How Fideicomisos Work: Renewals, Modifications, and Costs
Understanding your bank trust in Mexico
For foreign buyers in Mexico, owning property through a fideicomiso —a bank trust— is a secure and legal mechanism that allows full ownership rights while complying with constitutional restrictions in coastal and border areas. But beyond the initial setup, it’s important to understand how this trust works over time, what happens when it expires, and how to modify or renew it.
What is a fideicomiso?
A fideicomiso is a real estate trust agreement created between three parties:
The Bank (Trustee) – a Mexican financial institution that holds the property title.
The Beneficiary – you, the foreign buyer, who retains all rights to use, sell, lease, or pass on the property.
The Ministry of Foreign Affairs (SRE) – which authorizes the creation of the trust for renewable 50-year periods.
The fideicomiso is not a lease — it’s a form of property ownership recognized by Mexican law.
Renewals: what happens after 50 years
Each fideicomiso is granted for an initial term of 50 years, renewable indefinitely for additional 50-year periods. When that term approaches its end, the trustee bank will notify the beneficiary, who must request the renewal permit from the SRE.
The renewal process generally involves:
Submitting a renewal request through the bank.
Paying the renewal fee to the SRE (approximately USD $1,000–$1,500).
Signing a renewal agreement before a notary public.
Once completed, the new permit is recorded in the Public Registry of Property, extending your ownership rights for another 50 years.
Modifications and transfers
During the life of the trust, it’s common to make modifications such as:
Changing beneficiaries (for inheritance or estate planning).
Transferring the trust to a new buyer.
Switching trustee banks (to negotiate better annual fees or service).
Each modification must be formalized before a notary and registered. Banks usually charge administrative fees for these changes, ranging between USD $300–$700, depending on the institution and complexity of the amendment.
If you sell your property, the fideicomiso can either be assigned to the new buyer or extinguished and replaced with a new trust. Your notary and closing agent will advise which option is most efficient based on the bank’s policies.
Annual fees and maintenance costs
Banks charge an annual maintenance fee for managing the fideicomiso. These fees typically range from USD $500–$800 per year and cover administrative oversight, compliance reporting, and communication with government authorities.
It’s important to keep payments up to date — overdue fees can lead to additional penalties or complications when selling or modifying the trust.
Key takeaways for property owners
The fideicomiso is renewable indefinitely every 50 years.
You can modify, assign, or transfer it through a notary at any time.
Keep your annual fees current and maintain communication with your bank.
If you plan to sell, consult your closing agent early to determine whether a transfer or new trust will be used.
Understanding your fideicomiso ensures that your ownership remains protected and that any future transactions are handled smoothly — keeping your investment secure for generations to come.
Aarón is a born and raised "chilango". After finishing his university studies, what started as a social service trip became his new home and where he started a family in Playa del Carmen. He enjoys the delicious food and culture of the Yucatan peninsula with his wife, daughter, and son. As a professional, he has made a career as a specialist in social networks and electronic media, helping the companies he has worked for to efficiently achieve all their objectives in the medium.