Buying on the coast as a foreigner: how the bank trust works
Within the restricted zone, the bank trust is the safe, legal way for a foreigner to own. Here is what it actually involves.
The Mexican Constitution restricts direct foreign ownership within 50 km of the coast and 100 km of the borders. In Cancún and the Riviera Maya this applies to virtually all beach inventory.
The standard solution is the bank trust (fideicomiso): an authorized Mexican bank holds title in trust for you. You keep all rights to use, rent, sell and bequeath the property. It is not a lease: you are the beneficiary with full control of the asset.
The trust is established for 50 years and is renewable indefinitely. It has a setup cost and an annual administration fee, which you should budget within closing costs.
For larger tickets or multiple properties, a Mexican corporation sometimes fits better than a trust. The choice depends on use and your tax situation; review it case by case with an advisor and a notary.
Informational content only; it is not financial, tax or legal advice. Confirm every detail with an Arano Investments Group advisor before deciding.
