What is a trust and why is it so important for those who want to buy a house in Mexico?
If you're a foreigner thinking about buying property in Mazatlán or any other beautiful part of Mexico, you've probably heard the word "fideicomiso" (trust) and it might have caused you some confusion. What is it? Why is it essential? Don't worry, we'll explain it to you simply and clearly.
Trust: the best legal friend of foreigners
In Mexico, by law, foreigners cannot directly purchase property in certain prime areas, such as those near the beach or on the border (where those dream homes are!). This is where the fideicomiso comes in, which is like a "special agreement" between you and a Mexican bank that acts as your official guardian.
Think of the trust as a magical contract that allows you to have complete control and enjoy the property as if it were your own, even though the bank is the "official" owner of the land. You can live there, rent it out, or even leave it as an inheritance. Doesn't sound bad, does it?
How does this magic contract work?
The trustee bank appears as the owner in the public records, but you are the true beneficiary. Furthermore, this contract lasts for 50 years and is renewable, so there's no rush!
The best part: the bank can't do anything with your property without your permission! So your investment is safe and secure.
What do you need to get your trust?
- A copy of your passport and your visa or legal stay in Mexico.
- Choose a bank that can act as a trustee.
- Sign the contract before a notary.
- Request permission from the Ministry of Foreign Affairs.
- And that's it! Just a few administrative payments and you can enjoy your new property!
What costs should you keep in mind?
In addition to the price of the house, you have to consider:
- An annual fee for the maintenance of the trust (roughly between $450 and $555).
- Some notary fees and legal procedures.
- The taxes that Mexican law requires.
Nothing exaggerated to ensure that everything is in order and your assets are protected.
Why is a trust your best ally as a foreign buyer?
Because without it, you couldn't legally buy in the most attractive and sought-after locations like Mazatlán. It gives you peace of mind, security, and support so you can focus solely on enjoying your new home or investment.
If you're thinking about taking the plunge and want to buy a house in Mexico, but the trust process still sounds complicated, don't hesitate to contact us. We're here to help make the whole process easy, clear, and secure.
