Other structures you'll be offered: lease, Mexican company, front person
Alternatives to a bank trust that sellers and promoters sometimes offer, especially on beachfront or ejido-area land.
Why it matters
Each gives you different rights. Only the trust (for a home) and a properly registered Mexican company (for a business) give you a recorded, insurable interest in the restricted zone.
Who helps
Your own attorney.
Mexican company
may own restricted-zone land directly only for non-residential activities (for example a hotel, commercial rental business or development) and must notify the SRE within 60 business days of each acquisition (LIE art. 10; SRE procedure). It needs a Mexican accountant, monthly and annual tax filings and corporate books. It's usually the wrong tool for a personal home.
Land lease
you pay rent for use of someone else's land and may build on it. When the lease ends, improvements usually stay with the landowner unless the contract says otherwise. Lenders and insurers often won't cover leased land.
- **Front person (prestanombres):** a Mexican friend or employee holds title "for you." You have no recorded rights; if they die, divorce, owe debts or change their mind, you can lose the property. Avoid.
Common mistakes
- "99-year leases"; leases of ejido land sold as ownership; corporations used for a personal home to "save the trust fee.".
Say it in Spanish
- ¿Es un arrendamiento o un fideicomiso?
Is this a lease or a trust? - ¿Quién será el titular y dónde está inscrito?
Who will hold title, and where is it recorded?
Terms
Sources
- Ley de Inversión Extranjera (Diputados) (checked 2026-10)
- SRE – company acquisition notice (checked 2026-10)
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.