Bank Trust (Fideicomiso) for Foreigners in Puerto Vallarta
In Puerto Vallarta, which lies within Mexico’s restricted zone, foreigners are not allowed to purchase property with direct ownership. To enable foreign buyers to invest securely, the legal mechanism known as a bank trust, or fideicomiso, is used.
A fideicomiso is an agreement where a Mexican bank acts as the trustee and holds the legal title to the property, while the foreign buyer is the beneficiary. Through this arrangement, the beneficiary obtains full rights to use, rent, sell, inherit, or modify the property, much like traditional ownership.
The process involves obtaining authorization from the Mexican Ministry of Foreign Affairs (Secretaría de Relaciones Exteriores, SRE), signing the trust contract before a notary public, and registering it with the Public Property Registry. Banks authorized to provide these trust services include Banco del Bajío, Scotiabank, Banorte, BBVA, Monex, and Intercam, among others.
The timeframe for establishing a fideicomiso generally ranges between six and ten weeks, depending on the bank, notary, and the speed of SRE approval. When handled properly, this process provides legal certainty and protection for foreign buyers.
Costs include an initial fee for trust setup, typically between 25,000 and 35,000 Mexican pesos, plus notary fees, taxes, and acquisition rights, which usually amount to five to seven percent of the property’s value. Additionally, an annual maintenance fee is charged, usually between 500 and 800 US dollars, depending on the bank.
Unlike Mexican citizens, who acquire properties through direct ownership without the involvement of a trustee and without annual fees, foreigners must use the fideicomiso to ensure legal compliance. While the process for nationals is faster and less costly annually, the fideicomiso offers foreigners a secure and legally recognized way to invest in Puerto Vallarta real estate without sacrificing ownership rights.
At Canoa Real Estate, we have the expertise and support necessary to guide each foreign client confidently through every step of the purchasing process, ensuring a secure and reliable investment.