A foreign national can acquire land almost anywhere in Mexico with the permission of the Foreign Affairs Ministry. The only exception in the Foreign Investment Law is that foreigners may not acquire directly real property in the "restricted zone". The restricted zone is the strip of land 100 km (60 miles) from the border and 50 km (30 miles) from the beach. If a foreigner wishes to acquire land in the restricted zone, he or she may enter into an innovative and secure method of holding title through a trust agreement known as a fideicomiso.

The following are the mechanisms for ownership:

1Foreign Individual in the restricted zone:

Fideicomiso: is a trust agreement, much like an estate trust or a living will in the United States. This provides and protects all the rights of ownership. The Trustee (Mexican Bank) takes instruction only from the beneficiary. The beneficiary has the right to use, occupy, lease or build/improve their property. The initial term for the trust is 50 years; however, the trust can be renewed for additional 50 year periods indefinitely.

2Foreign Individual in the non restricted zone:

Fee Simple Title (escritura)

3Mexican Corporation:

A Mexican company with foreign investment, even 100% foreign investment, may acquire fee simple title in the restricted zone as long as it is not used for strictly residential purposes. If the property is considered to be solely residential, the company must use a trust. The Regulations of the Mexican Foreign Investment Law state that residential real estate is real estate specifically to be used as a dwelling by the owner.

4Mexican National:

Fee Simple Title (escritura) & Fideicomiso