|
|
The Mexican Trust (Fideicomiso)
|
|
One of the most frequent conversations I have with clients is about the Mexican Trust (Fideicomiso). It is still misunderstood by many and there are many unfounded misconceptions.
Still many misconceptions.
The Mexican trust is not a lease. The trust system was established by the Mexican government to protect non-Mexicans wishing to purchase real estate in the restricted zones where they are prohibited to hold title in their names. The restricted zone is 50 km (31 miles) from the coast and 100 km (62 miles) from any border.
Mexican citizens may own a property in their name and doesn’t matter where it is located. They must provide a Mexican passport or Mexican birth certificate to show proof of citizenship.
Foreigners purchasing in this restricted zone must purchase by establishing a trust with a Mexican bank. The bank is named as the property owner of record, but the foreigner is named as the beneficiary of the trust and has complete control and use of the property. They can rent, remodel or sell the property. It is like owning 100% of the stocks of a corporation. To sell the owner must notify the bank and the trust will either be transferred to the new owners or it will be cancelled.
Trusts are normally established for a period of 50 years but can then be renewed by a simple letter of instruction to the bank. There is a fee to establish the trust which varies from bank to bank and there is also an annual fee.
For more information about the trust (fideicomiso) and costs, please feel free to contact us. We do assist our clients with the entire application process.
 |
|
| Location Map |
 |
| Financing In Mexico |
Finance North America specializes in providing mortgage financing to U.S. citizens purchasing real estate in Mexico.
FinanceNorthAmerica.com
|
|
Cancun
Print
eMail