Frequently Asked Questions
Our faqs are divided into two categories- legal and consumer. Below are examples from each of these categories with links to their separate pages and many more questions and answers. We trust that we've provided here a broad spectrum of answers to bring some understanding and familiarity about the area and the great opportunity of investing with your IRA in this prime Mexican real estate location. Please feel free to contact us with any questions. contact fundvallarta.com

Consumer Frequently Asked Questions:

Can I own real estate in Mexico in my name?

It is a common misconception that foreigners can not own real estate in Mexico in their name. A foreigner can own in his/her name any property outside the restricted zone, which are 50 kilometers from the ocean and 100 kilometers from the border. And can also own through a corporation, subject to Mexican law. 

Puerto Vallarta Real Estate IRAWithin the restricted zone, foreigners must own property in a beneficial trust called a fideicomiso.  The title is held in the name of a Mexican Bank, and gives the holder of the trust (primary beneficiary) all rights to the property except to the title.  A fideicomiso may be obtained by the buyer through a Notario (explained below), an attorney, or through a Mexican bank. The bank or your attorney will apply to the Ministry of Foreign Affairs for the right to acquire title to the property, and will handle all the paperwork along with the Notario. The fee to the bank for setting up a trust is around $500 USD, plus an annual administration fee.

In my opinion, the fideicomiso offers the owner two very important benefits, complete safety, and estate planning (you may name your heirs to the property when you form your trust). These heirs would be named in the trust as “secondary beneficiaries to the trust”.  In the event of the primary beneficiary’s death during ownership, all that is needed for the heirs to become primary beneficiaries are the passports, a copy of the trust and the death certificate. There may be a small charge from the Notario or bank to handle the paper work. The Trustee (Mexican Bank) is responsible to the buyer/beneficiary to insure precise fulfillment of the trust according to Mexican law, assuming full responsibility in order to protect the interests of the buyer/beneficiary.

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Legal Frequently Asked Questions

What is a FIDEICOMISO?  (Mexican Bank Trust)

Pronounced “fee-day-co-miso.”  This is a legal structure which allows non-Mexicans to purchase real estate property located in the “Restricted Zone”.   This zone encompasses the areas along the coasts and borders of Mexico.  Essentially, it is a recorded contractual arrangement where a property is held in “Trust” by a bank for a specific purchaser, or beneficiary.  In all material respects it is similar to the type of Trusts commonly used in the United States and Canada to hold property for estate planning purposes.Mexican Bank Trust


In order to establish a Trust a permit is required from the Secretary of Foreign Relations.  Such a permit is usually issued for a term of fifty years and can be renewed for an additional term of fifty years.  Contrary to the commonly held misconception, a Mexican Bank Trust (FIDEICOMISO) is not a lease.  It is a form of ownership in which real property is transferred into a Trust for the sole purpose of the Beneficiary.  It is not necessarily better or worse than fee simple ownership . . . just different.

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 There is financing available for United States and Canadian citizens through some local banks....  There are companies that offer financing at reasonable interest rates and terms through U.S. based companies. Currently, rates are in the neighborhood of 8%. Financing is now in the process of becoming available for pre-sales.

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