In Mexico, a fideicomiso is a trust designed to acquire property. The trust is overseen by a Mexican bank, while the beneficiary, who may also be the creator of the trust, possesses all the privileges and obligations of direct ownership. This grants them the ability to lease, sell, or transfer the property. Typically, a Mexican fideicomiso has a duration of 50 years and can be extended for an additional 50 years.
A fideicomiso is a trust established under Mexican law, allowing non-Mexican individuals to acquire and own property in Mexico. The trust is managed by a Mexican bank as the trustee, with the non-Mexican person as the beneficiary. The property is held in the name of the trust, but the beneficiary has all the rights and responsibilities of direct ownership, including the ability to lease, sell, or devise the property. A Mexican fideicomiso typically lasts for 50 years and can be renewed for an additional 50 years. For instance, if a non-Mexican individual wishes to purchase beachfront property in Mexico, they must establish a fideicomiso with a Mexican bank as the trustee. The bank will hold the property in trust for the beneficiary, who retains all ownership rights. Similarly, a non-Mexican person looking to invest in a Mexican business that owns property can establish a fideicomiso to hold the property in trust for them, granting them the same rights as direct ownership. These examples demonstrate how a fideicomiso can facilitate non-Mexican individuals in acquiring and owning property in Mexico while adhering to Mexican law.
A fideicomiso is a legal arrangement in Mexico that allows foreigners to own property in the restricted zone, which includes areas within 50 kilometers of the coastline or 100 kilometers of the border.
Foreigners who wish to own property in the restricted zone in Mexico, such as beachfront properties or properties near the border, must use a fideicomiso.
Under a fideicomiso, a Mexican bank acts as the trustee and holds the legal title to the property on behalf of the foreign buyer. The buyer, as the beneficiary, has all the rights and privileges of ownership.
A fideicomiso can be established for a maximum initial term of 50 years, with the possibility of renewal for an additional 50 years.
Yes, you can sell or transfer a property held in a fideicomiso. The process involves transferring the beneficial rights to the new owner, who will then become the beneficiary of the fideicomiso.
While there are no restrictions on using a fideicomiso, it is important to comply with all legal requirements and regulations set by the Mexican government.
The costs associated with a fideicomiso include the initial setup fee, annual trustee fees, and any additional fees for services such as property tax management.
Yes, you can rent out a property held in a fideicomiso. However, it is important to comply with local rental regulations and tax obligations.
Yes, a fideicomiso can be used for both residential and commercial properties in the restricted zone.
If a fideicomiso expires, it can be renewed for an additional 50-year term. However, it is important to initiate the renewal process before the expiration date to avoid any complications.
This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.
This glossary post was last updated: 17th April 2024.
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