The Mexican bank trust is an instrument commonly used for non-Mexican nationals to purchase coastal land in Mexico. This bank trust in Mexico is known as a FIDEICOMISO.
Many people are unaware that Non-Mexicans can own property in Mexico. For many, it is a surprise that Mexican foreigners can actually own property that is right on the beach, YES, Mexican foreigners can own a beachfront home and live full time very comfortably in Mexico.
Mexico 1917 Constitution outlines clearly that no Non-Mexican Citizen is allowed to own Mexico Real Estate within 60 feet from the mean high-tide line, up to 31 miles inland from the ocean, and up to 62 miles from international borders (The Restricted Zone).
As Mexico intelligently realized over the past several decades, foreign investors with their foreign investments were and are very attracted to the beautiful natural coastlines of the Mexican Pacific, the Sea of Cortes, the Mexican Caribbean, Gulf of Mexico There were even many Americans who preferred to live in the less expensive Mexico neighborhoods, but within driving distance of their jobs on the American side. There is not a higher law over the Mexican Constitution….so amendments were established.
The fideicomiso is an agreement set up between the Mexican foreign buyer and a Mexican bank. The bank acts on behalf of the buyer The bank will have title, but has a fiduciary obligation to follow the directions and wishes of the foreign buyer the non-Mexican buyer can enjoy, use, rent out, improve upon the property, expand, build and sell the Mexico Real Estate and reap 100% of the profits:
- Fideicomitente = seller of the property
- Fiduciary = the bank acting as the trustee and holder of the title
- Fideicomisario = beneficiary of the property
Term of 50 years, and it is renewable for another 50 year term.
Second beneficiaries can be established within the trust to establish automatic inheritance of the property in case of deaths of the first beneficiaries.
The buyer, can choose which banks he wishes to establish his Bank Trust There are various multi-national banks in Mexico.
In regards to Non-Mexicans buying property outside of the Restricted Zone Mexico Real Estate Bank Trusts are not needed in these regions and property can be held simple and straight title.
The Fideicomiso is used to acquire property here in Mexico
