Practical GuideReal Estate
Fideicomiso (Mexican trust) in the restricted zone: a guide for foreign buyers of coastal homes
A foreigner cannot hold direct ownership of a house within the fifty-kilometer strip along the beach, but may acquire its rights of use through a bank trust with an SRE (Ministry of Foreign Affairs) permit. What it is, how it is obtained, what it costs, and what it entails.
- Published
- October 14, 2026
- Reading time
- 7 minutes
- Law discussed
- Foreign Investment Law (LIE), Arts. 10 to 14, and its Regulations
- Decision deadline
- 5 business days at the SRE central office (Article 14, LIE)
In this article
In this article
7 min · 8 sections
Non-Mexicans who wish to buy a house or a condo in Playa del Carmen or the Riviera Maya encounter a constitutional rule: within the fifty-kilometer strip along the beaches, foreigners may not acquire direct ownership of land and water. The law offers a regulated mechanism, not a nominee arrangement: the fideicomiso (Mexican trust) for property in the restricted zone, in which a Mexican bank holds title and the buyer receives the rights of use and enjoyment.
The essentials, in thirty seconds
- The Constitution bars foreigners from direct ownership of land and water within one hundred kilometers of the borders and fifty of the beaches (Article 27, Section I). This is the restricted zone; Playa del Carmen lies within it.
- For a home, a foreigner acquires rights through a fideicomiso: a Mexican bank holds title to the property and the buyer, as beneficiary, uses and enjoys it. An SRE permit is required (Articles 10 and 11 of the Foreign Investment Law, LIE).
- The beneficiary may live in and rent out the property (Article 12 of the LIE); the agreement allows assigning rights and naming substitutes (Articles 9 and 11 of the Regulations). It lasts up to 50 years, renewable (Article 13 of the LIE).
- The bank requests the permit; the SRE has five business days to decide an application filed at its central office, or it is deemed approved. The permit is valid for 180 calendar days (Article 14 of the LIE; Article 11 of the Regulations).
- A Mexican company whose bylaws admit foreign shareholders may hold direct ownership in the restricted zone only for non-residential purposes, with notice to the SRE; for a home it must also use the fideicomiso (Article 10 of the LIE).
What the restricted zone is and whom it affects
Article 27, Section I, of the Constitution allows foreigners to acquire land and water if they enter into an agreement with the Secretaría de Relaciones Exteriores (SRE, Mexico's Ministry of Foreign Affairs), except within the coastal and border strip that the Ley de Inversión Extranjera (Foreign Investment Law, LIE) calls the restricted zone (Article 2, Section VI). The entire coast of Quintana Roo lies within it.
NoteCalvo clause
The name given to the agreement under Article 27, Section I: the foreigner agrees to be considered Mexican with respect to the property and not to invoke the protection of their government, under penalty of forfeiting the property to the Nation. In a fideicomiso, the deed includes this agreement with respect to the beneficiary's rights (Article 11, Section I, of the LIE Regulations).
Within a strip of one hundred kilometers along the borders and fifty along the beaches, foreigners may under no circumstances acquire direct ownership of land and water.
Who needs a fideicomiso to acquire a home on the coast
- Foreign individual, whether or not resident in Mexico (Article 11, Section II, of the LIE).
- Foreign legal entity (Article 11, Section II).
- Mexican company with a foreigner-admission clause, if the property will be used as a residence (Articles 10, Section II, and 11, Section I).
- Does not apply: Mexican national, including a dual national, or a Mexican company with a foreigner-exclusion clause: acquires direct ownership (Article 10).
How the fideicomiso works
Its purpose is to allow the use and enjoyment of the property, including its fruits and proceeds, without creating rights in rem (derechos reales) in favor of the beneficiary (Articles 11 and 12 of the LIE). The agreement also allows those rights to be assigned and substitute beneficiaries to be appointed, who receive them upon the holder's death within the limits of Article 394 of the Ley General de Títulos y Operaciones de Crédito, the General Law of Negotiable Instruments and Credit Transactions (Articles 9 and 11 of the Regulations).
| Party | Who it is | What it does |
|---|---|---|
| Settlor (fideicomitente) | The seller | Transfers the property to the trust. |
| Trustee (fiduciaria) | A Mexican bank | Holds title, applies for the permit, and complies with its conditions. |
| Beneficiary (fideicomisario) | The foreign buyer | Uses and enjoys the property and gives instructions to the trustee. |
The SRE permit: deadlines and validity
The bank, through its trust officer (delegado fiduciario), applies for the permit electronically through the SIPAC27 system (Article 11 of the LIE, Article 9 of the Regulations, and a resolution published in the Diario Oficial de la Federación, the Official Gazette of the Federation, on March 16, 2012); the buyer only provides the information. The SRE must decide within five business days if the application is filed at its central office, or within thirty at a regional office; absent a decision, the application is deemed approved (Article 14 of the LIE), unless the SRE first issues a notice requesting missing information, and the corresponding certificate may be requested (Articles 17 and 17-A of the Ley Federal de Procedimiento Administrativo, the Federal Administrative Procedure Law, LFPA). The permit is valid for one hundred eighty calendar days to execute the deed, extendable once (Article 11 of the Regulations).
