Mexico attracts foreign investors with its culture, scenery, and climate. While foreigners can own property, the Mexican Constitution restricts direct ownership within 50 km of coastlines and 100 km of borders—called the Restricted Zone.

Fideicomiso: Buying in the Restricted Zone

To legally acquire property in these areas, foreigners use a fideicomiso, a trust with a Mexican bank holding the title. The buyer retains full rights: to use, lease, sell, or pass on the property. The trust lasts 50 years and can be renewed.

• Choose property.
• Select a trustee bank.
• Bank requests a permit from the Foreign Affairs Ministry.
• Notary drafts trust agreement.
• All parties sign.
• Register with Public Registry.

Typical Costs:

• Setup: $500–$1,500 USD
• Annual Fee: $500–$1,000 USD
• Permit: ~$1,000 USD
• Notary/Registration: Varies

Alternative: Mexican Corporation

Foreigners can form a Mexican corporation (minimum two shareholders) to directly own property, even in the Restricted Zone—ideal for commercial use or multiple properties.

Due Diligence

• Verify clear title
• Avoid ejido (communal) land
• Hire a real estate lawyer and notary
• Understand taxes (property, capital gains)

Conclusion

Buying property in Mexico is possible and profitable with proper legal guidance. A fideicomiso or corporation ensures lawful ownership.