HomeUltimate Fideicomiso Guide for Foreign Investors in Mexico

Ultimate Fideicomiso Guide for Foreign Investors in Mexico

what is a fideicomiso?

Are you a foreign investor?

Welcome to the most comprehensive guide on Fideicomiso for foreign investors. Whether you’re a seasoned investor or a first-time buyer, this guide will walk you through the legal intricacies, costs, and benefits of setting up a Fideicomiso in Mexico’s restricted zones. We’ve consulted legal experts to bring you the most accurate and up-to-date information.

What is Fideicomiso?

Fideicomiso is a legal agreement that allows foreign investors to own property in Mexico’s restricted zones. It involves three parties: the Trustor (the foreign investor), the Trustee (a Mexican bank), and the Beneficiary (also the investor or someone they designate). This guide will delve into why a Fideicomiso is necessary, how to set it up, and what you need to know to make an informed decision.

The History of Fideicomiso: Understanding Its Origins

The concept of Bank Trust has its roots in Mexican law and history. Understanding its origins can provide valuable insights into its current structure and regulations. In 1973, the Mexican government recognized the coastline as a significant economic asset, leading to the creation of restricted zones where foreign ownership was initially banned. However, in 1989, the government modified the law to allow foreigners to own property through a Fideicomiso.

The Restricted Zones: What You Need to Know

Restricted zones refer to areas within 31 miles of a Mexican shoreline or 62 miles of a bordering country. Any property within these zones requires a Fideicomiso for foreign ownership. This section will explore the implications, benefits, and limitations of owning property in these zones.

what is a fideicomiso?
Riviera Maya restricted areas

How to Set Up a Bank Trust: A Step-by-Step Guide

  1. Find a Mexican Bank: The first step is to find a Mexican financial institution willing to act as the Trustee.
  2. Draft an Agreement: Once you’ve chosen a bank, you’ll need to draft an agreement outlining the roles and responsibilities of each party.
  3. Pay the Fees: Setting up a Fideicomiso is not free. Be prepared to pay approximately $700 USD, along with annual fees.
  4. Obtain Permission: You’ll need permission from the Mexican Foreign Affairs Ministry, which can take between 5 and 30 days.

Expert Insights on Fideicomiso

We’ve consulted with leading legal experts in Mexican real estate to answer your most pressing questions about Mexican real estate trust. Understanding the legal framework of Fideicomiso is crucial for any foreign investor. It’s not just about owning property; it’s about understanding the legal landscape to protect your investment.

Frequently Asked Questions About Fideicomiso

  • What is the Restricted Zone in Mexico?
    • The restricted zone refers to areas within 31 miles of a Mexican shoreline or 62 miles of a bordering country.
  • How much does it cost to set up a bank trust?
    • The initial setup cost is approximately $1,700 to 1,900 USD, with additional annual fees.
  • Can I own multiple properties under one Fideicomiso?
    • No, each property requires its own separate Fideicomiso.

By following this guide, you’ll be well-equipped to navigate the complexities of setting up a Mexican real estate trust. Whether you’re looking to buy a vacation home or make a long-term investment, understanding the Fideicomiso process is crucial for a successful venture in Mexican real estate.

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