What is a Fideicomiso?

A Fideicomiso is the legal structure that allows foreigners—whether individuals or corporations—to acquire property within Mexico’s restricted zone (50 km from the coast or 100 km from international borders). It is essentially a bank trust, where a Mexican bank holds legal title to the property but the foreign buyer (the trust beneficiary) maintains full ownership rights, including the ability to sell, lease, improve, mortgage, or will the property.

Ownership & Beneficiaries: As the trust holder, you are the beneficiary and retain full rights of use and enjoyment of the property. Importantly, you can designate substitute beneficiaries (beneficiaries in case of death). This means that, upon your passing, your designated heirs automatically inherit your rights under the Fideicomiso.

You may name as many beneficiaries as you wish. You may also assign percentages of ownership however you prefer. The process is contractual, meaning your wishes are clearly recorded within the trust agreement.

Inheritance Without Probate: One of the major advantages of a Fideicomiso is that inheritance does not require a lengthy Mexican probate process. Instead, your heirs simply present proof of death to the bank: If death occurs in Mexico: a Mexican death certificate is sufficient. If death occurs abroad: a foreign death certificate must be notarized and apostilled (or legalized) to be recognized in Mexico. Once this documentation is provided, the bank updates the trust records to reflect the new beneficiaries as owners. Unlike traditional property transfers, the Fideicomiso provides a direct, efficient, and legally recognized succession process without going through Mexican courts.

For most Americans and Canadians, purchasing real estate in Mexico through a fideicomiso (bank trust) is the most common and practical option. Even in inland destinations such as Mexico City and San Miguel de Allende—where a trust is not legally required—many buyers still choose this structure. The reason is simple: a fideicomiso can provide significant estate planning benefits, including the ability to designate beneficiaries and bypass probate, helping families avoid the delays and complexities of the court system.

Eduardo Garibay | Attorney At Law | egaribay@loyaltyconsulting.com.mx | Cabo San Lucas