1) Legal Foundation & Historical Background

The “restricted zone” framework is rooted in Article 27 of the Political Constitution of the United Mexican States, which protects strategic coastlines and borderlands. Official guidance from Mexico’s Ministry of Foreign Affairs (SRE) explains that foreigners cannot hold direct title to residential real estate within the zone but may acquire rights through a fideicomiso (bank trust). The zone is defined as 100 km (≈62 miles) from international borders and 50 km (≈31 miles) from the seacoast. Federal statutes and regulations—especially the Foreign Investment Law and its rules—outline how trusts and corporate alternatives interact with these constitutional limits.

In practice, this means international buyers seeking a beach condo in Cancún, a home in Puerto Vallarta, or a lot in Los Cabos will nearly always use a bank trust. By contrast, a ranch in Guanajuato or San Miguel de Allende (outside the zone) can often be acquired by a foreign individual via direct deed with a standard SRE statement (“Calvo clause”).

2) What Exactly Is a Fideicomiso?

A fideicomiso is a Mexican bank trust where the trustee bank holds legal title to a specific property, and the foreign buyer holds the beneficial rights. Major Mexican banks (e.g., BBVA, Banorte) publicly describe this structure for foreigners. Typical features include:

• Term: 50 years, renewable for additional 50-year periods.
• Rights for the beneficiary: occupy and enjoy the property; improve it; lease it (subject to local/HOA rules); sell/assign the beneficial interest; and name substitute beneficiaries (heirs).
• Formalization: executed by a Notary Public (Notario) via a notarized deed and recorded with the Public Registry of Property.

Although the bank is on title, it does not “use” your property; rather, it is a fiduciary that must follow the trust deed. The deed spells out your rights and the bank’s obligations. Proper drafting and a reputable trustee are key.

3) How the Fideicomiso Works for Foreign Buyers

4) Benefits for Foreign Buyers

• Constitutional compliance with ownership-like control. You get market access in beach/border areas while respecting Article 27.
• Estate-planning advantages. Substitute beneficiaries in the deed often allow the property to pass outside Mexican probate for that asset.
• Legal certainty via notarial system. Mexican notaries are public officers tasked with providing legal certainty, registering deeds, and handling taxes tied to the instrument.
• Bank fiduciary oversight. A regulated financial institution is bound to the trust terms.

5) Costs, Fees, and Timelines (Plan Your Budget)

• SRE trust permit: The Ministry of Foreign Affairs publishes official fees. As of Dec 30, 2024, the listed fee for “expedición del permiso para constituir fideicomiso en la zona restringida” is MXN 19,950. (Fees and time frames update periodically.)
• Bank trustee tariffs: Setup and annual administration vary by bank and location. Market quotes commonly show USD 1,000–3,000 one-time setup and USD 450–1,000 annually. Always request current bank schedules in writing.
• Closing costs overall: In addition to the trust, buyers pay notary fees, acquisition/transfer taxes, appraisals, and registry fees. Depending on state/municipality and price, a directional estimate some buyers see is ~6–8% of price (obtain a written notary quote for accuracy).
• Timelines: Once documentation is complete, banks frequently cite ~business-week scale processing for the trust permit and constitution; local registry backlogs can extend calendar time.

Assumptions & constraints: All figures are illustrative and vary by bank, state, and deal profile. Confirm with your notary and trustee for your specific file.

6) Alternatives: Direct Title (Outside the Zone) and Mexican Corporations

Direct title: Outside the restricted zone, foreign individuals commonly acquire direct title (deed) with a standard statement to SRE. Mexican corporations: Within the restricted zone, a Mexican company (including one with 100% foreign capital) may hold direct title for non-residential purposes (e.g., hotels or commercial operations). Companies that acquire restricted-zone property for non-residential use must present an SRE notice within 60 business days after acquisition; late filings face higher government fees.

7) Risks, Misconceptions & How to Avoid Pitfalls

(a) “The bank owns my home—can they take it?”

The bank holds legal title as fiduciary, but you hold the beneficial rights defined in the deed. Choose a reputable trustee; have the Notary verify your deed and registrations. Keep bank fees current.

(b) “Is a trust just a lease?”

No. A lease grants occupancy; the fideicomiso conveys broad ownership-like powers including sale/assignment and succession designations.

(c) Ejido land traps

Ejido land is communal and not private property. Before any sale, it must be regularized—e.g., adoption of dominio pleno approved by the Ejido Assembly and registered with the Registro Agrario Nacional (RAN). Buying unregularized ejido land is high-risk. Ask your Notary to check RAN records and confirm a clean title chain in the Public Registry.

