If you are a foreigner buying within Mexico's "restricted zone" — the 50 km coastal strip that includes all of Banderas Bay — you cannot hold direct title in your own name. Instead, you own through a fideicomiso, a bank trust. This is normal, secure, and how the vast majority of foreign-owned Vallarta property is held.
How the trust works
A Mexican bank acts as trustee and holds title on your behalf, while you — the beneficiary — retain all rights of ownership: to use, rent, renovate, sell, or pass the property to heirs. The bank cannot sell or encumber the property; it simply holds legal title.
What it costs
- Setup: a one-time establishment fee, typically a few thousand US dollars including permits.
- Annual fee: a recurring trustee fee, generally $500–$800 USD per year depending on the bank.
Term and renewal
Fideicomisos run for 50 years and are renewable indefinitely. They transfer cleanly to heirs, which makes estate planning straightforward when structured correctly.
Should you use a corporation instead?
Buyers acquiring multiple income properties sometimes use a Mexican corporation rather than a trust. This can make sense at scale but adds accounting and tax obligations. Always confirm the right structure with a Mexican real estate attorney and a cross-border tax advisor before closing.
Once you own, the next question is operations — see our property management pillar for how owners protect and monetize the asset.
Frequently Asked Questions
Yes. The bank only holds legal title as trustee; you retain full ownership rights and the bank cannot sell or borrow against your property.
Annual trustee fees typically run $500–$800 USD, plus a one-time setup cost at purchase.
Yes. You can name substitute beneficiaries, and the property passes to them without going through Mexican probate.
