A fideicomiso is a legal arrangement in Mexico that allows foreigners to own property in the country’s restricted zones, typically within 50 kilometers of the coast or 100 kilometers of the borders.
The fideicomiso is a trust agreement between the foreign buyer and a Mexican bank, where the bank holds the legal title to the property on behalf of the buyer.
How does a Fideicomiso work?
When a foreigner wants to purchase property in a restricted zone in Mexico, they are required to establish a fideicomiso. The process involves the following steps:
- The buyer selects a Mexican bank authorized to act as a trustee.
- The buyer and the bank sign a fideicomiso agreement, which outlines the terms and conditions of the trust.
- The bank applied for a permit from the Mexican Ministry of Foreign Affairs to establish the trust.
- Once the license is granted, the bank holds the legal title to the property on behalf of the buyer.
- The buyer becomes the beneficiary of the trust and has all the rights and responsibilities of ownership.
The fideicomiso lasts 50 years and can be renewed for 50 years. During this time, the buyer has the right to use, sell, rent, or pass on the property to heirs.
Benefits of a Fideicomiso
There are several benefits to using a fideicomiso to own property in Mexico:
- Legal Protection: The fideicomiso protects the buyer, ensuring their property rights are upheld.
- Ownership Rights: The buyer has all the rights and responsibilities of ownership, including the ability to use, sell, rent, or pass on the property to heirs.
- Investment Opportunity: Owning property in Mexico can be lucrative as the country’s real estate market grows.
- Access to Restricted Zones: The fideicomiso allows foreigners to own property in the restricted zones of Mexico, which are often desirable locations near the coast.
FAQs
Can I own property in Mexico as a foreigner?
As a foreigner, you can own property in Mexico through a fideicomiso.
How long does a fideicomiso last?
A fideicomiso lasts 50 years and can be renewed for 50 years.
Can I sell my property if it is held in a fideicomiso?
Yes, you can sell your property anytime while it is held in a fideicomiso.
What happens if I pass away while my property is held in a fideicomiso?
If you pass away, your property in a fideicomiso can be passed on to your heirs according to your wishes.
Can I rent out my property if it is held in a fideicomiso?
Yes, you have the right to rent your property while it is held in a fideicomiso.
Summary
A fideicomiso is a legal arrangement in Mexico that allows foreigners to own property in the restricted zones of the country.
It is a trust agreement between the foreign buyer and a Mexican bank, where the bank holds the legal title to the property on behalf of the buyer.
The fideicomiso provides legal protection to the buyer and allows them to have all the rights and responsibilities of ownership. It is a valuable tool for foreigners investing in Mexican real estate.
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