What is a FIDEICOMISO?
Pronounced “fee-day-co-miso.” This is a legal structure which allows non-Mexicans to purchase real estate property located in the “Restricted Zone”. This zone encompasses the areas along the coasts and borders of Mexico. Essentially, it is a recorded contractual arrangement where a property is held in “Trust” by a bank for a specific purchaser, or beneficiary. In all material respects it is similar to the type of Trusts commonly used in the United States and Canada to hold property for estate planning purposes. In order to establish a Trust a permit is required from the Secretary of Foreign Relations. Such a permit is usually issued for a term of fifty years and can be renewed for an additional term of fifty years. Contrary to the commonly held misconception, a Mexican Bank Trust (FIDEICOMISO) is not a lease. It is a form of ownership in which real property is transferred into a Trust for the sole purpose of the Beneficiary. It is not necessarily better or worse than fee simple ownersh
