Why foreigners need a trust on the coast
Article 27 of the Mexican Constitution says that foreigners cannot take direct ownership of land within 100 kilometers of the borders or 50 kilometers of the coast. This strip is called the restricted zone, and every beach town in Quintana Roo is inside it: Cancún, Playa del Carmen, Tulum, Puerto Morelos, Puerto Aventuras, Akumal, Bacalar and the rest.
That does not stop you from owning. The Foreign Investment Law (Ley de Inversión Extranjera) lets a Mexican bank hold the title for you in a trust, called a fideicomiso, with you as the beneficiary. It is the standard way foreigners buy homes on the coast, and it has been in use for decades.
How the fideicomiso works
The bank is the trustee
A Mexican bank you choose holds the title on your behalf. It does not own the property and cannot sell, rent or mortgage it without your instruction.
You are the beneficiary
You have the full right to use, remodel, rent and sell the property, and to receive the money when you sell.
It lasts up to 50 years
The law sets a maximum term of 50 years, and the trust can be renewed. You can also end it if you sell to a Mexican buyer.
You name who inherits
You name substitute beneficiaries in the trust, so the property passes to them without going through a Mexican probate process for that asset.
The steps, in order
- Offer and promissory contract. Once the price is agreed, a purchase agreement sets the terms and the deposit.
- Choose the bank. We compare setup and annual fees between banks and send them your documents.
- Permit from the Ministry of Foreign Affairs. The bank requests the permit from the Secretaría de Relaciones Exteriores (SRE) to create the trust in the restricted zone.
- Due diligence. The notary checks the title, debts, property tax and the condo or HOA status.
- Signing before a notary. You sign in person or with a power of attorney. The deed creates the trust and transfers the property into it.
- Registration. The deed is registered in the Public Property Registry, which is what protects your ownership against third parties.
What it costs
The bank charges a one-time fee to set up the trust and an annual fee to maintain it, and the SRE charges a fee for the permit. These amounts change by bank and by year, so we ask for a current written quote before you choose. Together with the notary, the acquisition tax and registration, plan on closing costs of 7 to 10% of the purchase price.
Trust or Mexican company?
A Mexican company with foreign shareholders can own property in the restricted zone directly, but only for non-residential use, such as a hotel or a property run as a business, and it comes with accounting and tax obligations every month. For a home you will live in or rent occasionally, the fideicomiso is usually the simpler path. The right structure depends on your plans, your nationality and your taxes, so talk it through with us and with an independent lawyer before you decide.
Questions buyers ask
Is a fideicomiso safe?
Yes. It is defined in federal law, it is registered, and the bank acts only on your instruction. The risk in a purchase is usually the property, not the trust, which is why the title review matters.
Can I rent out a property held in a fideicomiso?
Yes. The beneficiary can rent the property and keep the income, paying the corresponding Mexican taxes.
Can I get a mortgage with a fideicomiso?
Some lenders finance purchases held in a trust. We can introduce you to the options that work with foreign buyers.
Do Mexicans need a fideicomiso?
No. Mexican citizens buy directly, with the deed in their own name.
What happens after 50 years?
The trust can be renewed for another term. You can also transfer your rights by selling before then.
Talk it through before you buy
Every buyer’s case is different. Tell us where you live, how you plan to use the property and who should inherit it, and we will walk you through the structure with an independent lawyer.
Keep reading
How Americans buyThe order that works for US buyers.
How Canadians buyThe guide for Canadian buyers.
Verify your agentCheck a license in the state registry.
Sources: Constitution of Mexico, article 27, section I; Ley de Inversión Extranjera, articles 10 to 14 (Cámara de Diputados); permit for trusts in the restricted zone (SRE). Reviewed October 2026. This guide is general information, not legal or tax advice.
Hola!Living in the Riviera Maya since 2001, founder of Playa Realtors in 2008. Our team helps buyers and sellers from Cancún to Tulum, with a deeper service for buyers who want independent representation.
