Thinking about a beachfront home or branded residence in the Riviera Maya but unsure how foreigners can legally own property near the coast? You are not alone. The key is a fideicomiso, a bank trust that gives you practical ownership rights while respecting Mexican law. In this guide, you will learn how a fideicomiso works, the steps to set one up, costs to expect, local risks to watch, and how to protect your investment from offer to closing. Let’s dive in.
What a fideicomiso is
A fideicomiso is a Mexican bank trust that lets you, as a foreign buyer, hold beneficial rights to real property in the restricted zone while a Mexican trustee bank holds legal title. You can typically use, lease, sell, mortgage, and pass the property to heirs according to the trust deed.
This structure exists because Mexico’s Constitution restricts direct foreign ownership within certain distances of the coast and borders. The Foreign Investment Law provides ways for foreign investment to happen legally, including through bank trusts. For coastal properties, an authorization that permits the trustee bank to hold title on your behalf may be required.
Where you need it in Riviera Maya
The restricted zone generally includes land within 50 kilometers of the coastline. The Riviera Maya falls inside this area, so most foreign buyers use a fideicomiso or buy through a properly structured Mexican company. If you are considering Playa del Carmen, Tulum, Puerto Morelos, Akumal, Puerto Aventuras, Cozumel, or similar coastal markets, plan on a trust solution.
How the trust is structured
A fideicomiso has three key parties. The trustee is a Mexican bank that holds legal title and follows the trust deed. The beneficiary is you, the foreign buyer, who holds beneficial rights. The settlor is often the seller or developer who places the property into the trust.
As beneficiary, you typically can occupy and enjoy the home, lease it short or long term, sell or transfer your beneficial interest, designate successor beneficiaries, and mortgage the property through trust-compatible structures. The bank’s role is administrative. It acts on your instructions within the terms of the deed.
Most trusts are set for a fixed term, commonly 50 years, and can be renewed. Your deed determines whether the trust is revocable, how amendments work, what the bank must do when you sell, and how successors are named. Review these points with counsel before you sign.
Buying step by step
Early due diligence
Start with property selection and due diligence led by an independent Mexican attorney or the Notario Público who will close your transaction. Typical checks include a title search, verification of encumbrances or liens, zoning and development permits, and a current survey that matches the legal description.
If you are purchasing in a condo or gated community, review the condominium regime, bylaws, minutes, reserves, and current fees or special assessments. For preconstruction, be careful with deposit handling, developer timelines, and any power of attorney requests.
Trust setup and permits
You will choose a trustee bank and confirm its fees and processes. The trustee drafts the trust deed for your review. Depending on the location, an authorization for coastal property is typically needed so the trustee bank can hold title for you in the restricted zone.
Closing with a Notario Público
The Notario Público prepares the public deed that creates the trust or transfers an existing beneficial interest to you. At closing, funds and taxes are settled, and the trustee appears on the deed as the recorded owner. The notary then records the trust deed with the local Public Registry of Property.
Timeline overview
Timelines vary with the bank, notary, municipality, and complexity. Due diligence and contract review can take days to several weeks. Trust formation and any required authorization often take a few weeks to a few months. Registration is typically handled at or shortly after the notarial signing, with processing times varying by municipality.
Costs and taxes to expect
Expect several categories of costs, which vary by location and property value:
- Notary fees and deed expenses
- Public Registry and administrative fees
- Bank trustee fees for setup and annual administration
- Coastal authorization fees when applicable
- State transfer or acquisition tax
- Annual municipal property tax
- Legal counsel and optional title insurance
- Seller-side capital gains tax on a future sale, subject to residency and exemptions
Ask your notary and tax advisor for current figures based on your specific transaction. Avoid relying on generic quotes.
Financing and rentals
Mortgages in a fideicomiso
Mexican banks and some foreign lenders provide mortgages on trust-held properties. The lender’s security is handled within the trust, often by being named as a co-beneficiary or through a lien compatible with the trust structure. Terms and availability depend on the lender and your residency.
Rental income and taxes
If you plan to do short-term rentals, know that rental income is taxable in Mexico. Registration and tax treatment depend on your tax residency and chosen structure. Value-added tax may apply to commercial rentals and related services. A local tax advisor can help you set up the right compliance path from day one.
