FIDEICOMISO or BANK TRUST
There are three types of property ownership in Mexico; 1) fee simple, 2) Mexican Corporation, and 3) via bank trust, fideicomiso (pronounced fee-deh-com-ee-so). As of 1993, within the "Restricted Zone", which is about 50 kilometers, or 31 miles, from the coastline and 100 kilometers from the borders, a Mexican bank executes and holds title to the property on your behalf with a bank trust (fideicomiso). The bank has a fiduciary obligation to the owner. Outside of the restricted zone, property can be acquired using fee simple, as in the United States.
In 1972 the Mexican government formed the fideicomiso for the benefit of foreigner buyers (non-Mexican nationals) through constitutional law, and provides them, under the Mexican Constitution, the same legal rights of land and property ownership as a Mexican would have. Secondly, the N.A.F.T.A. Treaty (1994) between Canada, Mexico and the United States provides security from any of these governments’ arbitrarily seizing land from its rightful owner. The property owner has absolute and irrevocable control of ownership and its benefits such as development, use, construction, leasing, selling, and willing of the property.
Fideicomisos are for a term of 50 years. They may be renewed every 50 years, indefinitely. A permit is required from Mexico's Secretary of Foreign Relations authorizing the trust, and usually takes about 30 days to acquire.
There is an initial fee for setting up the fideicomiso, and an annual renewal fee.
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