What is a fideicomiso and how does it work?
A fideicomiso operates just the same as a trust does in the US and the rest of the world. The bank maintains ownership, but the rights and privileges of the property, including its use, will be the trust beneficiary’s (fideicomisario-beneficiario), that is to say the foreigner’s. The trust beneficiary enjoys all of the rights to the property allowing him or her to occupy, rent, or transfer his or her rights to any person that her or she designates when he or she meets the necessary legal requirements. The legal document backing the trust is a public deed that is duly registered in the Public Registry of Properties. It is not a lease and has no similarity to a lease. These trusts (fideicomisos) are good for 50 years and are renewable for one time only within that period. To renew the trust, an additional payment is required that it is not to exceed $1000 USD. The property may be sold at any time.
