Bank trust or Mexican company: choosing how to hold title
In the restricted zone (within 50 km of the coast, which covers nearly all of BCS), foreigners hold residential property through a bank trust (fideicomiso). A Mexican company with foreign shareholders can own property directly, but it's meant for business use and carries accounting and tax filings.
Why it matters
The choice affects yearly costs, taxes on rent and sale, inheritance, and the paperwork you must keep up.
Who helps
Your attorney and a Mexican accountant (contador) compare both for your situation; the notario formalizes the choice.
Documents
- Passports and proof of address
- For a company: incorporation deed, name permit, RFC and an accountant engagement
Costs Estimate
- Trust: setup fee plus annual fee, often from several hundred to over US$1,000 per year (estimate).
- Company: incorporation plus monthly accounting, often several thousand US$ per year (estimate).
Estimates only. Get written quotes.
Common mistakes
- Using a company for a personal home only to avoid trust fees; tax authorities may challenge it.
- Letting a company go dormant without filings, which creates penalties.
Say it in Spanish
- ¿Cuáles son los costos anuales de un fideicomiso comparado con una sociedad?
What are the yearly costs of a trust compared with a company?
Terms
Confirm the details for your case with your notario or attorney.
Common questions
Should I use a Mexican company instead of a trust?
A company is meant for business use and has monthly accounting and tax filings. For a personal home, most buyers use a trust. Compare both with an attorney and an accountant.