What Is a Fideicomiso? A US Buyer’s Guide to Owning Property in Los Cabos

Why do foreign buyers need a fideicomiso?

Mexico’s constitution restricts direct foreign ownership of land within a “restricted zone” — broadly, land near the coast and the national borders. Because Los Cabos sits on the coast, this zone applies here.

Rather than barring foreign buyers, Mexican law created the fideicomiso decades ago as the mechanism that lets foreigners hold full beneficial ownership of property in this zone. A Mexican bank holds the legal title in trust, while you — the beneficiary — hold all the rights of ownership.

It’s worth being clear about what this is and isn’t: it is not a lease, and it is not a loophole. It’s the established, government-sanctioned structure for foreign ownership, used by a large share of the American and Canadian owners across Los Cabos.

What rights does the trust actually give you?

As the beneficiary of the fideicomiso, you have the right to use, lease, improve, mortgage, sell, and bequeath the property. The bank’s role is administrative — it holds title and acts on your instructions; it cannot sell or encumber the property on its own.

If you sell, you can sell to anyone — including another foreigner (who takes over or establishes their own trust) or a Mexican national (who can take direct title). You can also name substitute beneficiaries, which is how the trust passes to heirs without the property going through probate.

How long does a fideicomiso last?

A fideicomiso is established for a term of 50 years and is renewable. Renewal is a routine administrative step, and the trust can be renewed for additional terms, so ownership is effectively perpetual in practical terms.

⚑ Brent to confirm — Add a sentence on how/when renewal is handled in practice and roughly what it involves, from your experience walking clients through it.

What does setting up a fideicomiso involve?

At a high level: once you’re under contract, a Mexican notary (a specialized, government-appointed legal officer) oversees the transaction, the trust is established with a Mexican bank as trustee, and title is transferred into the trust. A permit from the Ministry of Foreign Affairs is part of the process.

From an accepted offer, expect roughly 60 to 90 days to close, and the trust is usually what sets that pace. When you buy from another foreign owner, their fideicomiso typically has to be dissolved and a fresh one established in your name, which can add around 45 days. (A sale between Mexican nationals that passes escritura to escritura — deed to deed — can close in as little as one to two weeks.) The step that surprises buyers most is exactly this: it’s the trust setup, not the negotiation, that drives the calendar. If you need to be in sooner, a “soft closing” can sometimes bridge the gap.

What does a fideicomiso cost?

There are two cost elements buyers ask about: a one-time setup cost to establish the trust, and a recurring annual fee paid to the trustee bank to administer it. These are separate from the general closing costs of the purchase.

Setting up the trust runs about $2,000 USD — roughly $1,500 for the setup itself, with the first year’s trust fee (around $500) included. After that, the annual fee to the trustee bank is approximately $500 USD, and the trust is held at a local Mexican bank here in Cabo. The term is 50 years. If you’re buying from another foreign owner, you can sometimes assume their existing trust rather than establish a new one. Exact figures vary by bank and by the value of the property.

See all buying costs in detail →

Is owning through a fideicomiso safe?

For the large community of US and Canadian owners in Los Cabos, the fideicomiso is a well-understood, stable structure backed by Mexican law. The protections come from working with the right professionals — a reputable trustee bank, a qualified notary, and an experienced agent who has guided many foreign buyers through the same process.

The most common mistakes happen when buyers try to shortcut the structure (for example, buying informally in someone else’s name). The fideicomiso exists precisely so you don’t have to — it’s the safe, recognized way to hold title.