trust? It's a contract under which a Mexican bank (the trustee) holds the deed to the property in your name. You are the beneficiary: you hold all the rights to use, rent, sell, inherit and modify. The bank is only a legal administrator — it can't sell or do anything without your authorization.

Why does it exist? The Mexican Constitution prohibits foreigners from directly owning property in the "restricted zone": 100 km from the border and 50 km from the coast. Since almost all of the Riviera Maya lies within 50 km of the sea, virtually every coastal property requires a bank trust for foreigners.

What does it cost? Opening the trust costs approximately $2,000–$3,000 USD. The bank's annual fee is around $500–$700 USD. It isn't a small cost, but it's deductible and gives you full legal security.

How long does it last? 50 years, renewable for another 50. You can sell the property at any time — the trust is transferred to the new buyer. If you pass away, the property goes to the person you designate as beneficiary, without going through probate.

Are there alternatives? Yes. You can create a Mexican corporation (S.A. de C.V.) and buy the property in the company's name. That makes sense if you're planning a portfolio of several properties. For a single property, the trust is simpler and more affordable.

Summary: the bank trust is safe, proven over decades and used by thousands of foreigners. It isn't an obstacle — it's your key to owning a piece of paradise with the law on your side.

Do you have questions about your specific case? Send me a message. I've guided dozens of foreign buyers through the entire legal process.