Trust for Purchasing Property in Mexico: What Every Foreigner Should Know
Are you a foreigner considering buying property in Mexico? Then, you need to know about the trust for buying property in Mexico, a legal mechanism that makes your investment possible in areas such as Playa del Carmen, Tulum, or Puerto Morelos.
Why Does the Trust for Buying Property Exist?
According to the Mexican Constitution, foreign citizens cannot directly acquire properties in the so-called “restricted zone,” which covers 50 km from the coast and 100 km from the borders. However, the trust allows for a legal and safe solution.
This mechanism was created to encourage foreign investment without compromising national sovereignty.
What is a Real Estate Trust?
A trust is a legal contract between three parties:
- The foreign buyer: You, as an investor or buyer.
- The trustee bank: An authorized Mexican institution that acts as the legal “holder.”
- The settlor: The seller of the property.
Although the bank is listed as the owner before the Public Registry, you maintain total control over the use, rent, improvement, or sale of the property. It is a protected legal title.
Benefits of the Trust for Buying Property in Coastal Areas
Thanks to the trust, you can legally acquire properties in the most desirable areas of the country: from Tulum and Playa del Carmen to Puerto Morelos and Los Cabos. These locations, being in the restricted zone, require this legal figure so that you can exercise all your property rights as a foreigner.
How Long Does it Last and How is it Renewed?
The trust has an initial validity of 50 years and is renewable indefinitely. It can be inherited, transferred, or canceled if the property is sold to a Mexican national.
Trust for Buying Property: Costs and Fees That Every Foreigner Should Know
Initial costs vary between $2,000 and $3,000 USD, depending on the bank and location. In addition, there is an annual fee ranging from $500 to $1,000 USD for trust maintenance.
Advantages of the Trust for Foreigners
- 100% of rights over the property.
- Legal protection in accordance with Mexican law.
- Possibility of inheriting the property.
- Flexibility to rent it via Airbnb or other platforms.
- Access to privileged areas such as the Riviera Maya.
What Alternatives Exist?
If you wish to invest as a foreign company, it is also possible to create a legal entity in Mexico. However, this entails other legal and fiscal requirements. Therefore, for most individual buyers, the trust is the simplest route.
Step-by-Step Purchase Process
- Find the ideal property.
- Sign a purchase promise agreement.
- Request the creation of the trust from an authorized bank.
- The bank processes the permit before the Ministry of Foreign Affairs (SRE).
- You sign the public deed before a notary and that’s it: you are the legal owner.
Is it Safe to Buy with a Trust?
Yes. The trust is fully backed by Mexican law and is used by thousands of foreigners. It is a transparent, regulated, and common process in tourist areas. In addition, it gives you the peace of mind of having a clear legal structure.
Final Recommendations
- Work with an advisor who knows the process well.
- Ask about financing options.
- Request the assistance of a notary or lawyer during closing.
Whether you are looking for a second residence, an income via vacation rentals, or simply a personal paradise, the trust for buying property in Mexico is your legal and safe gateway.
Want to know more or see available properties?
Contact me via WhatsApp here and I will guide you through each step of the process. You can also explore properties listed on my site.
