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Foreigners wishing to purchase real estate in some regions of Mexico must apply for a fideicomiso (trust), which acts as a real estate trust in Mexico. In 1971 and 1994, amendments to Article 27 of the Constitution allowed foreigners to purchase and own real estate within Mexico’s “exclusion zones.” 30 miles (50 km) from the coast of Mexico. This includes all properties in Los Cabos (the peninsula is about 50 miles wide). This law recognized ownership through a Mexican bank trust deed, or “Fideicomiso”. How a fideicomiso works are that the Mexican government issues a permit to a Mexican bank of your choice, authorizing the bank to act as trustee of the property and appointed you, the buyer, as the beneficiary of the trust deed. 

Beneficiary rights are very similar to living wills and estate trusts in the United States. The bank as trustee only receives instructions from the trust beneficiary (foreign buyer). The beneficiary has the right to use and enjoy the property, rent it if necessary, build on it,, and even inherit it. All actual use of the property is enjoyed at home. Beneficiaries may also sell their rights and appoint a trustee to transfer ownership to qualified owners. Many people refer to Mexican escrow agreements as leasing, but they are not. Any home or property you purchase will be placed in a trust in which you are named as a beneficiary of trust – you are not the lessee. I have. The initial term of the trust is 50 years. Investors may renew the trust for an additional 50 years at the end of every 50-year period. This process can continue indefinitely, allowing long-term asset management.

Foreigners wishing to purchase real estate in some regions of Mexico must apply for a fideicomiso (trust), which acts as a real estate trust in Mexico. In 1971 and 1994, amendments to Article 27 of the Constitution allowed foreigners to purchase and own real estate within Mexico’s “exclusion zones.” 30 miles (50 km) from the coast of Mexico. This includes all properties in Los Cabos (the peninsula is about 50 miles wide). This law recognized ownership through a Mexican bank trust deed, or “Fideicomiso”.

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