Foreigners owning property in Mexico, specifically the Baja California Peninsula
What is a Foreigner?
Anyone who is not a citizen of Mexico.
How is Mexico comprised?
Mexico is a federal republic made up of 32 states, two of which are located on the Baja California Peninsula:
- Baja California (the northern state)
- Baja California Sur (the southern state)
Can a foreigner own property on the Baja California Peninsula?
YES!
Since the 1970s, a Presidential Resolution to the Mexican Constitution has allowed foreign ownership of property within the “restricted zones.” These zones are defined as land within 100 km of Mexico’s borders and 50 km of its coastlines—which means the entire Baja California Peninsula falls within the restricted area.
Foreign ownership here is possible in two ways:
- Through a Mexican Bank Trust Agreement (Fideicomiso)
- Through a Mexican corporation
Understanding the Fideicomiso
A Fideicomiso functions much like a property trust in the United States or Canada, with some key differences and requirements:
- A Mexican bank must serve as the Trustee.
- The bank charges an annual service fee, typically between $550–$850 USD.
- Late payments may result in fees and interest.
- The trust is valid for 50 years and can be renewed indefinitely in additional 50-year periods by you or your beneficiaries.
- The bank is legally obligated to act according to the instructions of the beneficiary (you, the property owner). Mexican banks are highly regulated, and this responsibility is taken very seriously.
At closing, it’s important to carefully review the names listed on the Fideicomiso and title documents, just as you would in the U.S. or Canada. You will also be asked to designate a substitute beneficiary, which ensures your property avoids probate—again, similar to how trusts function north of the border.
Gretchen handled the sale of my home in Loreto and successfully overcame many challenges. She is very experienced at navigating Mexican property sales and legal complexities, and exercised the persistence and tenacity required to close an end-to end property sale. Gretchen is a very personable and caring professional who always keeps her word, follows through on promises, and goes beyond the job description to achieve buyer and seller satisfaction. I would unhesitatingly recommend her to anyone seeking to buy or selling property in Mexico.
Working with Gretchen was an absolute pleasure from start to finish. Our home sale was extremely challenging-from the disappointment of having to terminate the first buyer’s contract, to the uncertainty of finding new qualified buyers. Through it all, Gretchen remained positive, organized, and relentlessly dedicated. She kept us informed at every turn, provided creative solutions, and ultimately found wonderful new buyers who truly loved our home. Her expertise, patience and support made a tough situation far less stressful, and we could always count on her to handle every detail professionally. I am deeply grateful for her determination and heart and highly recommend Gretchen to anyone buying or selling a home in Loreto. She exceeded every expectation, and I would absolutely work with her again.
I worked with Gretchen Bell to both buy and sell multiple properties, and she was exceptional every step of the way. She sold three of my homes and later represented me in the purchase of a property that checked all the boxes—even reaching out to me while I was abroad so I wouldn’t miss the opportunity. Gretchen is highly professional, attentive, and detail-oriented, always keeping me informed and making the process seamless. Her follow-through and care turned what could have been stressful transactions into stress-free experiences. I always felt confident in her guidance, and I would absolutely recommend her to anyone buying or selling real estate.