Steps and documents
- Review the property and its intended use
Verify title, liens, property tax, and land use. Residential use means housing used exclusively by the owner or by third parties; timeshare and simultaneous tourist or commercial use are non-residential (Article 5 of the Regulations).
Deadline: Before placing a deposit
- Choose the trustee bank
Compare at least two banks: acceptance fee, annual fee, and the cost of assignments and of appointing substitute beneficiaries.
- Provide your information
Name and nationality of the buyer and the substitute beneficiaries, and the use and description of the property (Article 9 of the Regulations). The bank and the notary (notario público, a civil-law notary) must identify you: real estate deeds and transfer trusts are a vulnerable activity (Article 17, Section XII, of the LFPIORPI, Mexico's anti-money-laundering law).
- The bank applies for the permit
With proof of payment of the government fee (Article 25, Section V, subsection (a), of the Ley Federal de Derechos, the Federal Fees Law).
Deadline: 5 business days
- Sign the deed
It includes the Article 27 agreement and the conditions of the permit, and it is recorded in the Public Registry of Property.
Deadline: Within 180 calendar days
Fideicomiso or Mexican company?
A Mexican company whose bylaws admit foreign shareholders (foreigner-admission clause) may acquire direct ownership in the restricted zone only for non-residential activities, with notice to the SRE within sixty business days; for residential use, it must also use the fideicomiso (Article 10 of the LIE). For commercial premises, a hotel, or land to be developed, a Mexican company is the natural route; for a house or condo intended as a residence, the fideicomiso.
NoteOutside the restricted zone
Elsewhere in Mexico, a foreigner may hold direct ownership. A national of a country with which Mexico maintains diplomatic relations need only file the written Article 27, Section I, agreement with the SRE (Article 10 A, last paragraph, of the LIE and a General Resolution published in the DOF on March 2, 1998); all others also require a permit.
| Aspect | Fideicomiso | Mexican company |
|---|---|---|
| Use | Residential | Non-residential purposes only |
| Title holder | The trustee bank | The company |
| SRE filing | Prior permit | Notice within sixty business days |
| Ongoing costs and duties | Bank's annual fee | Accounting and corporate obligations |
Costs and obligations during the term of the trust
Ask for each cost separately before signing: the permit fee, which the SRE publishes as MXN 21,650 for 2026 and which is updated every year; the bank's fees and the notary's fees, which vary by institution; and the municipal real estate acquisition tax and registration fees.
The SRE may verify compliance with the conditions of the permit at any time (Article 13 of the LIE). Each April the bank reports on substitute beneficiaries and assignments; it also requests a permit to change the purposes of the trust and gives notice of its termination. If a condition is breached and not corrected within sixty business days after the SRE gives notice, the SRE may require termination of the trust, which the parties undertake to carry out within one hundred eighty days (Article 11 of the Regulations). The extension must be requested within the ninety business days before the agreement expires (Article 12).
Frequently asked questions
Is the bank the owner, leaving me with no rights over the house?
The trustee institution holds formal title to the property because the law requires it, but the beneficiary is the one who uses and enjoys it: the beneficiary may live in it, rent it out, collect its fruits and proceeds, assign the rights, and designate who will receive them upon the beneficiary's death (Articles 11 and 12 of the Foreign Investment Law; Article 9, Section III, and Article 11, Section III, of its Regulations). The bank acts in accordance with the purposes of the agreement and the conditions of the SRE permit.
What happens when the fifty years are up?
The fideicomiso may be extended at the request of the interested party (Article 13 of the LIE). The extension is requested through the trustee within the ninety business days before the agreement terminates and is granted if the conditions of the permit still exist and have been met (Article 12 of the Regulations). It is advisable to note that date from the time of signing.
May I rent out a property acquired through a fideicomiso?
Yes. The rights of use and exploitation that the law grants the beneficiary include use or enjoyment and the collection of fruits, products, and any proceeds from its for-profit exploitation, whether through third parties or through the trustee itself (Article 12 of the LIE). The rental must be consistent with the use stated in the permit: if the property will be used for a tourist or commercial activity, such as an organized vacation rental operation, it is advisable to check beforehand whether a different permit or a change in the purposes of the trust is required (Articles 5, 9, and 11 of the Regulations). Rental income gives rise to tax obligations in Mexico.
