Foreign Investment

The type of structure you choose when purchasing Mexican property in the restricted zone will depend on your intent for use of the property. Generally speaking, the fideicomiso is used when the purpose of property utilization is for private, residential use. If, however, the property is to be utilized for commercial purposes, then a Mexican corporation may be established.
The fideicomiso is essentially a trust that holds the title of the property. Written in the trust are provisions allowing you, the beneficiary, all the rights associated with utilizing the property. You may sell it, put a lien on it, build on it, etc. The fideicomiso is effective for a term of 50 years and may be extended for an additional 50 years.

The Mexican Corporation is essentially the same as a U.S. corporation. Your attorney will register the corporation in the capitol of the city l and you will own 100% of the stock of the corporation. Under this structure, the property should be utilized for commercial reasons. Generally speaking, commercial use can be for any revenue generating activity, including real estate rental, restaurants, bars, etc. You should consult with your attorney to determine which structure best fits your needs.

Costs

The cost of establishing a trust is somewhat less than establishing a Mexican Corporation. However, the benefit of having a corporation is that the corporation may own as many properties as it wishes. A trust, on the other hand, is set up to hold one piece of property. Therefore, under the trust structure you will have to create new trusts every time you acquire a new piece of property. This can become rather costly.
Generally speaking, the cost for establishing a trust is approximately $US 2,500 plus you will incur approximately 5-7% in closing costs. The cost for establishing a Mexican Corporation and transferring title is approximately $3,500 to $4,000.
Some of the costs you will see if you establish a corporation are as follows: