What is the restricted zone?
The Mexican Constitution defines a strip extending 100 kilometers from the borders and 50 kilometers from the beaches. Foreigners may not acquire direct title to land and water within that zone.
What does the trust do?
A Mexican credit institution holds the rights to the property as trustee. The foreign buyer is the beneficiary and receives the use and enjoyment rights defined in the contract, without direct title being created in the buyer’s name.
The structure requires authorization from Mexico’s Ministry of Foreign Affairs and must be formalized in a public deed.
Duration
Mexico’s Foreign Investment Law provides a maximum 50-year term and allows an extension to be requested. The specific term, substitute beneficiaries, powers and conditions must be reviewed in the trust contract and with the notary.
General process
- Identify the property and complete legal due diligence.
- Select a Mexican bank to act as trustee.
- Prepare buyer, property, intended-use and beneficiary information.
- The trustee requests authorization from the Ministry of Foreign Affairs.
- Prepare and sign the public deed before a Mexican notary.
- Record the transaction with the Public Property Registry.
Costs and questions to anticipate
- Bank setup fee and annual trustee fee.
- Government permit, notary, appraisal, tax and registration costs.
- Rights to transfer the trust interest or name substitute beneficiaries.
- Procedure if the buyer cannot attend the signing in person.
- Foreign documents that need an apostille, translation or formal validation.