The reason for the trust is that back in the 1800’s there was a war between Mexico and the United States disputing territorial in Northern Mexico. Due to this some of the land was granted or sold to the United States and the Mexican Constitution was modified stating that no foreigner could own property within the Restricted Zone. The Restricted Zone is 100 kilometers of every land border with another country and within 50 kilometers of every water boarder of the country.

In the 1980’s came The North American Free Trade Agreement (NAFTA). While reaching this agreement with the United States and Canada, Mexico saw the need of foreign investment in the Real Estate sector. In response the government created an amendment in the constitution to where foreigners can own property in the Restricted Zone but it would have to be through a bank trust known as a Fideicomiso.

There are many benefits to owning property in a Fideicomiso, including the fact that you can pass the property down to your heirs. Additionally, Fideicomisos are regulated by the Mexican government, so you can be sure that your investment is safe. Make sure to click on the image below to see the video of Victor Gonzalez with Ventura One talking about the origin of Fideicomisos and stay tuned for more info on the advantages of owning property in Mexico.