International Investors
The Fideicomiso bank trust — established by the Mexican government over 50 years ago — enables full ownership rights for non-Mexican nationals. Through Banco Covalto's fiduciary infrastructure, Covest delivers a 100% digital Fideicomiso formation process — from identity verification to public registry filing — with no in-person visits required for trust establishment.
50+
year legal framework
60+
treaty countries
100%
digital trust formation
Legal Framework
Article 27 of the Mexican Constitution restricts direct foreign ownership of real estate within 100 kilometers of national borders and 50 kilometers of coastlines — Mexico's most desirable investment areas. In 1973, the Mexican government created the Fideicomiso bank trust as the official solution, giving foreign nationals full ownership rights through a regulated bank trust structure.
The zona restringida covers coastal and border areas including the Riviera Maya, Los Cabos, Puerto Vallarta, and Cancún. Foreign nationals cannot hold direct title to property in these zones — but they can hold full beneficial ownership through a Fideicomiso administered by a licensed Mexican bank.
A Fideicomiso is a bank trust where a licensed institution (Banco Covalto) holds legal title on behalf of the foreign beneficiary. You retain 100% of the economic rights — rental income, appreciation, and sale proceeds. The trust is perpetually renewable and governed by Mexico's federal banking law under CNBV supervision.
As beneficiary of the Fideicomiso, you have the right to sell, rent, renovate, bequeath to heirs, and enjoy your property exactly as a Mexican national would. The trust structure provides an additional layer of legal protection — your asset is held in a regulated, audited institution separate from any single party.
Created by the Mexican government specifically for foreign buyers
Ownership Rights
The Fideicomiso grants you identical economic rights to Mexican nationals. You are not leasing, licensing, or borrowing access — you are the legal beneficiary with full control over your investment.
Transfer your beneficial interest at any time, to any buyer, at any price you choose. There are no platform lockups, no approval requirements from Covest, and no restrictions on secondary market transactions.
Receive your proportional share of rental revenue generated by the property. Income is distributed according to the trust agreement, with full transparency on occupancy rates, expenses, and net yields.
Your beneficial interest passes to your designated heirs under the terms of the Fideicomiso. The trust structure simplifies cross-border inheritance — avoiding the complexity of international probate proceedings.
As a co-owner, you participate in decisions about property improvements and renovations. Capital expenditures are governed by the trust agreement, with transparent budgeting and supermajority approval for major works.
Digital-First Process
Banco Covalto's digital infrastructure enables Covest to deliver what traditionally required 12-15 office visits in just 4-6 weeks from anywhere in the world. From biometric identity verification to public registry filing, the entire Fideicomiso formation process is conducted through Covalto's regulated digital channels.
Complete identity verification and anti-money laundering checks through a secure digital platform. Upload your passport, proof of address, and source of funds documentation — all reviewed and processed remotely.
Mexican notarial requirements are fulfilled through authorized digital notarization protocols. No need to visit a notary office in Mexico — the process is conducted via secure video conference with a licensed notario público.
Sign all trust documents, subscription agreements, and regulatory filings using legally recognized digital signature technology. Every document is timestamped, encrypted, and stored in a tamper-proof audit trail.
Banco Covalto's infrastructure enables Covest to form the Fideicomiso bank trust entirely through digital channels. The trust is registered with the CNBV, and you receive your beneficiary certificate confirming full ownership rights.
4-6 weeks from anywhere vs. 12-15 office visits traditionally
Tax Considerations
Mexico maintains bilateral tax treaties with over 60 countries, providing important protections against double taxation. Understanding your obligations is essential for maximizing after-tax returns on your Mexican real estate investment.
The Mexico-US tax treaty provides reduced withholding rates on rental income and capital gains. US investors must also comply with FBAR (FinCEN Form 114) and FATCA reporting requirements for foreign financial accounts. Consult a cross-border tax professional to optimize your structure.
Mexico-US Tax Treaty
The Mexico-Canada tax treaty offers similar protections against double taxation. Canadian investors should be aware of CRA Form T1135 (Foreign Income Verification Statement) requirements for foreign property exceeding CAD $100,000. Professional tax planning can minimize your combined tax burden.
Mexico-Canada Tax Treaty
Mexico has active tax treaties with over 60 nations across Europe, Asia, and Latin America. Each treaty provides specific provisions for real estate income, capital gains, and inheritance. We recommend consulting a tax advisor in your country of residence for treaty-specific guidance.
60+ bilateral treaties
This is educational content, not tax advice. Consult a qualified tax professional for guidance specific to your jurisdiction and circumstances.
Common Questions
Tax Registration
Foreign investors in Mexican real estate are required to obtain an RFC (Registro Federal de Contribuyentes) from Mexico's tax authority (SAT). It's a quick, one-time errand — less than an hour at a local SAT office. Covest can help you coordinate the process so you can treat it as a simple stop on your next trip to Mexico.
Plan Your SAT VisitJoin international investors from over 15 countries who have chosen Covest's Fideicomiso-backed fractional ownership model. Browse vetted properties or learn more about the process.