Fideicomiso Explained: How Foreigners Legally Own Property in Los Cabos

One of the most common questions I get from my American and Canadian clients when they start exploring real estate in Los Cabos is simple:

“Can I actually own property in Mexico?”

The answer is yes — and the legal structure that makes it possible is called a fideicomiso, or bank trust.

It’s not a loophole.
It’s not a workaround.
It’s the official legal system designed specifically for foreign buyers in Mexico’s coastal areas.

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What Is a Fideicomiso? 

A fideicomiso is a bank trust that allows foreign buyers to legally own property in restricted zones in Mexico, including Los Cabos.

Here’s how it works:

• A Mexican bank holds the title as trustee (fiduciario)
• The foreign buyer is the beneficiary (beneficiario)
• The buyer retains full ownership rights and control

There is no limitation on how you use your property.

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Why Does the Fideicomiso Exist?

Los Cabos is located within Mexico’s restricted zone, which includes:

• Land within 50 km (31 miles) of the coastline
• Land within 100 km (62 miles) of international borders

Under Mexican law, foreigners cannot hold direct title in these areas.

The fideicomiso was created by the Mexican government as a secure and regulated solution to allow international buyers to invest legally.

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What Rights Do You Have as the Buyer?

This is where most people are surprised:

👉 You have 100% control of the property

You can:

• Live in it
• Rent it (short or long term)
• Remodel or improve it
• Sell it at any time
• Pass it on to your heirs

The bank does not control your decisions — it simply holds the title for legal purposes.

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How Long Does a Fideicomiso Last?

• Initial term: 50 years
• Fully renewable indefinitely

This means your ownership is long-term and secure, just like in the U.S. or Canada.

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Costs of a Fideicomiso

Compared to other countries, the cost is very reasonable:

• Setup fee: ~$1,000 – $2,000 USD (one-time)
• Annual fee: ~$500 – $700 USD

That’s the cost of maintaining the legal structure with the bank.

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Important Truth Most Agents Don’t Explain

The fideicomiso is not temporary.

It has been used for over 50 years and is the standard method of ownership in:

• Los Cabos
• La Paz
• Todos Santos
• All coastal areas of Baja California Sur

Millions of dollars in real estate transactions happen under this structure every year.

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Why This Matters for You as a Buyer

Understanding the fideicomiso changes everything.

It removes:
❌ Fear
❌ Misinformation
❌ Hesitation

And replaces it with:
✔️ Clarity
✔️ Legal security
✔️ Confidence to invest

Author:

Stephanie Kotnik