Setting up a trust
The word fideicomiso refers to an escrow or trust.
The trust is comprised of one or more persons associated with a financial institution that is certified and/or commissioned within its residing state or country.
Buyers can set up one of two types of trusts when purchasing property in Mexico: a bank trust or a Mexican corporation.
First off, a bank trust is not a lease. The bank only takes its instructions from the beneficiary, or the property's legal owner/purchaser. In no way is your property an asset to the bank and they are there only to help you manage it. The owner has full rights to occupy, lease, alter, and/or build on the property. The owner also has the right to instruct the trustee to transfer title to a new owner or heir. The Mexican Constitution will always protect your property.
As a new owner, you will need to find a bank trust or financial institution to hold the trust. You will draw up an agreement and discuss the benefits you will receive as being the first beneficiary. At this time, you will also assign a second beneficiary - an inheritor in case of death, physical illness or mental disorder.
There is an initial fee to set up the trust, which varies depending on property and institution.
On average, however, it costs $700 USD Annual fees also vary depending on the institution. Trustees can set up the bank trust for a period of 50 years; upon reaching the final years, they can extend or renew the trust for a further 50 years.
If you plan to use your property for business and/or plan to purchase a business, setting up a Mexican corporation is the right thing to do. The costs to these are different than those of a bank trust.
For more information and assistance contact CEO Real Estate Cozumel
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