In Mexico, foreign individuals, including American and Canadian citizens are subject to specific regulations regarding property ownership, particularly in restricted zones. Restricted zones are generally within 50 KM of the coast and 100 KM of the borders. Here is how it works:
BANK TRUST(Fideicomiso)
- A fideicomiso is a bank trust that allows foreigners to acquire property in a restricted zone. In this arrangement, a Mexican bank acts as the trustee, holding the property on behalf of the foreign buyer, who is the beneficiary of the trust.
OWNERSHIP STRUCTURE
*Trustee: The Mexican bank holds legal title to the property.
* Beneficiary: The foreign buyer has all the rights to use, sell, transfer the property. The beneficiary has control over the property’s use and can sell it or transfer the trust to another qualified foreigner.
* Duration: The fideicomiso is typically established for 50 years, after which it can be renewed for another 50 years. There is no limit to the number of renewals.