For Canadians and Americans exploring the idea of buying a home in Mexico, one of the first and most important topics to understand is the legal framework for foreign ownership. The good news is that it’s entirely possible — in fact, thousands of foreigners successfully purchase property in Mexico each year. Still, like many aspects of international real estate, the process comes with some important nuances. Gaining clarity on these early on can help you move forward with confidence and avoid unnecessary surprises.
What Is the “Restricted Zone”?
Mexico’s Constitution includes a clause that protects national sovereignty over areas considered strategically sensitive. As a result, foreign nationals are not permitted to hold direct title to land located within what’s known as the Restricted Zone. This area includes all land within 50 kilometers (approximately 30 miles) of the coastline and 100 kilometers (about 60 miles) of Mexico’s international borders.
This means that many of Mexico’s most popular destinations including Tulum, Playa del Carmen, Puerto Vallarta, Los Cabos, Mazatlán, and border cities like Tijuana fall within the Restricted Zone.
However, this does not mean you can’t own property there. Mexico has developed a legal, secure, and well-established mechanism that enables foreigners to enjoy full property rights in these areas. That solution is called a fideicomiso a type of trust agreement explicitly created for foreign ownership.
What Is a Fideicomiso?
A fideicomiso (pronounced fee-day-co-mee-so) is a 50-year renewable real estate trust established between a foreign buyer and a Mexican bank. The structure is approved and overseen by Mexico’s Ministry of Foreign Affairs.
As the buyer, you are listed as the primary beneficiary of the trust. This grants you all the legal rights of ownership, allowing you to use the property, renovate it, lease it out, sell it, or pass it on to your heirs. The bank, which serves as the trustee, holds legal title to the property on your behalf, but it cannot occupy, use, or control the property in any way. It acts purely as a custodian to comply with constitutional regulations.
In essence, the fideicomiso allows foreigners to enjoy the same rights as direct ownership while still adhering to Mexico’s legal framework. It’s a long-standing and widely used solution that has enabled countless international buyers to own property in Mexico’s most desirable coastal areas safely.
Are There Other Ways for Foreigners to Own Property?
Yes, there are. Some buyers choose to acquire property through a Mexican corporation, which is another legal pathway to ownership. This method is more commonly used for commercial or investment properties and may allow for direct title without the need for a fideicomiso.
However, purchasing through a corporation is more complex, carries additional legal and tax responsibilities, and is often less ideal for buyers who are simply looking to own a vacation home or residence. At SoBankable, we help you evaluate all your options and select the ownership structure that best aligns with your financial goals, property type, and long-term plans.
Is Buying Through a Trust Safe?
Yes, absolutely. The fideicomiso system has been in place for decades and is frequently used by Canadians, Americans, and other international buyers purchasing real estate in Mexico. When set up correctly through a licensed bank and reviewed by a trusted notary, the fideicomiso offers a secure and fully legal method of ownership.
Final Thoughts: Foreigners Can Own Property in Mexico Safely and Legally
Owning a home in Mexico as a foreigner is possible and increasingly common. With the proper guidance, it’s also secure, transparent, and well-supported by the legal system. The key is working with a mortgage lender and legal team that understands the nuances of cross-border ownership and can walk you through the process with confidence.
At SoBankable, we specialize in simplifying international homeownership. From helping you secure the appropriate trust structure to coordinating title review and financing, we work alongside trusted professionals to make sure everything is handled properly — so you can focus on enjoying your new property.
Thinking of buying in Mexico’s Restricted Zone?
We’ll help you understand your options and guide you through the fideicomiso process from start to finish.
Apply online today or book a consultation with a SoBankable advisor to learn more about how financing can support your international real estate plans.