Quick Answer
The restricted zone is all land within 50 kilometers (31 miles) of any Mexican coastline and within 100 kilometers (62 miles) of any international border. Every property in Los Cabos, Puerto Vallarta, Cancun, and other beach destinations falls within this zone. Foreigners must use a fideicomiso to own residential property here.
Detailed Answer
Mexico's restricted zone (zona restringida) is defined in Article 27 of the Mexican Constitution as all land within 50 kilometers (31 miles) of any coastline and 100 kilometers (62 miles) of any international border. Every property in Los Cabos, Puerto Vallarta, Cancun, Riviera Maya, and other coastal destinations falls within this zone. The restriction does not prohibit foreign ownership — it simply requires foreigners to use a fideicomiso bank trust for residential property.
The fideicomiso system was established in 1971 specifically to enable foreign investment in Mexico's most desirable real estate markets while maintaining constitutional sovereignty. Today, thousands of foreign-held fideicomisos exist across Baja California Sur alone. Outside the restricted zone — for example, in Mexico City, Guadalajara, or San Miguel de Allende — foreigners can hold direct deed title without a trust. For commercial property within the restricted zone, a Mexican corporation (SA de CV) can hold title directly.
Buyers who work with experienced Los Cabos agents understand this structure before they ever make an offer. If you are exploring communities in Los Cabos, every property you consider will require a fideicomiso — and our team sets this up as a seamless part of the closing process. Contact us with any questions.