The Restricted Zone
Article 27 of the Mexican Constitution prohibits direct foreign ownership of land within 50km of the coastline or 100km of international borders. Since most beach destinations (Tulum, Cancún, Bacalar, Sisal) fall in this zone, foreigners use one of two legal structures.
Option 1: Fideicomiso (Bank Trust)
The most common structure. A Mexican bank holds legal title as trustee, while you (the foreign buyer) are the beneficiary with full rights: occupy, rent, renovate, sell, or pass to heirs. The trust is renewable every 50 years. Setup cost: $800–$1,500 USD. Annual fee: $500–$700 USD.
Option 2: Mexican Corporation (Sociedad Anónima)
For investment properties or commercial use, forming a Mexican corporation (SA or SAPI de CV) allows direct ownership. More complex and expensive to set up ($1,500–$3,000+), requires Mexican accounting/tax compliance, but offers more flexibility for multiple properties.
Outside the Restricted Zone
In Mérida (44km from coast — technically outside the restricted zone, debated), foreigners can own property directly, though many still use a Fideicomiso for additional protection and estate planning ease.
Your Rights as Fideicomiso Beneficiary
Despite not holding legal title, as a Fideicomiso beneficiary you have all practical rights of ownership: live in the property, rent it, renovate it, sell your beneficial rights, and pass to heirs through your will.
Recent Changes: 2024–2025
Mexico has maintained a stable legal framework for foreign buyers for decades. No major changes to the Fideicomiso structure occurred in 2024. Watch for updates to rental regulations in tourist zones, particularly in Quintana Roo.