If you’ve started researching real estate in Los Cabos, you’ve likely come across the term fideicomiso. For most foreign buyers, this is the key to owning beachfront property in Mexico. Let’s break it down in simple terms.
🇲🇽 What is a Fideicomiso?
A fideicomiso is a real estate trust agreement created with a Mexican bank that allows foreigners to purchase property in restricted zones — which includes all of Los Cabos and Baja California Sur’s coastline.
- The bank holds the legal title.
- You, the buyer, are the beneficiary.
- As beneficiary, you enjoy all rights of ownership.
Think of it as a legal framework designed to keep you compliant with Mexican law, while still giving you full control of your property.
📍 Why Do You Need One?
The Mexican Constitution prohibits foreigners from directly owning property:
- Within 50 km (31 miles) of coastlines
- Within 100 km (62 miles) of international borders
Since Los Cabos is on the southern tip of Baja California Sur, nearly every beachfront property requires a fideicomiso.
✅ What Rights Do You Have?
Owning through a fideicomiso gives you:
- Right to occupy → live in your home full-time or part-time.
- Right to rent → earn income through short- or long-term rentals.
- Right to remodel/build → with required permits.
- Right to sell → transfer the property at any time.
- Right to inherit → designate heirs directly in the trust.
In practice, your rights are the same as a Mexican citizen’s.
💰 Costs & Terms
- Setup Fee: $2,000–$3,000 USD (one-time, at closing).
- Annual Administration Fee: $500–$700 USD, payable to the bank.
- Duration: 50 years, renewable indefinitely in 50-year increments.
🔄 Renewal & Inheritance
- Renewal is straightforward — banks notify you well before expiration.
- You can assign heirs when the trust is created. This allows your children or spouse to inherit smoothly, without Mexican probate court.
🤔 FAQs About Fideicomiso
Q: Can the bank take my property?
A: No. The bank acts only as trustee. They have no ownership rights — you are the sole beneficiary.
Q: What happens if I sell my property?
A: The fideicomiso can be transferred to the new buyer or canceled at closing.
Q: Is fideicomiso safe?
A: Yes. It has been the standard legal structure for foreign ownership in Mexico for decades and is backed by federal law.
📞 Ready to Own in Cabo?
At FINN.group, we guide you step by step through the fideicomiso process so you can focus on finding the perfect home or investment.
👉 Contact us today to learn how easy it is to secure your Los Cabos property.