Buying property in Puerto Vallarta as a foreigner: the fideicomiso explained
Updated · By Chase Jordan
Reviewed by Lic. Erick Pichardo, Vallarta Law · October 27, 2026
Yes. Foreigners can legally own a home in Puerto Vallarta and the Riviera Nayarit. Because the whole bay is inside Mexico’s restricted zone, you hold it through a bank trust (fideicomiso): a Mexican bank holds title and you keep every owner’s right to live in, rent, sell or leave the property to your heirs.
Why Puerto Vallarta uses a trust
Mexico’s Constitution and foreign investment law reserve a strip 50 km wide along the coasts (100 km along the borders) where foreigners cannot hold title directly. Puerto Vallarta and the whole Bay of Banderas sit inside that strip, so foreign buyers use a trust instead of a direct deed.
How the trust works
- The bank holds title for you; you are the beneficiary, with full rights to live in, rent, renovate, sell or bequeath the property.
- It lasts up to 50 years and can be renewed.
- The permit comes from Mexico’s foreign ministry (SRE). Your notary and the trust bank request it as part of closing.
- You name substitute beneficiaries, which lets the property pass to your heirs.
The other route: a Mexican company
A Mexican company can hold property in the zone directly, but only for commercial purposes; a home you live in still goes through a trust. This mostly suits commercial or rental-business buyers, and it carries ongoing accounting costs.
Buying a home that is already in a trust
Many resale homes are already held in a trust. Taking over the seller’s trust (a trust assignment, cesión de derechos fideicomisarios) instead of opening a new one is usually the better choice: it is cheaper and more practical. The exception is a trustee bank with a poor reputation or known for slow processing.
What it costs
Budget roughly $500–$2,500 USD to set up a new trust and about $500–$800 USD a year to keep it, depending on the bank. These are planning ranges from published estimates, not quotes; your notary and the bank give you the real figures before you sign.
Frequently asked questions
Is a fideicomiso safe?
It is the standard structure used by foreign buyers on Mexico’s coasts. You are the beneficiary with full use and sale rights; the bank acts as trustee and cannot sell or use the property for itself.
Can I sell a property held in a trust?
Yes. You can sell it to a new buyer, who either takes over the trust or sets up a new one, depending on the bank and the case. Your notary handles the transfer.
Do I need a trust in Nayarit too?
Yes. The Riviera Nayarit coast is also inside the restricted zone, so the same rules apply.
My listings that fit
Sources
- SRE: permit to set up a trust on property in the restricted zone (official, Spanish)
- Ley de Inversión Extranjera, article 11 (text of the law)
- Foreign investment rules: restricted zone and bank trusts (SDV law firm)
- Closing-cost ranges: compiled from published estimates by Puerto Vallarta brokers and notaries (Nov 2025 – May 2026); confirm with your notary
General information, not legal or tax advice. Prices and availability can change. Estimates are not a notary calculation.