Restricted Zone Real Estate Trust Mexico (Fideicomiso Zona Restringida)

A Restricted Zone Real Estate Trust Mexico (Fideicomiso para Adquisición de Inmuebles en Zona Restringida) is a trust structure governed by Article 11 of the Ley de Inversión Extranjera (LIE) and Articles 381 through 414 of the Ley General de Títulos y Operaciones de Crédito (LGTOC), published in the Diario Oficial de la Federación. This legal mechanism allows foreign nationals (personas físicas extranjeras) and foreign corporations (personas morales extranjeras) to acquire the rights to use, enjoy, and dispose of residential and commercial real property located within Mexico's zona restringida — the 50-kilometre coastal strip (franja costera) and the 100-kilometre border zone (franja fronteriza) — without violating Article 27 of the Constitución Política de los Estados Unidos Mexicanos, which reserves direct ownership of land in those zones to Mexican nationals and the Mexican State.

The Fideicomiso Zona Restringida is one of the most important legal instruments in Mexican real estate law for cross-border transactions. The structure involves three essential parties: the fideicomitente (trustor/settlor), who is the foreign national or entity that contributes the property or funds to acquire it; the fiduciario (trustee), which must be a Mexican banking institution authorised by the Secretaría de Hacienda y Crédito Público (SHCP) and registered with the Comisión Nacional Bancaria y de Valores (CNBV) to act as institutional trustee; and the fideicomisario (beneficiary), who is typically the same foreign national and who holds all beneficial rights to use, occupy, lease, improve, and ultimately instruct the trustee to sell or transfer the property.

Article 11 LIE establishes that foreign nationals may acquire rights over real property in the zona restringida only through a fideicomiso authorised by the Secretaría de Relaciones Exteriores (SRE). The Reglamento de la Ley de Inversión Extranjera, published in the DOF, specifies the technical requirements for the authorisation, including the minimum trust term of 50 years (renewable), the prohibition on acquiring more than 50% of the land in a single condominio or development, and the mandatory use of an authorised Mexican fiduciario. The SRE issues the permiso para adquisición de derechos sobre bienes inmuebles en zona restringida, which is a prerequisite for executing the trust deed (escritura fiduciaria).

The LGTOC Articles 381 through 414 establish the general legal framework for fideicomisos in Mexico, defining the trust as a legal act by which the fideicomitente transfers specific assets (bienes ciertos) to the fiduciario for a lawful and determined purpose (fin lícito y determinado). Article 395 LGTOC lists the acts that a fiduciario may perform in relation to real property held in trust, including entering into lease agreements (contratos de arrendamiento), granting easements (servidumbres), and authorising construction on trust property. Article 394 LGTOC establishes that the trust patrimony (patrimonio fiduciario) is separate from the assets of both the fideicomitente and the fiduciario, providing asset protection to the foreign beneficiary.

From a tax perspective, the Fideicomiso Zona Restringida is treated as transparent for Mexican income tax purposes under Article 13 of the Ley del Impuesto sobre la Renta (LISR). The foreign beneficiary is treated as the direct owner of the trust property for ISR purposes and must report rental income, capital gains, and any other income generated by the trust property through the fiduciario as retaining agent (retenedor). The Impuesto sobre la Adquisición de Inmuebles (ISAI) — typically 2% of the property value — is payable by the fideicomisario (beneficiary) upon acquisition of the trust rights, identical to a direct purchase. Annual property tax (predial) assessed by the municipal authority (Ayuntamiento) is also the responsibility of the fideicomisario, typically paid through the fiduciario as part of the trust's annual administration.

A Restricted Zone Real Estate Trust Mexico is required whenever a foreign national or foreign corporation seeks to acquire rights over real property situated in Mexico's zona restringida — the 50-kilometre coastal strip measured from the high-tide line (línea de más alta marea) on both Pacific and Gulf/Caribbean coasts, and the 100-kilometre border zone measured from the international boundary with the United States, Guatemala, and Belize. These zones cover some of Mexico's most valuable real estate markets, including Los Cabos, Puerto Vallarta, Cancún, Playa del Carmen, Riviera Maya, Ensenada, Rosarito, Mazatlán, Manzanillo, and all border cities such as Tijuana, Ciudad Juárez, Monterrey (partially), Mexicali, and Nuevo Laredo.

The fideicomiso is needed when a US, Canadian, European, or other foreign national purchases a vacation home, beachfront property, or residential development unit in a coastal resort area. Without the fideicomiso structure, the foreign national cannot legally acquire any rights over the property and the notario público would be prohibited from registering the transaction with the Registro Público de la Propiedad y Comercio.

The trust is also required when a foreign corporation acquires commercial real estate, warehouse space, or industrial property in border zone cities for manufacturing, maquiladora operations, or logistics purposes. Foreign companies operating under the IMMEX Programme (Programa de la Industria Manufacturera, Maquiladora y de Servicios de Exportación) authorised by the Secretaría de Economía frequently use fideicomisos to hold title to industrial facilities in border cities.