Due diligence and risk checks
Protect yourself by addressing these items early:
- Title and encumbrances. Verify clean title, liens, easements, and judgments in the Public Registry.
- Trust deed terms. Confirm your right to use, lease, sell, mortgage, and name successors. Clarify trustee fees and procedures.
- Trustee bank. Choose an experienced bank and confirm service standards, documentation needs, and response timelines.
- Survey and cadastral data. Align the physical boundaries with the legal description.
- Permits and compliance. Validate building permits for existing structures and any planned work.
Environmental and archaeological checks
In the Riviera Maya, environmental sensitivity is real. Review proximity to mangroves, cenotes, and coastal federal zones. Certain areas require additional permits or restrict building. If construction could affect archaeological zones, the appropriate authority may need to be consulted and clearances obtained.
ZOFEMAT and waterfront
If your property touches dunes or waterfront, confirm no encroachment into the federal maritime-terrestrial zone and verify compliance with coastal regulations. These rules are strict, so confirm setbacks and any concessions before you close.
Condos and HOAs
For condominiums and gated communities, dig into bylaws, budgets, reserve funds, and special assessments. Understand rules affecting rentals, renovations, parking, pets, and shared amenities. Align your use plans with the regime before you buy.
Fraud prevention and escrow
Insist on an in-person notarial closing when possible. Verify identities and signing authority. Use secure payment methods and avoid pressure to move cash outside proper channels. Explore escrow arrangements for deposits pending clear title.
Estate planning and inheritance
A well-drafted trust deed usually lets you name successor beneficiaries, which can streamline transfer on death. Many foreign owners also prepare a Mexican will or coordinate it with their home-country plan so the local property is handled efficiently. If you sell, you will typically transfer your beneficial interest through the trustee, with the notary recording the transaction.
Alternatives to a fideicomiso
Some buyers choose to hold property through a Mexican corporation, particularly for commercial uses, multi-unit operations, or when running a business from the property. This route brings different tax and administrative requirements. Mexican citizens and eligible Mexican entities can hold title directly without a trust.
Practical checklist
Use this quick-reference list to stay organized:
- Engage a Notario Público and independent attorney with Riviera Maya experience
- Order a title search and verify liens, easements, and legal descriptions
- Confirm environmental and archaeological compliance where relevant
- Review condo regime, bylaws, minutes, and current fees for multi-unit properties
- Obtain a current survey and align with cadastral data
- Select a reputable trustee bank and confirm setup and annual fees
- Review the draft trust deed for rights to lease, sell, mortgage, and name heirs
- Verify any needed coastal authorization through the notary and trustee
- Confirm tax registrations and rental compliance if you plan to operate rentals
- Use escrow for deposits and verify all identities and signing authorities
Work with a trusted concierge
Buying in the Riviera Maya should feel exciting and secure. With the right team, a fideicomiso is a clear, proven path to own and enjoy your coastal property with confidence. From curated property selection to trust formation, notarial closing, and rental readiness, ÉLEVÉE Legacy Collection guides you through every step with bilingual, white-glove service. Schedule Your Private Tour to explore trophy residences and a streamlined path to ownership.
FAQs
What is a fideicomiso for coastal property?
- It is a Mexican bank trust that lets a foreign buyer hold beneficial ownership rights while a Mexican bank holds legal title within the restricted zone.
Do I need a fideicomiso in the Riviera Maya?
- Most foreign buyers do, because the Riviera Maya is within the restricted zone; a trust or a properly structured Mexican company is standard.
How long does a fideicomiso last?
- Trusts are commonly set for 50 years and can include renewals; confirm the term and renewal procedure in your deed.
Can I sell or mortgage a trust-held property?
- Yes. Beneficiaries typically can sell, transfer, lease, and mortgage through trust-compatible structures, subject to deed terms and lender requirements.
Who handles closing in Mexico?
- The Notario Público prepares and authenticates the deed, calculates certain taxes, and records the transaction with the Public Registry.
What costs should I plan for at closing?
- Expect notary and deed fees, public registry fees, trustee setup and annual fees, any coastal authorization costs, state transfer tax, and legal fees.
What local risks are unique to the Riviera Maya?
- Environmental protections for mangroves and cenotes, coastal-zone rules, archaeological constraints, municipal rental regulations, and variable infrastructure conditions warrant extra due diligence.
