Quick Answer
A fideicomiso is a Mexican bank trust that enables foreigners to own residential property in Mexico's restricted zone (within 50km of the coast). A Mexican bank holds legal title as trustee, while you — the foreign buyer — are the beneficiary with full control and ownership rights. The trust lasts 50 years and is renewable indefinitely.
Detailed Answer
A fideicomiso is a Mexican bank trust — the legal mechanism that enables foreigners to own residential property in Mexico's restricted coastal zone. Under this structure, a Mexican bank holds legal title as trustee while you, the foreign buyer, are named as the sole beneficiary with full control over the property. You decide everything: when to sell, who to rent to, what to renovate, and who inherits. The bank cannot act without your explicit written instructions. Our team has facilitated hundreds of fideicomiso setups across every Los Cabos community.
The fideicomiso was established by Mexican federal law in 1971 and is regulated by the CNBV (National Banking and Securities Commission) and the Ministry of Foreign Affairs. Each trust has an initial term of 50 years, renewable indefinitely for another 50. Setup costs $2,000-$3,000 USD as a one-time fee, plus $550-$1,000 in annual maintenance. The trust is property-specific — each property in the restricted zone requires its own fideicomiso (though some banks allow multiple properties under one trust).
Understanding the fideicomiso is essential for any foreign buyer in Los Cabos. It is not a limitation — it is a well-tested ownership framework that has protected millions of transactions over five decades. Read our complete buying guide or contact our team for a detailed walkthrough.