What Is a Fideicomiso and Why You Need One to Buy Property in La Paz & Baja California Sur?
If you’re thinking about investing in real estate in La Paz, Baja California Sur, chances are you’ve come across the term fideicomiso. This legal structure is essential for foreigners who wish to purchase property near the coast or borders in Mexico — including our beautiful seaside city. But what exactly is a fideicomiso, and how does it work?
What is a Fideicomiso?
A fideicomiso is a real estate trust agreement between three parties:
You, the foreign buyer (also called the beneficiary).
A Mexican bank (acting as the trustee).
The seller of the property.
Under this agreement, the Mexican bank holds the title to the property on your behalf, while you retain full rights to use, lease, sell, inherit, or modify the property — just like any owner.
Why is it required in La Paz?
According to the Mexican Constitution, foreigners are not allowed to directly own land within what’s known as the restricted zone — areas within 50 km of the coastline and 100 km of international borders. Since La Paz is located on the Sea of Cortez, it falls within this zone.
The fideicomiso is the legal mechanism that allows foreigners to safely and securely invest in Mexican coastal real estate.
What are the benefits?
✅ Legal security: Fideicomisos are regulated by Mexican law and authorized by the Ministry of Foreign Affairs.
✅ Full control: You can use, rent, sell, or pass on the property as you wish.
✅ Flexibility: You can include beneficiaries and easily renew the trust when the time comes.
What does it cost?
There is a one-time setup fee (varies by bank) and an annual maintenance fee, typically ranging between $400 and $700 USD per year.
How long does it last?
The trust is valid for 50 years, and it can be renewed for another 50 years, indefinitely.
Is it the same as owning property directly?
Legally, yes. While the title is technically held by the bank as trustee, you have all the rights and protections of ownership. The fideicomiso is simply the legal structure that makes it possible for foreigners to hold property in the restricted zone.
Final Thoughts
Buying property in La Paz as a foreigner is not only possible — it’s safe and fully protected by law when done through a fideicomiso. This structure allows you to invest with peace of mind and enjoy everything the Sea of Cortez lifestyle has to offer.
At Global Real Estate, we guide you through the entire process — from finding the right home or lot to signing your fideicomiso with a public notary. Our legal team works closely with the top fiduciary banks in Mexico.
Have questions?
Contact us to schedule a personalized consultation with one of our Mexico Real Estate experts.