Setting Up a Fideicomiso in Mérida and Yucatán with a Fideicomiso Attorney in Mérida
Foreigners looking to purchase property in Mérida or other parts of Yucatán often encounter the requirement to set up a fideicomiso. A fideicomiso is a Mexican bank trust that allows non-Mexican citizens to legally acquire and enjoy full rights over certain properties while complying with constitutional restrictions. Understanding how this structure works is essential, and working with an experienced fideicomiso attorney in Mérida ensures the process is handled correctly from start to finish.
​
Law Connection Group-Mérida is an English-speaking law firm that assists foreign buyers with establishing fideicomisos, coordinating with banks and notaries, and protecting their interests throughout the real estate transaction.
What Is a Fideicomiso?
A fideicomiso is a trust agreement established with a Mexican bank that holds legal title to a property on behalf of a foreign buyer. While the bank is the trustee, the foreign buyer is the beneficiary and retains full rights to use, lease, improve, sell, or pass the property to heirs.
​
​
In practical terms, a fideicomiso allows foreigners to:
​
-
Own residential or investment property legally
-
Rent or sell the property at any time
-
Designate beneficiaries for inheritance
-
Maintain long-term control over the asset
​
A real estate attorney in Yucatán ensures the trust structure aligns with the buyer’s goals and complies with Mexican law.
When Is a Fideicomiso Required?
Under Mexican law, foreign nationals cannot hold direct title to property located within the “restricted zone,” which includes land within 50 kilometers of the coast or 100 kilometers of an international border. Many desirable properties in Yucatán, including coastal areas near Progreso and surrounding regions, fall within this zone.
​
​
A fideicomiso is required when:
​
-
The buyer is not a Mexican citizen
-
The property is within the restricted zone
-
The property is intended for residential or investment use
​
For properties outside the restricted zone, foreigners may hold title directly, but legal review is still recommended.
The Process of Setting Up a Fideicomiso
Establishing a fideicomiso involves several legal and administrative steps. Proper coordination between the buyer, bank, notary, and legal counsel is essential.
​
​
The process typically includes:
​
-
Selecting an authorized Mexican bank to act as trustee
-
Applying for a permit from the Mexican Ministry of Foreign Affairs
-
Drafting the fideicomiso agreement
-
Completing property due diligence
-
Finalizing the trust at closing before a notary public
​
A fideicomiso attorney in Mérida manages this process to ensure accuracy and avoid delays.
Role of the Bank and the Beneficiary
The bank’s role as trustee is administrative and legal in nature. It does not control the property or make decisions regarding its use. The beneficiary, meaning the foreign buyer, retains full decision-making authority.
​
​
Beneficiaries may:
​
-
Occupy the property as a residence
-
Lease the property to third parties
-
Renovate or improve the property
-
Sell the property or assign rights
-
Name substitute beneficiaries
​
Your attorney ensures these rights are clearly reflected in the trust agreement.
Costs Associated with a Fideicomiso
Setting up and maintaining a fideicomiso involves initial and ongoing costs. These vary by bank and transaction but are important to understand upfront.
​
​
Common costs include:
​
-
Bank setup fees
-
Annual trustee maintenance fees
-
Government permit fees
-
Notary and registration costs
-
Legal fees for structuring and oversight
​
Law Connection Group-Mérida provides transparent cost estimates so clients can plan accordingly.
Duration and Renewal of the Fideicomiso
Fideicomisos are typically established for a term of 50 years and can be renewed indefinitely. Renewal is a straightforward legal process when handled properly and does not require selling or transferring the property.
​
A real estate attorney in Yucatán ensures renewals are completed on time to maintain uninterrupted ownership rights.
Fideicomiso vs. Buying Through a Mexican Company
Some foreign buyers consider purchasing property through a Mexican corporation instead of a fideicomiso. While this can be appropriate in certain investment scenarios, it carries different legal, tax, and compliance obligations.
​
​
Key differences include:
​
-
Corporate tax and accounting requirements
-
Restrictions on residential use
-
Ongoing reporting obligations
-
Different liability exposure
​
An attorney evaluates whether a fideicomiso or corporate structure best suits the client’s objectives.
Inheritance and Estate Planning with a Fideicomiso
One of the key advantages of a fideicomiso is the ability to name beneficiaries. This allows the property to pass directly to designated individuals without the need for lengthy probate proceedings in Mexico.
​
​
This provides:
​
-
Faster transfer upon death
-
Reduced legal costs
-
Greater certainty for heirs
​
Law Connection Group-Mérida assists clients in aligning fideicomiso beneficiary designations with broader estate planning goals.
Common Mistakes When Setting Up a Fideicomiso
Foreign buyers sometimes encounter issues due to incomplete legal guidance or rushed transactions.
​
​
Common mistakes include:
​
-
Skipping proper due diligence
-
Using generic trust agreements
-
Failing to name substitute beneficiaries
-
Not understanding annual obligations
​
Working with a fideicomiso attorney in Mérida helps avoid these risks.
Why Choose Law Connection Group-Mérida as Your Fideicomiso Attorney in Mérida?
Law Connection Group-Mérida specializes in assisting foreigners and English-speaking expats with real estate matters in Yucatán. Our firm provides clear communication, local legal knowledge, and comprehensive oversight of fideicomiso transactions.
​
As a trusted fideicomiso attorney in Mérida, we work closely with banks, notaries, and government authorities to protect your investment and ensure full legal compliance.
Set Up Your Fideicomiso in Mérida with Confidence
If you are planning to purchase property in Mérida or elsewhere in Yucatán and need to set up a fideicomiso, professional legal guidance is essential. Contact Law Connection Group-Mérida today to speak with an experienced fideicomiso attorney in Mérida and move forward with confidence in your Mexican real estate investment.