Property
Mexico — Property: Can Foreigners Buy?
Mexico's Constitution bars foreigners from holding direct title within the 'restricted zone' — all land within 50km of any coastline and 100km of any international border, covering popular destinations like Cancún, Los Cabos, and border areas. Outside the restricted zone, foreigners can take direct title in their own name, just like Mexican nationals. Inside the restricted zone, the only legal path for residential property is a fideicomiso — a bank trust where a Mexican bank holds legal title as trustee while the foreign buyer, as beneficiary, retains full rights to live in, rent, remodel, sell, or bequeath the property; the bank cannot act without the beneficiary's written authorization. Trusts run for 50 years, renewable indefinitely. Fideicomiso setup costs $2,000-3,000 USD with $500-1,000 USD in annual fees. A Mexican corporation (even 100% foreign-owned) can hold restricted-zone title for commercial use (rental business, hotel, retail), but residential use by the owners still requires a fideicomiso.
Key facts
- Restricted zone: within 50km of coastline or 100km of an international border — no direct foreign title allowed.
- Fideicomiso (bank trust): the only legal path for foreign residential ownership in the restricted zone, running 50 years, renewable indefinitely.
- Fideicomiso costs: $2,000-3,000 USD setup, $500-1,000 USD/year maintenance.
- Outside the restricted zone, foreigners can hold direct title exactly like Mexican citizens.
Costs
- Fideicomiso setup: $2,000-3,000 USD
- Fideicomiso annual maintenance fee: $500-1,000 USD
Timelines
- Fideicomiso trust term: 50 years, renewable indefinitely
Common mistakes
- Assuming a fideicomiso is a lease rather than a trust — the beneficiary holds full ownership rights (sale, rental, inheritance), the bank merely holds legal title.
- Overlooking that residential use within a corporate restricted-zone holding still requires a fideicomiso even if the corporation is 100% foreign-owned.