(d) “I’ll set up a company for my beach house.”

The corporate path in the restricted zone exists for non-residential purposes. Using a company solely to park a personal residence may misalign with the law and triggers compliance (including the 60-business-day SRE notice after acquisition).

(e) Underestimating the Notary’s role

In Mexico, the Notary is a state-appointed public officer whose mission is legal certainty: advising both parties, drafting the deed, calculating and paying transaction taxes, and recording the instrument. Engage the Notary early and obtain a written fee/tax quote.

8) Scenario-Based Examples

Scenario 1: Beach condo with occasional short-term rental

A Canadian buyer acquires a condo in Puerto Morelos (restricted zone). The trustee bank secures the SRE permit, the Notary formalizes the trust, and the deed is recorded. The buyer names children as substitute beneficiaries to streamline inheritance. Bank setup and annual fees apply, along with state/municipal closing costs.

Scenario 2: Boutique hotel near the coast

A U.S. investor group forms a Mexican company to buy a hotel property (non-residential use) within the restricted zone. After closing, the company files the mandatory SRE notice within 60 business days and maintains corporate/tax compliance.

Scenario 3: Ranch outside the zone

A European buyer acquires acreage inland. No trust is needed; the buyer signs a deed before a Notary, files the standard SRE statement, pays taxes/fees, and records the instrument.

9) Practical Checklist (Assumptions & Constraints)

• Confirm location: Is the parcel within 50 km of the coast or 100 km of a border?
• Verify private title: Demand prior deeds, no-lien certificate, cadastral data. If ejido origin is suspected, confirm dominio pleno and RAN registrations.
• Bank selection: Ask at least two banks for trust tariffs (setup + annual) and renewal procedures.
• Notary engagement: Secure a written quote for notary fees, taxes, and registry expenses.
• Calendar filings: For corporate non-residential acquisitions in the restricted zone, file the SRE notice within 60 business days to avoid higher fees.
• Estate plan: Coordinate substitute beneficiaries in the trust with your home-country will and tax planning.

10) How MexicoPropertiesyKreto.com Helps

Conclusion

The fideicomiso is a long-standing, government-sanctioned solution that gives foreigners ownership-like control of residential real estate in Mexico’s most desirable coastal and border regions. It balances market access with constitutional safeguards, while offering valuable estate-planning and legal-certainty benefits. Alternatives exist for inland properties and for commercial projects, but each path has specific filings, costs, and compliance steps. With disciplined due diligence, careful drafting, and the right partners, international buyers can purchase in Mexico confidently and lawfully.

References & Where to Verify

• SRE (Consulate – UK): “Acquisition of Properties in Mexico.” Defines restricted zone (100 km borders, 50 km coasts). (Accessed Oct 3, 2025). Link.
• SRE (Official): “Permiso para constituir fideicomiso en zona restringida.” Procedure notice (Oct 2, 2020; live 2025). Link.
• SRE (Costs & Times): Fee schedule—“Por expedición del permiso para constituir fideicomiso en la zona restringida”: MXN 19,950 (published Dec 30, 2024; confirm updates). Link.
• BBVA México: “Fideicomiso de Zona Restringida”—50-year renewable term; notarial execution; SRE permit; possible N.R.F.I. registration. Link.
• Banorte: “Zona Restringida”—trust for foreigners; SRE permit; registration in Public Registry and National Registry of Foreign Investment. Link.
• SRE (Corporate Non-Residential Route): “Aviso de adquisición de inmuebles por sociedades mexicanas… en la zona restringida, fin no residencial”—notice due within 60 business days; includes cost/time sections (Apr 14, 2023). Link.
• Ventanilla Única (Secretaría de Economía): Trust permit overview; filing channels; note on corporate residential restrictions in the zone (Oct 29, 2024). Link.
• Colegio Nacional del Notariado Mexicano: Role of the Notary in providing legal certainty for conveyances. Link.
• Notary Laws (examples): Ley del Notariado del Estado de México (last reform Apr 3, 2025)—public-office nature and functions. PDF.
• RAN (Registro Agrario Nacional): Programs and information relevant to regularization and dominio pleno (ejido to private). Link · Ley Agraria excerpts.
• General explainer (law firm): CCN Law—key considerations on restricted zone and Article 27 (Jun 26, 2025). Link.

If any specific data point above shows as N/D or changes (e.g., fees), verify directly on the linked SRE pages or request a written quote from your Notary and trustee bank.