Buying a place near the powder‑soft beaches of Cancún should feel exciting, not confusing. If you are a U.S. or Canadian buyer, you have likely heard you need a fideicomiso to own property near the coast. You want to know what it is, what it costs, and how safe it is. In this guide, you will learn exactly how the fideicomiso works in Cancún, what rights you have, key fees and timelines, and who does what at closing. Let’s dive in.
Fideicomiso basics in Cancún
A fideicomiso is a Mexican bank trust that allows you, as a non‑Mexican national, to hold and control coastal real estate. The legal title appears in the name of a Mexican bank as trustee, while you are the trust’s beneficiary. This structure comes from Mexico’s legal framework that limits direct foreign ownership in certain areas. The trust is designed so you enjoy the practical rights of ownership for residential and vacation use.
In simple terms, the bank holds title for you and must follow the trust deed. You enjoy the property, can sell your beneficial interest, and can name heirs as successor beneficiaries.
Why Cancún uses a bank trust
Mexican law defines a coastal “restricted zone” where foreign buyers do not hold title directly. Cancún falls within this coastal zone. The fideicomiso is the standard way to buy residential property there as a foreigner. Because boundaries and administrative practice can evolve, you should confirm the status of a specific parcel with the Notario and the local Public Registry before you proceed.
Who is involved
Trustee bank
A Mexican bank acts as trustee. It appears on title records as owner only to carry out the trust terms, collect fees, record amendments, and help with renewals.
Beneficiary (you)
You are the beneficiary who enjoys the property’s economic benefits and rights defined in the trust deed, similar to an owner for residential purposes.
Notario Público
A Notario is a senior Mexican attorney and public official who prepares the public deed, oversees legality, calculates and collects taxes, performs due diligence, and registers the trust and transfer.
Settlor/trustor
This is the party that establishes the trust during the sale. In a typical purchase, the trust is created as part of your closing process.
Your rights as beneficiary
With a fideicomiso you can:
- Use and possess the property, live in it, and rent it for vacation stays if allowed by local rules and your HOA.
- Remodel within local and HOA rules.
- Sell or transfer your beneficial interest, following the procedures with the bank and Notario.
- Mortgage the property if a lender offers a loan that uses the trust as collateral.
- Name successor beneficiaries so your heirs can receive the rights.
For most residential purposes, these rights mirror direct ownership.
Term and renewal
Most fideicomisos are set for 50 years and are renewable. Renewal is a standard administrative process handled with your trustee bank and a Notario. Confirm the exact renewal steps, timing, and fees with the bank because procedures can vary.
Setup steps and timeline
Here is how a typical Cancún purchase with a fideicomiso comes together:
- Property due diligence
- The Notario performs a title search, checks for liens, verifies boundaries, and confirms taxes and assessments are current.
- Preliminary agreement and deposit
- Buyer and seller sign a preliminary sale agreement and arrange escrow or a deposit as agreed.
- Choose a trustee bank
- You select the bank that will act as trustee. The bank gathers KYC documents and coordinates trust terms with the Notario.
- Sign the trust deed
- The Notario drafts the public deed that includes the trust. You sign before the Notario. The bank becomes trustee. You are named the beneficiary and can add successor beneficiaries.
- Registration and filings
- The Notario records the deed in the Public Registry and handles required filings and taxes.
- Close and fund
- The seller receives funds. You receive copies of the deed and trustee instructions for annual fees.
Typical timing for a straightforward deal is about 3 to 8 weeks from preliminary agreement to closing. Bank and Notario workload, financing, and document complexity can speed up or extend this range.
Documents you will need
- Valid passport.
- Proof of current address outside Mexico.
- Power of attorney if someone signs for you. If signed abroad, it must follow apostille or consular requirements.
- Bank KYC documents. Some banks request a Mexican tax ID (RFC) in certain cases. The Notario or bank will advise.
- If buying through a company, corporate formation documents and evidence of signing authority.
Costs to expect in Cancún
Actual figures vary by bank, Notario, municipality, and property value. Ask for a written itemized quote for your specific deal. Common ranges include:
- Bank trust setup fee: about USD 750 to 3,000, depending on the bank and property specifics.
- Annual trustee fee: about USD 300 to 1,200 per year.
