Fideicomiso vs Mexican Corporation – Which Structure Should Foreign Buyers Use?
If you’re planning to buy a beachfront condo or villa in Mexico, you’ve probably heard about the “Fideicomiso.” But some people also mention forming a Mexican corporation. Which one is better for you?
This guide explains the key differences between the Fideicomiso in Mexico and a Mexican corporation, so you can choose the safest and most efficient way to own property in Puerto Aventuras, Playa del Carmen, Tulum, or Puerto Cancún.
What Is a Fideicomiso in Mexico?
A Fideicomiso in Mexico (bank trust) is a legal arrangement that allows foreigners to own property in restricted zones such as beaches and borders.
The property title is held by a Mexican bank as trustee, but you remain the sole beneficiary with full rights to sell, rent, remodel, or inherit your property.
This structure is ideal for individuals buying residential properties for living, renting, or vacation purposes. It’s simple, secure, and recognized under Mexican law.
What Is a Mexican Corporation?
A Mexican corporation (Sociedad Anónima or S. de R.L.) is a business entity registered in Mexico.
The company, not the individual, owns the property. You own shares in the company.
This method is typically used by foreign investors or developers who plan to buy multiple properties or operate rental businesses.
Key Differences Between Fideicomiso and Mexican Corporation
| Feature | Fideicomiso | Mexican Corporation |
|---|---|---|
| Use case | Residential ownership | Commercial or multiple investments |
| Legal owner | You (beneficiary of the trust) | The corporation |
| Complexity | Low | Higher (requires accounting, legal filings) |
| Setup cost | ~$1,000–$1,500 USD | ~$2,000–$3,000 USD |
| Annual maintenance | ~$400–$700 USD | ~$1,000–$2,000 USD (depending on accountants) |
| Taxes | Personal income / capital gains | Corporate + personal taxation |
| Inheritance | Easy via trust beneficiaries | Share transfer or corporate succession |
| Ideal for | One home or vacation property | Commercial or multiple properties |
When You Should Choose a Fideicomiso
Use a Fideicomiso in Mexico if:
You’re buying a single home or condo in a coastal zone.
You want minimal legal and tax complexity.
You’re looking for personal use or vacation rental income.
You prefer direct ownership without managing a company.
Example:
You buy a marina-view condo in Puerto Aventuras or a beachfront penthouse in Playa del Carmen. The bank manages the trust, you enjoy full rights, and inheritance is simple.
When You Should Choose a Mexican Corporation
A Mexican corporation can be better if:
You plan to buy multiple properties or commercial buildings.
You’ll manage rental income, hotels, or development projects.
You want to operate a business in Mexico or have partners.
Example:
You purchase five rental villas in Tulum or operate a vacation rental business. Managing this under a corporation simplifies taxes and allows you to reinvest profits.
Legal & Tax Considerations
Both structures are 100% legal for foreigners.
The Fideicomiso is usually safer for individuals.
The corporation requires more maintenance and annual filings.
You must hire a Mexican notary for closings and a local accountant for corporations.
Always consult a real estate lawyer and a tax professional before deciding.
Costs & Administration
Fideicomiso:
Setup: $1,000–$1,500 USD
Annual: $400–$700 USD
Renewal every 50 years (can be extended indefinitely)
Corporation:
Setup: $2,000–$3,000 USD
Annual: $1,000–$2,000 USD (legal/accounting fees)
Monthly accounting reports and SAT tax filings required
Advantages Summary
Fideicomiso
✅ Easier setup and maintenance
✅ Personal ownership rights
✅ Ideal for residential use
✅ Easier inheritance
Corporation
✅ Scalable for multiple properties
✅ Ideal for investors or commercial use
✅ Profit reinvestment flexibility
✅ Partnership structure possible
FAQs About Fideicomiso vs Mexican Corporation
Q1: Can I change from a Fideicomiso to a Corporation later?
Yes, but it requires legal steps, taxes, and notary approval. Consult a real estate attorney first.
Q2: Which is more common for foreigners?
The Fideicomiso in Mexico is by far the most common choice for individual buyers of beachfront properties.
Q3: Do I need a Fideicomiso if I buy through a Corporation?
If the corporation buys property in a restricted zone, it still needs foreign investment registration and government authorization.
– Choose Based on Your Goals
If your dream is to own one or two homes in Puerto Aventuras, Playa del Carmen, or Tulum, the Fideicomiso is the best, simplest, and safest choice.
But if you’re investing in multiple properties or running a business, a Mexican corporation gives you more flexibility and scalability.
Whichever route you choose, always work with trusted experts like
👉 PropertiesBayMX agents in Riviera Maya
and follow our property insights on YouTube.
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