There are legal steps you will have to follow when buying property in Mexico as a foreigner, however with my guidance you will soon discover that the process can be simple and easy to understand. In short, foreigners can own property through a bank trust known as a Fideicomiso that is set up when you purchase property in Mexico. The fideicomiso is a real estate trust that is held under your name in a Mexican bank. The bank acts as the fiduciary, you and your heirs and assigns are the beneficiaries of the fideicomiso. The fideicomiso gives the beneficiary absolute control of the property. So you can enjoy it, lease it, improve it, mortgage, sell, inherit, give away. Basically, your property is under a fiduciary of which you are the owner to be managed by a bank in Mexico on your behalf. The purpose of a fideicomiso is to authorize foreigners the power to buy real estate in Mexico within the “restricted” zone and ensure a secure transaction. The “restricted” zone is land 31 miles from the coast and 62 miles from the border. When the Mexican Constitution was written it was designed to protect this land. In order not to amend the Mexican constitution, they created and added the fideicomiso to promote high demand international investments, especially on the coast. Residential properties outside the restricted zone can be acquired directly by foreigners without a fiduciary, however, some buyers decide to obtain it. Your fiduciary is not owned by the bank; they are simply administrators.