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MEXICAN
BANK TRUST OR FIDEICOMISO
The Fideicomiso or Mexican Bank Trust is a mechanism
that enables foreign persons or companies to purchase property in
Mexico. The trust mechanism was created to allow foreign investors
to participate in Mexico's rapidly expanding sectors, while exercising
complete and legal control over their investments while complying
with Mexico's investment laws.
The trust is a property interest held
by a Mexican bank. The sole purpose of the bank is to manage
the property for the benefit of the owner of the trust. Real
estate investment trusts enable foreign entities to invest in Mexico's
coastal and border areas which were once restricted from foreign
investment of any kind.
Only Mexican banking institutions authorized
and regulated under Mexican laws can serve as trustees. The
beneficiary of the trust, the foreigner, retains the use and control
of the property held in trust and makes the investment decisions
with respect to the property. This can include the decision
to transfer such property interest to another foreigner realizing
all of the economic benefits that accompany equity ownership in
Mexico's attractive coastal properties.
Trusts are established for initial
50 year periods and can be renewed indefinitely for additional 50
year periods. The beneficiary may transfer or assign his beneficial
interest to any person and keep the profits from the sale of the
property subject to applicable tax laws and expenses for the sale.
Property held under a trust can be passed on to future generations
and the person to which the bequest is made is not burdened with
an inheritance tax.
Fideicomisos are an easy and safe way
for you to own property in Mexico. They are government sanctioned
and offer strong protection. Potential investors are encouraged
to contact us for assistance in setting up your Mexican bank trust.
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