A fideicomiso is a bank trust that allows foreigners to own property in Mexico’s restricted zones. The bank holds the title for the buyer, but the foreigner retains full control over the property.

Key Features:

• Designed for Personal Use – Ideal for vacation homes, retirement properties, or personal residences

• You Have Full Control – Buy, sell, lease, or pass it to heirs

• Renewable for 50 Years – Can be renewed indefinitely

• Government Approved – Ensures compliance with foreign ownership laws

Limitations:

• Annual Maintenance Fees – Usually $500-$700 USD per year

• Not Ideal for Commercial Use – If you're planning to run a rental business, a corporation may be better

Best Used When:

• Buying a home for personal use (vacation, retirement, second home)

• You don’t plan to run a rental business or commercial operation

• You want a simple ownership structure

Foreigners can form a Mexican corporation (often an S. de R.L. or S.A. de C.V.) to own property and conduct business in Mexico. Unlike a fideicomiso, an LLC directly owns the property and can legally operate income-generating activities.

Key Features:

• No Need for a Fideicomiso – The company directly holds the title

• Can Be Used for Commercial Purposes – You can legally rent the property, run a hotel, or develop land

• Multiple Owners Allowed – Foreign investors can be shareholders

• Potential Tax Advantages – Business expenses can be deducted

Limitations:

• More Complex & Expensive to Set Up – Requires legal fees, accounting, and business registration

• Ongoing Tax & Reporting Requirements – Must file monthly/annual tax reports with Mexico’s tax authority (SAT)

• No Personal Use Benefits – If you personally use the property, it may be considered a taxable company benefit

Best Used When:

• Buying property for business purposes (rentals, Airbnbs, hotels, commercial real estate)

• You plan to develop multiple properties or run a real estate investment business

• You want multiple owners/shareholders to invest in a property

Fideicomiso (Bank Trust)

Ideal for individuals or families purchasing personal or vacation properties in Mexico’s restricted zones (near coastlines or borders).

Best For: Personal homes and vacation properties

Ownership Structure: A Mexican bank holds the title, but you retain full control and beneficiary rights

Can You Rent It Out? Yes, though you'll need to meet specific tax and reporting obligations

Multiple Properties? No – you need one fideicomiso per property

Tax & Reporting Requirements: Minimal

Setup Costs: $2,000–$3,000 USD

Annual Costs: $500–$700 USD in trust maintenance fees

Foreign Ownership: Yes – allowed through the trust

Legal Complexity: Relatively simple and streamlined

Mexican LLC (Corporation)

Designed for investment or commercial use, an LLC allows more flexibility for owning multiple properties and running a real estate business.

Best For: Commercial rentals and real estate businesses

Ownership Structure: The LLC holds the title; you own the company

Can You Rent It Out? Yes – and it’s built for rental or business operations

Multiple Properties? Yes – a single LLC can own several properties

Tax & Reporting Requirements: Requires regular accounting, tax filings, and legal compliance

Setup Costs: $3,000–$5,000 USD

Annual Costs: Accounting services, taxes, and filings (varies based on activity)

Foreign Ownership: Yes – foreigners can own 100% of a Mexican LLC

Legal Complexity: More complex – legal and accounting support recommended