Introduction:
Mazatlán has become a favorite destination for foreigners looking to invest in real estate in Mexico. But if you're not a Mexican citizen, it's important to understand the legal process for buying property within the restricted zone. This is where the bank trust comes in. In this article, we explain everything you need to know about what it is, how much it costs, which banks offer it, and its advantages and disadvantages compared to other legal options.
What is a bank trust for foreigners?
A trust is a legal contract whereby a Mexican bank acts as trustee to acquire and hold property on behalf of a foreign national. Although the bank is the legal owner, the foreign buyer retains all rights to use, rent, sell, inherit, and modify the property.
This mechanism is applied when a foreign person wants to acquire a property located within the "restricted zone" of Mexico, which includes all areas 50 km from the coasts or 100 km from the borders.
How much does it cost to set up and maintain a trust?
Costs vary slightly depending on the bank, the property value, and the location, but on average the updated amounts for 2025 are:
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Trust setup cost: $20,000 - $30,000 MXN (one-time payment)
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Annual administration fee: $500 – $700 USD (payable annually)
Additionally, you will need to consider other expenses such as:
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Notary fees
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Registration fees at the Public Registry
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Taxes (such as ISAI)
Which banks offer trusts in Mazatlán?
Currently, several authorized Mexican banks offer trust services for foreigners. Some of the most commonly used include:
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BBVA Mexico
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Banorte
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Santander Mexico
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Scotiabank
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HSBC Mexico
Each bank offers different processing times, costs, and additional benefits. It's advisable to compare at least three institutions before making a decision.
What are the pros and cons of a trust?
Advantages:
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It is 100% legal and safe.
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It allows the foreigner to have full control over their property.
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It is inheritable: you can designate beneficiaries in case of death.
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It saves you from having to set up a company.
Disadvantages:
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It involves an annual maintenance cost.
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There may be longer processes in banks with high demand.
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It requires notarial procedures and legal supervision for its formalization.
Trust vs. Incorporating a company: Which option is better?
Another alternative some foreigners consider is creating a Mexican company (a legal entity) to hold the property title. However, this option is usually more expensive and complicated if your intention is simply to own a vacation home or retirement residence.
Quick comparison:
| Aspect | Trust | Mexican Company |
|---|---|---|
| Initial cost | Half | Stop (register + counters) |
| Maintenance cost | Low (annual) | High (monthly accounting) |
| Property control | Total | Total |
| Ideal for... | Personal use or occasional rental | Investors with many properties |
Recommendation:
If you are a foreign buyer who wants to acquire one or a few properties for personal use or vacation rental, a trust is the most practical and economical option.
Conclusion
A bank trust is a legal, secure, and effective solution for foreigners to purchase properties in coastal areas like Mazatlán. Despite its costs and requirements, it offers legal peace of mind and access to one of Mexico's most beautiful regions. If you're considering buying a beach property, be sure to consult with a notary public and choose a reliable bank to formalize your trust.