Bienes Raíces en Playa Del Carmen y Tulum Mexico | Fideicomiso vs Mexican Corporation: Which to Use in Mexico

Fideicomiso vs. Mexican Corporation for Coastal Zone Property: When Each Structure Makes Sense

If you’re a foreign buyer purchasing near the coastline, you’ll usually hear one of two options:

1. Fideicomiso (bank trust)

2. Mexican corporation (typically an S.A. de C.V. or S. de R.L. de C.V.)

Both can work. The “best” one depends on your priorities: personal use, rental operations, future resale, inheritance planning, compliance tolerance, and how hands-on you want to be.

This guide is meant to help you choose the right structure before you commit—so you don’t end up rebuilding your ownership setup later.

First, what is the restricted zone?

Mexico restricts direct foreign ownership of residential real estate within certain distances of the coast and borders. In practice for Riviera Maya buyers, that typically means you’ll use a fideicomiso for personal residential ownership, or a Mexican company in certain scenarios.

(Your notary will confirm whether the property is in the restricted zone and what structure applies.)

Option 1: Fideicomiso (Bank Trust)

A fideicomiso is a legal arrangement where a Mexican bank acts as trustee and holds title, while you (the beneficiary) retain the rights to use, enjoy, lease, improve, and sell the property.

Best for

• Lifestyle + investment buyers (some personal use + rentals)

• Buyers who want simpler ongoing compliance

• Buyers who want a structure that is widely understood in coastal closings

• Buyers who prioritize a clean “one asset” ownership approach

Practical advantages

• Often the most straightforward path for foreign individuals

• Usually lighter ongoing administration than running a company

• Familiar structure for resale (especially in resort markets)

Considerations

• There are bank fees (setup and annual) and trust administration

• The bank is involved as trustee (administrative step, not day-to-day control)

• If you want to run a business with multiple properties and formal operations, a trust may not be the most scalable tool

Option 2: Mexican Corporation (Company Ownership)

A Mexican corporation owns the property and you own shares/quotas in the company. This is sometimes used when the property is clearly tied to a business model (multiple assets, formal operations, partners, etc.).

Best for

• Buyers who plan to operate multiple properties under a single structure

• Investors with partners or a more complex capitalization plan

• Owners who want a “platform” that can expand (staff, contracts, commercial activity, more assets)

Practical advantages

• Can be useful for structured operations and scaling

• Ownership transfer can be structured via share transfer (depending on the specific case and documents)

• Fits certain investor profiles that already operate with corporate governance

Considerations

• You’re taking on corporate compliance: bookkeeping/accounting, annual obligations, corporate books, governance steps

• If it’s only one condo and you’re not truly operating a business, a company can be “too much structure”

• You’ll want tax guidance early to align the company’s activity with your rental plan and reporting needs

How to choose: the decision framework we use

Here’s a practical way to decide, based on real client scenarios.

Choose a Fideicomiso if:

• You want to use the property personally (even part-time)

• You want simple ownership that is common in coastal transactions

• You will rent the property, but your main goal is not to build a multi-asset business

• You want fewer moving pieces and lower administrative overhead

Consider a Mexican Corporation if:

• You’re building a portfolio (more than one property) or planning to

• There will be multiple investors/partners

• You need a formal structure for contracts, operations, staff, or growth

• You’re comfortable with ongoing corporate compliance and accounting

The common mistake: choosing based on “what someone heard”

Two myths cause problems:

Myth 1: “A corporation is always better for taxes.”

Tax outcomes depend on your facts and compliance. A company is not a magic tax switch—it’s a legal vehicle with responsibilities.

Myth 2: “A fideicomiso means the bank owns my property.”

The bank holds title as trustee, but you retain beneficiary rights to use, lease, improve, and sell—your legal control is real, just structured.

What to ask before you choose (quick checklist)

Before you pick a structure, answer these questions:

1. Will you use the property personally (even occasionally)?

2. Is this a one-property purchase or a portfolio plan?

3. Are there partners or future investors involved?

4. How important is a clean resale path in the next 3–7 years?

5. Do you want to keep administration minimal, or are you comfortable with ongoing corporate obligations?

6. Are you renting casually, or operating with a business mindset (contracts, staff, multiple units)?

If you can answer those clearly, the “right” structure usually becomes obvious.

For many foreign buyers purchasing a single condo or home near the coast, a fideicomiso is the simplest and most common ownership structure.

A Mexican corporation can make sense when the property is part of a broader investment platform—especially if there are partners, multiple assets, or a formal operating plan.

Choosing correctly upfront protects you from future restructuring costs and avoids compliance surprises.