Living in Nayarit,Mexico

Information on Fidecomiso

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Fidecomiso

The "Restricted Zone" is the strip of Mexican territory 100Kms. in depth from the borders and 50 Kms. from the coast lines. In which foreigners may not acquire direct ownership of real estate. This prohibition does not exclude the possibility that foreigners may use and enjoy real estate within this zone under legal titles other than ownership, using various procedures, such as: A) A 100% foreign owned Mexican company may directly acquire property within this zone to perform non-residential activities: that is, industrial, commercial and tourism activities.
B) If the real estate if for residential purposes, foreign individuals or companies, and Mexican companies with 100% foreign capital stock, may acquire rights to use and benefit from the real estate through a trust, ( Fidecomiso ).

In such fidecomiso the settler delivers to the trustee ( A Mexican Bank ) in an irrevocable in the "Restricted Zone", as consideration for an amount (price ) received from the beneficiary of the trust ( the purchaser ). The beneficiary amount (price) received from the beneficiary of the trust ( The purchaser ). The beneficiary acquires the rights to use and benefit from the real estate, including the rights to manage, operate, lease, inhabit and encumber the same, as well as the right to obtain the fruits, products and other benefits deriving from the utilization or exploitation of the real estate, through third parties or the trustee: and even transfer the rights to other acquirers, receiving the proceeds from such sale. Duration of the trust shall be for 50 years. Renewable for equal periods.