The FOREIGN RELATIONS PERMIT FOR THE FIDEICOMISO

What do we do when it expires?

Under Mexican law, all properties acquired by foreigners must be held in a Mexican bank trust which is known as a fideicomiso (fi day co me so). These bank trusts are established by permission and a permit from the Mexican Secretary of Foreign Relations.

Originally, when the law was established in 1972, the permit was given for thirty years. At that time no one knew what would happen when the permit expired except that the law stated that “property must be transferred to one who is legally entitled to hold title”. This left a big uncertainty for those who were investing large sums of money in Mexican properties.

What is the procedure for renewing a trust permit? It is relatively simple; an application must be made to the Secretary of Foreign Relations to obtain a new fifty year permit.   Upon receipt of same, the old permit extinguished by the trustee bank and the new permit formalized by the trustee bank and the notary public. The trustee bank may be the same or a different one from the original permit.