What is a Fideicomiso? A Guide to Buying Property in Mexico

Understanding the Fideicomiso (Bank Trust). Learn how international buyers safely and legally own property in Mexico’s most desirable coastal areas, including Baja California Sur.

Introduction

A fideicomiso is a bank trust that allows foreign buyers to securely own property in Mexico’s restricted zones, including coastal areas like Cabo San Lucas, Cerritos Beach, and Todos Santos. While the bank holds the title, the buyer retains full ownership rights and control of the property.

This structure has been used for decades and is a well-established, government-approved system designed to make property ownership in Mexico accessible to international buyers.

How a Fideicomiso Works

In a fideicomiso, a Mexican bank holds the title to the property on your behalf, while you, as the beneficiary, retain full control and ownership rights.

You have full rights to:

use the property
sell it
rent it
pass it on to heirs

The trust is typically established for 50 years and can be renewed indefinitely.

Why is a Fideicomiso Required?

Mexico’s constitution restricts direct foreign ownership of land within:

50 km (31 miles) of the coastline
100 km (62 miles) of international borders

To allow foreign investment while maintaining these protections, the fideicomiso system was created.

Is a Fideicomiso Safe?

Yes. The fideicomiso is a secure and widely used structure that has been in place for decades. The bank acts only as a trustee and cannot sell or control the property without your instruction.

Thousands of international buyers successfully purchase property in Baja California Sur using this system every year.

What Does a Fideicomiso Cost?

Typical costs include:

Initial setup fee: approx. $1,000–$2,000 USD
Annual fee: approx. $500–$800 USD

These costs can vary depending on the bank.

When Do You Need a Fideicomiso?

You will need a fideicomiso if:

you are a foreign buyer
the property is located in a coastal area (like Cabo, Cerritos, Todos Santos, La Paz)

Outside restricted zones, foreigners can own property directly.

When Buying Property in Baja California Sur

The fideicomiso is commonly used for properties throughout:

Cabo San Lucas
San José del Cabo
Cabo Corridor
Cerritos Beach
Todos Santos
La Paz
East Cape

If you’re exploring real estate in these areas, understanding the fideicomiso is an important step in the buying process.

Still have questions?

We’re here to help you navigate the Baja real estate market and find the right property for your needs. Contact us today!

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