Foreigners buying property in the restricted zone of Mexico are required to purchase through a (fideicomiso) bank trust. In some cases, the buyer will take over an existing bank trust. This is known as an Assignment of Rights (Cesión de Derechos) and depending on the amount of time left on the existing trust, you may be advised as the buyer to take over the trust rather than pay set-up costs to create a new trust.
We offer comprehensive and personalized estate planning, asset protection, business succession planning, business formation, probate and trust administration, charitable planning, and estate litigation services. We are privileged to work with many individuals, families, and business owners to provide them peace of mind and would appreciate the opportunity to do the same for you.
How a fideicomiso actually works
The Mexican constitution restricts direct foreign ownership of residential land within the restricted zone — roughly 50 km from any coastline and 100 km from the borders, which covers all of Puerto Vallarta, Nuevo Vallarta and the Riviera Nayarit. The fideicomiso is the legal bridge: a Mexican bank holds title as trustee, and you, as beneficiary, keep every right that matters — to occupy, rent, remodel, mortgage, sell and pass the property to your heirs.
The trust runs for 50 years and is renewable, so it is not a lease and it does not expire out from under you. The bank cannot use, sell or encumber your property; its role is custodial. In practice, owning through a well-drafted fideicomiso feels exactly like owning outright — the differences appear only when the trust was drafted carelessly.
New trust or assignment of rights?
When you buy a resale, there is often an existing trust that can be transferred to you (a cesión de derechos) instead of creating a new one. Which route is cheaper and safer depends on the bank, the years remaining, the transfer fees and how the existing trust was written. We run that comparison for every purchase — it is a decision worth real money, and it should be made with the numbers in front of you.
Your trust is also your estate plan
A properly structured fideicomiso names substitute beneficiaries — the people who receive the property directly if something happens to you, without a Mexican probate process. Done right, it is one of the cleanest inheritance tools available to foreign owners. Done wrong (or left blank), it condemns your family to exactly the court process the trust was supposed to avoid. Reviewing the beneficiary clauses of an existing trust takes us very little time and is one of the most valuable checkups we offer.
What we handle for you
- Trust setup with the bank, SRE permit and coordination with the notaría
- Assignment of rights (cesión de derechos) on resale properties
- Beneficiary and inheritance clause review and amendments
- Trust renewals, bank fee disputes and trustee substitutions
- Cancellation of the trust when you sell or when the property leaves the restricted zone rules
Frequently Asked Questions
A fideicomiso is a renewable 50-year Mexican bank trust that lets foreigners hold residential property in the restricted zone — including all of Puerto Vallarta. You keep full rights to use, rent, remodel, sell and leave the property to your heirs; the bank simply holds title as trustee.
You are the beneficiary of the trust, with complete control over the property. The bank cannot use, sell or encumber it. That said, how the trust is drafted matters enormously — beneficiaries, substitutes and inheritance clauses need to be right the first time.
Yes — a properly structured trust names substitute beneficiaries, which lets your heirs receive the property without a Mexican probate process. Whether your current trust actually does this is one of the first things we check.
Sometimes you can take over the existing trust; sometimes a new one is better. The right answer depends on the bank, the remaining term and the costs involved — bring us the details and we will tell you which route protects you best.
