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Your property title in Mexico

The Fideicomiso

What is a Fideicomiso?

The Fideicomiso (sometimes called a “Fido”) is a 50-year renewable and transferable Bank Trust through which Foreigners acquire ownership rights to coastal and borderline property in Mexico. Essentially like a Trust in the United States or Canada, the Bank holds the legal title to the property but YOU, the beneficiary has all the rights and privileges of ownership.  YOU retain use and control over the property and make all decisions concerning the property which may include use and enjoyment, leasing the property, making improvements, mortgage, sell, inherit, and will the property.

Important things to know about a Fideicomiso:

  • The trust must be managed by a Bank in Mexico.
  • The bank owns the property; however, the beneficiary has all rights over the property and receives the full benefit when selling.
  • The bank cannot encumber or sell the property without the express written consent of the beneficiary.
  • The trust is for a 50-year period and is perpetually renewable and transferable.
  • The beneficiary must pay an annual fee to the bank to maintain the trust.
  • Heirs are assigned in the trust as beneficiaries in the case of death; the heirs can be removed or changed at any time at a fee established by the bank.
  • Property held in trust is not considered an asset of the bank.
  • The Mexican Government can NOT take away your property.
  • A Fideicomiso is not a lease.

If you are considering Seller financing, it is secured in one of two ways in Mexico. Read about it here:  How Seller Financing is secured in Mexico