OWNERSHIP/FIDEICOMISOS

Loreto falls into the Restricted Zone of Mexico. This zone includes land within 50 kilometers (31 miles) of the coastline and 100 kilometers (62 miles) of Mexican borders.

Foreign land ownership is restricted in these areas, it doesn’t prevent you from buying property. Instead of holding the title directly, non-Mexican buyers can own property in the restricted zone through a fideicomiso—a secure, legal trust set up with a Mexican bank. This system allows you to enjoy full ownership rights and protection, just like a Mexican citizen, while complying with Mexican law.

How the Fideicomiso (Trust) Works

The fideicomiso (pronounced fee-day-koh-MEE-so) is essentially a bank trust designed specifically for foreign buyers purchasing property within the restricted zone. Here’s how it works:

• A Mexican bank holds the property title on your behalf, and you are the beneficiary of the trust. This means you maintain complete control over the property—you can live in it, rent it out, remodel, or sell it at any time.
• The fideicomiso is initially set up for 50 years, but it can be renewed indefinitely, allowing your property to be passed down to future generations without losing ownership.
• Even if the bank managing the fideicomiso were to close or be acquired, your trust is not at risk. The fideicomiso would simply be transferred to another bank, ensuring your investment remains secure.

Why the Fideicomiso is a Smart and Secure Option

A fideicomiso offers the same rights and protections as property ownership in your home country, providing peace of mind while investing in Mexico. On average, the annual trustee fee is around $600 USD, which can vary slightly depending on the bank managing your trust. Setting up a fideicomiso is a routine part of purchasing property in Mexico, and your closing attorney will handle all of the paperwork to ensure everything runs smoothly.

Why Work With a Trusted Real Estate Expert

Navigating the fideicomiso process can be complex, but with the right guidance, it is straightforward. At Homes in Loreto, we specialize in helping foreign buyers understand the local market and secure the property of their dreams with confidence. Working with a knowledgeable real estate expert ensures that every step of your investment journey, from purchasing to ownership, is seamless and secure.

To learn more about purchasing property in Loreto’s restricted zone and the benefits of a fideicomiso, download our Ultimate Loreto Real Estate Guide. It’s packed with expert advice and everything you need to make informed decisions as a foreign buyer in Mexico.