- Notario fees: often 0.5% to 2% of the purchase price, depending on local scales and complexity.
- Registration and filing fees: generally modest compared to taxes and notary fees.
- Transfer tax: a one‑time municipal or state tax that varies by location. Request an exact quote for Cancún.
- IVA (VAT): may apply in certain commercial or new‑construction scenarios. Many residential resales are not subject, but this depends on the transaction.
- Mortgage costs if financing in Mexico: appraisal, origination, bank administration, and adjusted notary procedures.
As a rough ballpark, total closing costs for a vacation‑home purchase in Cancún often range from 3% to 7% of the price before any mortgage‑related costs. Always verify the breakdown with your Notario and trustee bank.
Bank and Notario roles
- Trustee bank: Holds legal title, administers the trust, records amendments and beneficiary transfers, collects annual fees, and may offer mortgages using the trust as collateral. The bank performs KYC and anti‑money‑laundering checks.
- Notario Público: Oversees legal certainty, drafts and authenticates the deed, performs due diligence, calculates and pays taxes and duties, and registers the trust and transfer with the Public Registry.
These two parties coordinate closely with you and the seller. The Notario handles most filings and tax payments. The bank administers the trust during and after closing.
Practical tips for buyers
- Confirm restricted‑zone status: Have the Notario confirm the parcel’s classification and local registry details.
- Ask for itemized estimates: Request a written quote from the Notario and trustee bank that lists all fees, taxes, and third‑party costs.
- Plan for annual bank fees: Budget the trustee’s yearly administration cost and any amendment fees.
- Check HOA and rental rules: Verify condominium bylaws, gated‑community rules, and local short‑term rental requirements in Cancún.
- Consider financing options: Compare Mexican bank mortgages tied to the fideicomiso with financing in your home country.
- Plan succession: Name successor beneficiaries in the trust and coordinate cross‑border estate planning with advisors in both countries.
- Understand tax reporting: Income and capital gains on Mexican property can have tax effects in Mexico and your home country. Consult a cross‑border tax advisor.
Alternatives to a fideicomiso
- Mexican corporation: Foreigners can form a Mexican company to buy property, including in the restricted zone. This is often used for commercial activity, multiple investment properties, or operating businesses. It adds compliance and administrative complexity that many individual vacation‑home buyers do not need.
- Direct ownership outside the zone: If a property is outside the restricted zone, foreign buyers may hold title directly. Always confirm a parcel’s status with the Notario.
How we help in Cancún
Buying cross‑border should be clear and efficient. As a boutique, licensed team focused on the Riviera Maya, we pair local market expertise with a tech‑enabled process to guide you from shortlist to closing. We curate beachfront condos, villas, presales, and rental‑ready options, and we provide investor‑minded context when you care about returns. We coordinate with trusted Notarios and trustee banks in Cancún so you get accurate timelines, fee quotes, and a smooth fideicomiso setup.
If you want clarity on inventory, costs, and the trust steps for your specific purchase, connect with us at Riviera Maya Homes. We will help you plan the right path and move forward with confidence.
FAQs
Is a fideicomiso safe for foreign buyers in Cancún?
- Yes. It is a long‑standing, regulated mechanism. Choose a reputable trustee bank and an experienced Notario, and complete standard due diligence.
How long does a fideicomiso last and can I renew it?
- The typical term is 50 years and it is renewable. Confirm renewal procedures and fees with your trustee bank.
What rights do I have under a fideicomiso in Cancún?
- You can use the property, rent it within local and HOA rules, remodel, sell or transfer your beneficial interest, mortgage it, and name successor beneficiaries.
How long does the Cancún closing process usually take?
- Many straightforward transactions close within about 3 to 8 weeks, depending on due diligence, bank and Notario workload, and whether you use financing.
What does the fideicomiso cost to set up and maintain?
- Typical setup fees range about USD 750 to 3,000, with annual trustee fees around USD 300 to 1,200, plus notary, tax, and registration costs.
Can I get a mortgage in Mexico with a fideicomiso?
- Yes. Many Mexican banks lend to foreigners using the trust as collateral. Terms and requirements vary.
Can I pass the property to my heirs through the fideicomiso?
- Yes. You can name successor beneficiaries in the trust so your heirs receive the rights, subject to standard Mexican procedures.
