Investing in Mexico Made Simple: Trust or Corporation?

Before signing any contracts, choose the right legal structure for your investment

Thinking about investing in Mexico — buying property, launching a business, or renting out real estate? Your first step should be choosing a legal structure that protects your assets and complies with Mexican law.

What’s best for you?

1. Bank Trust (Fideicomiso):

   • Recommended if you’re buying property for personal use in restricted zones (like beaches or border regions).

   • Required for foreigners purchasing property without creating a Mexican company.

   • Handled through a Mexican bank that holds the property in trust on your behalf.

2. Mexican Corporation (e.g., S.A. de C.V.):

   • Ideal for rental, commercial, or business purposes.

   • Allows you to invoice, deduct expenses, hire employees, and have partners.

   • Requires setup through a notary and ongoing tax compliance.

Pro tips:

Clearly define the purpose of your investment before choosing a structure.

If you plan to rent or run a business, a corporation offers tax efficiency and legal protection.If it’s for personal vacation use, a trust is the safest and legal route.Each option comes with different costs, timelines, and responsibilities — get expert advice.

At Cadena Business Advisors, we’ll help you choose the right path, handle the paperwork, and keep your investment on solid legal and fiscal ground.

Investing in Mexico can be easy — when you build it on the right foundation.