Let’s say that you are planning on investing in a property in Los Cabos today and you hear for the first time that you need a Fideicomiso to do so. If you are going to do such an important move then you would want to know what this is. Right now we will explore the fundamentals of a Fideicomiso, how it facilitates property ownership in Mexico and why it plays a crucial role in property transactions involving foreign investors.

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What is a Fideicomiso?

It is ownership authorized by the Mexican government and secured by the Central Bank of Mexico. The trust is authorized via a permit issued by the Secretaria of Foreign Affairs (Secretaria de Relaciones Exteriores) and in accordance with the 27 articles of the Mexican Constitution.

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It’s important to mention that the properties held in the bank trust are not assets of the bank and the bank acts on behalf of the buyer and holds the title.

The bank has a fiduciary obligation to follow the directions and wishes of the foreign buyer. The foreign buyer can enjoy, use, rent out, improve upon, expand, build and sell the property and reap 100% of the profits.

So a Fideicomiso gives you legality, control & protection. This is vital for any foreigner looking to invest in Mexican real estate. Reach out to TAO Mexico to  connect you with a knowledgeable real estate professional in the area who can guide you through this critical step of your investment.

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Interested in making your dream of owning a property in Mexico a reality? Contact us today to learn more.

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