Buying Property in Mexico
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A bank trust is an instrument used by non-Mexicans to purchase coastal property and other land in Mexico's 'restricted zones.' This bank trust is known as a fideicomiso. When talking about Mexican real estate in English, most people use the term "bank trust" because it is easier to pronounce than fideicomiso, but when involved in a Mexican real estate transaction, you should expect to hear and use the term "fideicomiso."
Mexican Bank trusts must be used by foreigners to acquire property in Mexico's restricted zones, usually the most desirable areas amongst buyers. These zones consist of coastal land between 60 feet from the mean high-tide line, up to 31 miles inland from the ocean, as well as land within 62 miles of Mexico's borders. This land is restricted, because Mexico’s Constitution has reserved it. In 1973, Mexico changed its foreign investment laws to encourage foreign investment in both real estate and corporations by instituting the use of Mexican bank trusts.