How to Own Property In Mexico With A Bank Trust | Fideicomiso

Fideicomiso | Owning Property in Mexico With Bank Trust

by Luis Acosta

🏖️ What Is a Fideicomiso? The Key to Owning Property in Cabo as a Foreigner 🇲🇽

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If you’re dreaming of buying a vacation home, investment property, or your forever beach house in Cabo San Lucas, you’ve probably come across a word that sounds complicated but is actually your best friend in Mexican real estate: fideicomiso.

Let’s break it down. 👇

🇲🇽 Why Do I Need a Fideicomiso?

According to the Mexican Constitution, foreigners can’t directly own land within the "Restricted Zone," which includes:

Land within 50 km (about 31 miles) of the coast
Land within 100 km (about 62 miles) of the borders

That includes most of the dreamy coastal areas like Cabo San Lucas, San José del Cabo, Todos Santos, and the entire East Cape. But don’t panic — this rule doesn’t mean you can’t own property. You just need to own it through a fideicomiso.

🏦 What Exactly Is a Fideicomiso?

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A fideicomiso is a real estate trust agreement that allows foreigners to legally and safely purchase property in restricted areas. Here’s how it works:

You choose the property you love 🏠✨
A Mexican bank (not a person, not the government) acts as the trustee (fiduciario).
You, the foreign buyer, are the beneficiary of the trust.
The trust lasts 50 years, is renewable, and can be inherited, sold, rented, or transferred — just like traditional ownership.

So even though the bank holds the title on paper, you hold all the control.

✅ Benefits of Owning Through a Fideicomiso

🔐 Legal ownership with full rights
👨‍👩‍👧 Transferable to heirs or third parties
🛠️ Freedom to build, remodel, rent, or sell
💼 Protected by Mexican law and monitored by banking institutions
🌎 Peace of mind for international investors

🤔 Is It Complicated to Set One Up?

Not at all — especially with the help of a qualified real estate professional and a notary public. Your agent in Cabo will guide you through choosing a bank, setting up the trust, and handling all paperwork.

There’s an initial setup fee and a yearly trust maintenance fee (usually between $400–$700 USD), but it's a small price for legal peace of mind and beachside living.

🌅 Final Thoughts

The fideicomiso system may seem unfamiliar at first, but it’s a proven, secure, and widely used method for foreigners to own property in Mexico — especially in world-class destinations like Cabo San Lucas.

So go ahead — fall in love with that ocean-view condo, luxury villa, or investment property. With a fideicomiso, your Cabo dream is well within reach. 🏝️💼

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