What is a Fideicomiso?
Well, odds are you are already familiar with it! In simple terms it is a trust that allows foreigners to purchase land in Mexico. Continue reading this issue of Terry Insight and learn all about it!
As a foreigner you often hear about how buying a property in Mexico must be scary or difficult. Well thankfully we're here to tell you it's not. Thanks to a handy tool we call Fideicomiso or trust in english. Fideicomiso in Mexico is very similar to a U.S/Canada trust. It is set up with a bank in Mexico which acts as an administrator.
You as the property owner become the beneficiary of the trust enabling you to sell, buy, or improve the property as you desire. The fideicomiso also protects you from lawsuits seeking the property.
Due to Cabo and San jose being within 50km range of beachfront, foreigners are required to to obtain a Fideicomiso. These are on 50 year terms and offer renewal in perpetuity. This allows you to renew as many times as you wish. It also gives you the option to have your heirs inherit the fideicomiso and if you choose to sell the buyer can assume the term as well. The pricing on holding a fideicomiso is fair and usually runs our clients around $2,000 USD for initial setup and $500 a year after that.
As always if you have any questions regarding anything we write about on the Terry Insight please feel free to comment or Email us!
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