Q&A About the Fideicomiso in Mexico

There are two options for foreigners who want to purchase Mexican property within the restricted zone (100 km of any national border and within 50 km from the coast) either through a Mexican corporation or by obtaining a fideicomiso. 

The fideicomiso is a trust held by the bank, which provides the buyer with all the benefits of direct ownership. 

Is the fideicomiso a lease?

No, although the term of the trust is 50-year increments, it can be renewed indefinitely.

Should I choose one of the larger banks to set up my fideicomiso?

No, not necessarily. Since the fideicomiso is not a big part of their business; the fideicomiso may not be a priority. You may be better off to choose a smaller institution where you receive personalized service. Consult your lawyer for trusted recommendations.

Do the rates for establishing the fideicomiso vary between banks?

Yes, you can request a quote for the setup fee and annual fees to compare. 

Will I lose my property if the bank that is holding my fideicomiso goes bankrupt?

No, the fideicomiso is not considered an asset of the bank; if the bank has financial troubles, your fideicomiso will be transferred to another bank. 

Does my yearly fideicomiso include property tax (predial)?

No, property tax is collected by the municipality where your property is located and the fideicomiso fees is collected by the bank – two separate entities. 

Will I receive an invoice by mail or email regarding my annual fideicomiso fee?

No, not likely, it is important to create a reminder; it is due each year on the anniversary date of closing of your property. You will need to obtain your fideicomiso account number from the bank in order to make the payment.

What will happen if I am late or miss an annual payment?

You will not lose your property if you fall behind, but you will incur interest and penalties. If you sell your property, you will need to clear up the overdue balance before the sale can proceed.

How can I pay my annual fee?

The payment can be made at the bank that holds your fideicomiso, or you can obtain instructions from your bank on how to make a wire transfer.

I do not live in Mexico full time; how can I pay my fideicomiso?

Ask your bank about online or wire transfer options or have a property manager, accountant, or lawyer make these payments. Always request proof of payment and keep all receipts.