The Fideicomiso, 1 great option for foreigners 1/3
Purpose of a Fideicomiso
The fideicomiso is a Mexican trust, which provides a secure legal form of ownership for foreign investors who wish to buy property in Mexico. It is a popular way for foreign nationals to purchase real estate in Mexico and enjoy the benefits of home ownership without having to go through the lengthy and costly process of obtaining a visa or permit.
In this blog post, we will provide an overview of the fideicomiso and explain why it is so beneficial for foreign investors.
Why the fideicomiso ?
It is a legal arrangement in which one party (the trustee) holds assets on behalf of another party (the beneficiary). The trustee has a fiduciary duty to manage the assets in accordance with the terms of the trust agreement.
It is a common tool used in estate planning, particularly for foreign investors who wish to purchase property 50 km from the coast and 100 km from the border in Mexico. Under Mexican law, foreigners are not permitted to directly own certain types of property, such as beachfront property. However, they can use a fideicomiso to circumvent this restriction.
Advantages of the Fideicomiso
It has many benefits for both the investor and the beneficiary. For the investor, it provides a high degree of asset protection. The trustee is legally responsible for managing the property and ensuring that it is properly maintained. The beneficiary also has certain protections under Mexican law, such as the right to live in the property and the right to sell or transfer it.
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With a fideisomiso, the property will be elusive and an heir will be named in the event that. The validity of the fideicomiso is 50 years renewable.
There are some important things to know about it, before entering into one. First, the fideicomiso must be registered with the Mexican government. Second, the bank that oversees it will charge fees for its services : file opening and annual maintenance fees
How to make the transaction ?
To carry out this transaction, 3 parties are necessary: the real estate agent, the bank and the notary.
All of them have a specific role in this transaction. This is why having the right people on your side is so important.
Buy a real estate through a fideicomiso, a convenient operation 2/3
