Fideicomisos The Restricted Zone Trust

FIDEICOMISO 

In Mexico,  Do foreigners own the properties?

Fideicomisos The Restricted Zone Trus It is the means for all foreigners interested in investing in real estate in Mexico in the so-called Restricted Zone.

“Fideicomiso” is a Spanish term that refers to a trust agreement or trust fund. In a fideicomiso, a person or entity (known as the “trustee”) holds property or assets for the benefit of another person or entity (known as the “beneficiary”). The trustee has a legal obligation to manage and protect the assets in accordance with the terms of the  trust agreement and for the benefit of the beneficiary.

México 

Fideicomisos are commonly used in Mexico for real estate transactions, where the property is held in trust for a foreign buyer by a Mexican bank acting as trustee. This allows the foreign buyer to legally own the property without the need for a Mexican citizenship or corporation.

Legal Foundation of the Trust
ARTICLE
27 CONSTITUTIONAL

Only Mexicans by birth or by naturalization and Mexican societies have right to acquire ownership of land, water and their accessions or to obtain concessions of exploitation of mines or waters The State may
grant the same right to foreigners, provided that agree before the Secretary of Relations in considered as nationals with respect to said property and in not invoking, for the same reason, the protection of their governments as regards those under the penalty, in case of breaching the agreement, of losing benefit of the Nation, the assets that may have acquired by virtue thereof In a band of one hundred kilometers along the borders and fifty on the beaches, for no reason may foreigners acquire direct domain over lands and waters

How can a foreigner obtain a property ? Definition of the Restricted Zone Trust ZR

The contract that allows foreigners to acquire the use and enjoyment of a property located in the restricted area, while the trustee retains ownership of the property. The Trustee is legally the owner, but the foreigner is the beneficiary of the use and enjoyment of the property

Articles 10 to 14 of the Foreign Investment  México´s Law

The Restricted Zone Trust is made up of mainly 3 elements
Basic concepts

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