May I sell my rights or leave them to my heirs?
You may assign your rights as beneficiary to a third party and designate substitute beneficiaries, who receive them upon your death in accordance with the agreement and within the limits of Article 394 of the Ley General de Títulos y Operaciones de Crédito. The Regulations provide for both arrangements and require the trustee to report them to the SRE in its annual report when the acquirer is a foreigner or a Mexican company with a foreigner-admission clause (Article 9, Section III, and Article 11, Section III). If the acquirer is Mexican, the transaction may fall outside the fideicomiso regime; this should be reviewed case by case.
Would it be better for me to form a Mexican company?
That depends on the intended use of the property. A Mexican company with a foreigner-admission clause may acquire direct ownership in the restricted zone only for non-residential purposes, with notice to the SRE within sixty business days (Article 10, Section I, of the LIE); for residential use, the company must also use the fideicomiso. A company also entails ongoing accounting, tax returns, and corporate obligations.
Official sources
This article was prepared from the texts published by the authorities. We recommend consulting them directly.
- DiputadosConstitución Política de los Estados Unidos Mexicanos, artículo 27, fracción I (Political Constitution of the United Mexican States, Article 27, Section I) (opens the source's website)Article 27, Section I (as amended in the DOF, January 20, 1960). 100 km and 50 km strips; agreement with the SRE.
- DiputadosLey de Inversión Extranjera (Foreign Investment Law) (opens the source's website)Current text; last amended: DOF, May 27, 2024. Articles 2, Section VI; 10; 10 A; 11 to 14.
- DiputadosReglamento de la Ley de Inversión Extranjera y del Registro Nacional de Inversiones Extranjeras (Regulations of the Foreign Investment Law and of the National Registry of Foreign Investments) (opens the source's website)Current text; last amended: DOF, August 17, 2016. Articles 5 to 12 and 14.
- DOFAcuerdo General que determina los supuestos que permiten a los extranjeros únicamente presentar ante la SRE un escrito en el que convengan lo dispuesto por la fracción I del artículo 27 Constitucional (cases in which a written Article 27 agreement suffices) (opens the source's website). Sole article: nationals of countries with diplomatic relations with Mexico; property outside the restricted zone.
- SREPermiso para constitución de fideicomiso sobre inmuebles localizados dentro de la zona restringida (permit to establish a trust over property in the restricted zone; procedure sheet) (opens the source's website). General Directorate of Legal Affairs. Requirements, SIPAC27, contents of the permit, and five-business-day deadline.
- SREAcuerdo por el que se establece el mecanismo mediante el cual los delegados fiduciarios presentan las solicitudes de permisos para fideicomisos en zona restringida (how trust officers file permit applications; DOF, March 16, 2012) (opens the source's website). Trust officers, advanced electronic signature, and SIPAC27; in force ten business days after publication.
- SRECostos y tiempos de los trámites del artículo 27 constitucional (costs and processing times for Article 27 procedures) (opens the source's website). Information in effect from January 1, 2026; permit to establish a trust in the restricted zone: MXN 21,650.00.
- DiputadosLey Federal de Derechos, artículo 25, fracción V, permisos para la constitución de fideicomisos (Federal Fees Law, Article 25, Section V: permits to establish trusts) (opens the source's website)Current text; last amended: DOF, November 7, 2025. Article 25, Section V, subsection (a); fees updated every year.
- DiputadosLey Federal de Procedimiento Administrativo, artículos 17 y 17-A (Federal Administrative Procedure Law, Articles 17 and 17-A) (opens the source's website)Current text; last amended: DOF, November 14, 2025. Certificate of deemed approval; notice to cure (prevención).
- DiputadosLey General de Títulos y Operaciones de Crédito, artículo 394 (General Law of Negotiable Instruments and Credit Transactions, Article 394) (opens the source's website)Current text; last amended: DOF, March 26, 2024. Limit on successive substitutions upon death.
- DiputadosLey Federal para la Prevención e Identificación de Operaciones con Recursos de Procedencia Ilícita, artículo 17 (Federal Law for the Prevention and Identification of Transactions Involving Illicit Proceeds, Article 17) (opens the source's website)Current text; last amended: DOF, July 16, 2025. Section XII, Part A, subsections (a) and (d).
Learn about the firm's Real Estate practice →More publications on Real Estate →
TopicsForeign investment · Fideicomiso · Restricted zone · Article 27 of the Constitution · SRE · Foreign buyers · Riviera Maya
