Fideicomiso (Mexican Bank Trust)

In 1973 there was a constitutional amendment called Foreign Investment Law which allowed foreigners to purchase land in the borders and coasts by way of a Trust through a Mexican Bank (Fideicomiso). This trust assures the buyer all the rights and privileges of ownership and can be sold, inherited, leased, or transferred at any time.

Since 1994 the Foreign Investment Law stipulates that the Fideicomiso must be to a 50-year term with a 50-year renewal anytime with a petition. If you have purchased a property with a Bank Trust you can stay with the remaining time of that trust or you can apply to the Ministry of Foreign Affairs for a new 50 + 50-year period, your realtor should provide you with all the information you need.

If you ever decide to sell your home and the buyer is another foreigner the bank will need to be notified that there will be a name change in the Bank Trust, the buyer must apply to the Ministry of Foreign Affairs and follow the same steps you made in order for them to have the Bank Trust on their name.

When a Mexican buys your Bank Trust Property he/she has the option to remain within the Trust or opt out of the trust and request the title in “Escritura”.

Reason Why the Bank Trust was Created

Mexico’s early history shows foreign invasions and the loss of a vast amount of land, in response to the fear of history repeating the Mexican authorities established in the Constitution the “Restricted Zone”. In 1973 in order to bring in more foreign investment from tourism, the Bank Trust of Fideicomiso was created, thus allowing non-Mexicans to own land without having to modify the constitution. Since the law went into effect it has undergone many modifications in order to make purchasing land in Mexico a safer investment.