The fideicomiso is necessary when a foreign national inherits real property in the zona restringida from a Mexican or foreign decedent — the inheritance must be restructured as a fideicomiso if the heir is a foreigner, requiring a new SRE permit and trust deed. The Código Civil Federal and the rules of succession in the relevant state's Código Civil apply to the underlying inheritance, but the resulting property rights of a foreign heir in the restricted zone must be channelled through the trust.

Under LIE Article 11, Reglamento de la LIE Article 16, LGTOC Articles 381–414, and applicable SRE administrative rules, every fideicomiso zona restringida must be executed before a Notario Público in the state where the property is located, authorised by the SRE, registered with the Registro Público de la Propiedad y Comercio del municipio or delegación where the property is situated, and reported to the SAT for tax transparency purposes.

A valid Restricted Zone Real Estate Trust Mexico under LIE Article 11 and LGTOC Articles 381–414 must include the following essential elements:

SRE Permit Reference: The trust deed must reference the Permiso de la Secretaría de Relaciones Exteriores (SRE) number authorising the acquisition of trust rights by the foreign national, issued pursuant to LIE Article 11 and the Reglamento de la LIE. The SRE permit specifies the property, the beneficiary's nationality, and the authorised trust purpose. Without the SRE permit, the notario público cannot execute the escritura fiduciaria.

Authorised Fiduciario: The trustee (fiduciario) must be a Mexican banking institution (institución de crédito) authorised by the SHCP and CNBV to act as institutional trustee. Banks authorised for this purpose include BBVA México, Banamex (Citibanamex), Banorte, HSBC México, Scotiabank México, and Banco Actinver, among others. The fiduciario's CNBV registration number and official name must appear in the trust deed.

Property Description (Descripción del Inmueble): A complete legal description (descripción técnica legal) of the property, including folio real number (número de folio real or matrícula inmobiliaria) from the Registro Público de la Propiedad, cadastral key (clave catastral) from the Catastro Municipal, surface area in square metres, location, boundaries (linderos), and any registered easements (servidumbres) or liens (gravámenes) as shown in the Certificado de Libertad de Gravamen issued by the Registro Público.

Trust Term (Plazo del Fideicomiso): The trust term under LIE Article 11 is a maximum of 50 years (cincuenta años), renewable for additional 50-year periods upon application to the SRE. The trust deed must state the commencement date and expiration date. Upon expiration without renewal, the fiduciario is obligated to sell the property and deliver the proceeds to the beneficiary, or transfer the rights to a qualified assignee.

Beneficiary Rights (Derechos del Fideicomisario): The trust deed must enumerate the beneficiary's rights under LGTOC Articles 395 and 396, including: the right to use and occupy (derecho de uso y goce) the property; the right to lease the property to third parties and collect rents; the right to make improvements and constructions subject to municipal building permits (licencias de construcción); the right to mortgage or pledge the trust rights (hipoteca del derecho fiduciario) to secure financing; and the right to instruct the fiduciario to sell or assign the trust rights to a qualified buyer.

Successor Beneficiary (Fideicomisario Sustituto): The designation of a substitute beneficiary (fideicomisario sustituto) who receives the trust rights in the event of the primary beneficiary's death, pursuant to LGTOC Article 382. This functions as a testamentary designation for the trust property independent of the beneficiary's will (testamento) or intestate succession rules under the applicable Código Civil Estatal.

Fiduciario Fees and Expenses: The annual administration fee (comisión fiduciaria anual) charged by the banking trustee, typically ranging from USD 500 to USD 1,500 per year depending on the bank and property value, plus the costs of property tax (predial) payments, insurance, and legal compliance acts that the fiduciario performs on behalf of the beneficiary. These obligations must be clearly stated in the trust deed.

Notarial Execution and Registration: The fideicomiso must be executed before a Notario Público del Estado where the property is located, entered into the Protocolo Notarial, and registered with the Registro Público de la Propiedad y Comercio of the relevant municipality. ISAI (Impuesto sobre Adquisición de Inmuebles) is payable at registration. The Notaría Pública also reports the transaction to the SAT under anti-money-laundering obligations pursuant to the Ley Federal para la Prevención e Identificación de Operaciones con Recursos de Procedencia Ilícita (LFPIORPI) — commonly known as the Ley Antilavado.

Forms-legal.com provides this Restricted Zone Real Estate Trust Mexico template as a reference document. Every fideicomiso zona restringida involves significant legal, tax, and regulatory requirements and must be prepared and executed by a Notario Público licenciado with expertise in zona restringida transactions. Foreign buyers should also obtain independent legal advice from a Licenciado en Derecho specialised in real estate and foreign investment law before signing any purchase agreement (contrato de compraventa) or trust deed.