Buying process · Buyer guide
What Is a Fideicomiso? Everything US and Canadian Buyers Need to Know
The bank trust that lets foreign buyers own coastal property in Los Cabos — what it actually grants you, what it costs, and the questions worth asking before you sign.
In short
Foreign buyers in Los Cabos hold coastal property through a fideicomiso — a bank trust, not a lease or a workaround. The bank holds title in name only; the buyer holds every real ownership right: to sell, rent, renovate, refinance, and pass the property to heirs. Sanctioned by Mexico's constitution for the restricted coastal zone, the structure is standard, well-established, and used by thousands of US and Canadian owners across Los Cabos.
Key takeaways
- A fideicomiso is a Mexican bank trust: the bank holds title in name only, and you keep full rights to sell, rent, renovate, refinance, and bequeath the property.
- Budget roughly $1,500–$2,500 for setup and $500–$700 a year in trustee fees; the trust runs for 50 years and renews indefinitely with no cap.
- The trust assets are legally segregated from the bank's own balance sheet, so your property is protected even if the trustee bank fails.
What it is
A fideicomiso is a bank trust — not a lease, a workaround, or a time-limited permit to occupy. A Mexican bank holds the title on your behalf while you hold full ownership rights as the named beneficiary: you can sell, rent out, renovate, refinance, and pass the property to your heirs. The bank is the title holder in name only, a legal requirement for foreign nationals purchasing inside Mexico's restricted coastal zone.
This is the standard, government-sanctioned ownership structure used by thousands of US and Canadian property owners across Los Cabos. It is not unusual and it is not a risk — it is the system.
What it costs
Setup is a one-time fee of roughly $1,500–$2,500 USD, paid at closing. The annual trust fee paid to the trustee bank runs approximately $500–$700 per year. The trust itself lasts 50 years and is renewable indefinitely, with no cap on renewals — it passes to your named beneficiaries upon your death without going through Mexican probate.
Why it exists
Mexico's constitution restricts direct foreign ownership of property within 50 kilometers of any coastline and 100 kilometers of any international border. Los Cabos falls entirely within this zone. The fideicomiso was created specifically to allow foreign investment in these areas while maintaining constitutional compliance, and it has been in place — well established in Mexican law — for decades.
The alternative: a Mexican corporation (S.A. de C.V.)
Buyers whose primary purpose is rental income or commercial use can hold title directly through a Mexican corporation, bypassing the fideicomiso entirely. This has some tax advantages but carries ongoing administrative obligations — annual filings, accountant fees, and additional compliance. It's worth discussing if rental yield is central to your strategy; for most second-home buyers focused on personal use, the fideicomiso remains the cleaner path.
The questions buyers ask most
"What happens if the bank fails?" Trust assets are segregated from the bank's own balance sheet — your property cannot be seized in a bank insolvency.
"Can my children inherit the property?" Yes — you name beneficiaries in the trust documents, and the property transfers to them directly without Mexican probate.
"Can I sell whenever I want?" Yes, at any time, to any qualified buyer, at any price you negotiate — the fideicomiso does not restrict your exit.
"Do I need to be in Mexico to manage it?" No. The bank administers the trust, and annual fees are typically paid remotely by wire transfer.
Sources and limitations
Based on first-person guidance from Nolan Bonnstetter (Own Cabo Homes / Outliance), 13 years in real estate, 7 years exclusively in Los Cabos, 250+ transactions. Educational summary, not legal advice — confirm the specifics of your transaction with a licensed notario público and Mexican counsel.