By the RESMA Real Estate team · San Miguel de Allende · Updated: 10 Nov 2026 · Leer en español

Short answer: usually no. A fideicomiso (bank trust) is the legal route for foreigners to hold residential property inside Mexico's restricted zone, along the borders and coasts. San Miguel de Allende is outside that zone, so a foreign buyer can take title directly after filing an agreement with the Ministry of Foreign Affairs (SRE). A trust is optional and may still be useful in specific situations.

What a fideicomiso is

A fideicomiso is a contract in which a Mexican bank (the trustee) holds legal title to a property for the benefit of the buyer (the beneficiary). The beneficiary can use, rent, sell or bequeath the property, while the bank appears as titleholder in the registry. For properties in the restricted zone, the SRE grants permits for these trusts for a maximum of 50 years, and the contract must be formalized in a public deed.

The restricted zone, in one paragraph

Article 27 of the Mexican Constitution bars foreigners from acquiring direct ownership of land within 100 kilometers of the borders and 50 kilometers of the coasts. The Foreign Investment Law created the trust as the way to use and benefit from residential property there. Outside the zone, the same law requires foreigners to file a written agreement with the SRE (the convenio de renuncia, also known as the Calvo clause) before acquiring property. For municipalities entirely outside the zone, the law says the permit is deemed granted if the SRE does not publish a refusal within five business days. In practice, the SRE's current guidance indicates an approximate response time of 20 business days.

Direct title or trust: a comparison

Federal fees: Ley Federal de Derechos, art. 25, fractions XV, V(a) and III, amounts for 2026. Trust fees (opening, annual and termination) are set at the discretion of each bank acting as trustee; request written quotes.

When a trust may still be worth discussing

• Estate planning. Some buyers value naming substitute beneficiaries in the trust. A Mexican will is another common route. Compare both with a professional.
• Specific lender or seller requirements. Some financing or development structures work through trusts. Read the conditions carefully.
• Properties outside San Miguel. If you are also buying on the coast, the rules there are different.

What a trust does not do

A trust does not replace due diligence. It does not certify that the property has clean title, proper permits or correct boundaries. The bank holds title; it does not review the condition of the home or guarantee its value. That review is part of the work of the notary and of any advisors you hire.

Frequently asked questions

Related reading

• Buying Property in Mexico as a Foreigner: A Step-by-Step Guide for San Miguel de Allende
• Buying Mexican Real Estate Through an LLC or Retirement Account: Questions to Ask First
• Browse homes for sale
• Search the AMPI MLS
• Contact RESMA

Sources

• Constitución Política de los Estados Unidos Mexicanos, art. 27, fracc. I
• Ley de Inversión Extranjera, art. 10-A (DOF 24-12-1996)
• SRE · Convenio de renuncia para la adquisición de inmuebles fuera de la zona restringida (updated 19 Jun 2026)
• SRE · Permiso para constitución de fideicomiso en zona restringida
• Ley Federal de Derechos, art. 25 (amounts for 2026)

Sources consulted on 10 Nov 2026.

By Jesús Barrios Huerta, CEO of RESMA Real Estate · San Miguel de Allende · Updated: 10 Nov 2026 · Leer en español

Short answer: yes. San Miguel de Allende is outside Mexico's restricted zone, so a foreign individual can hold title to a home directly in their own name. Before signing the deed, the buyer files a short agreement with Mexico's Ministry of Foreign Affairs (SRE). A notario público formalizes the sale, calculates the taxes and registers the deed.

Why San Miguel de Allende is different from the beach

Mexico's Constitution limits direct ownership by foreigners inside a "restricted zone": a strip of 100 kilometers along the borders and 50 kilometers along the coasts. In that zone, foreigners usually buy residential property through a bank trust (fideicomiso). Guanajuato has no coastline and is far from any international border, so homes in San Miguel de Allende can be deeded directly to a foreign buyer. A trust remains optional, and we explain when it may still make sense in Do You Need a Fideicomiso? (the next article in this series).

The process, step by step

1. Define the search. Budget, currency, neighborhood, whether you need parking or a single level, and how you plan to use the home. Prices in San Miguel are listed in both pesos and dollars, so agree on one reference currency from the start.
2. Visit and shortlist. Walk the streets at different times of day. Slopes, noise and parking vary a lot within a few blocks.
3. Request the documents before the offer. At a minimum: the current deed (escritura), recent property tax (predial) and water receipts, and, for condominiums, the regulations (reglamento) and fee statement. The idea is to find open issues before money changes hands.
4. Make a written offer. It states price, currency, deposit, timeline, what is included (furniture, appliances) and the conditions the sale depends on.
5. Sign a purchase agreement and pay a deposit. Usually a promissory purchase contract (contrato de promesa de compraventa) that sets the closing date and what happens if either party withdraws. Ask how and where the deposit will be held.
6. Due diligence by the notary. The notario requests a certificate of liens and encumbrances from the Public Registry, checks the chain of title, confirms that taxes and services are current and reviews the seller's authority to sell.
7. SRE agreement (convenio de renuncia). Foreign buyers file a written agreement with the SRE in which they agree to be treated as Mexican nationals regarding that property and not to invoke their government's protection. For 2026 the federal fee is MXN $5,252.02, and the SRE indicates an approximate response time of 20 business days.
8. Closing. Buyer and seller sign the public deed before the notary. Taxes are paid and the balance of the price is settled by the agreed method.
9. Registration. The notary registers the new deed with the Public Registry of Property. Ask for a copy of the registered deed and keep it with your records.

Common myths

"Foreigners can only lease land for 50 years."

That describes bank trusts in the restricted zone, which are granted for up to 50 years and can be renewed. It does not describe direct ownership in San Miguel de Allende.

"The notary represents me."

The notario is a public officer who must act impartially. Many buyers also hire their own attorney or advisor, especially for complex properties, ranches or company structures. See The Role of the Notario Público in this series.

"If a property is listed, its papers are in order."

A listing is not a legal review. Every property should be checked on its own: ownership, liens, construction permits, boundaries, condominium rules and, for land outside the urban area, the type of land tenure.

What to have ready as a buyer

• A valid passport and proof of your immigration status (the SRE asks applicants to show it).
• Proof of the origin of your funds. Mexican anti-money-laundering rules require the notary to identify the parties and the means of payment, and they restrict cash in real estate transactions.
• If you buy as a couple or through a company, the documents that prove marital status or corporate authority, apostilled and translated when they come from abroad.
• A Mexican tax ID (RFC) is not always needed to buy, but the notary may request it. It also matters for future sales or rentals. Ask early.

How long does it take?

It depends on the property, the documents and the parties. A cash sale with clean title and a responsive SRE filing can close in a few weeks; inheritances, missing permits or rural land can take months. We would rather tell you what is pending than promise a date.

Frequently asked questions

Related reading

• The Costs of Buying a Home in San Miguel de Allende: Taxes, Notary Fees and More
• The Role of the Notario Público in a Mexican Property Purchase
• San Miguel de Allende doesn't have just one price
• Browse homes for sale
• Search the AMPI MLS

Sources

• Constitución Política de los Estados Unidos Mexicanos, art. 27, fracc. I
• Ley de Inversión Extranjera, art. 10-A (DOF 24-12-1996)
• SRE · Convenio de renuncia para la adquisición de inmuebles fuera de la zona restringida (updated 19 Jun 2026)
• Ley Federal de Derechos, art. 25 (amounts for 2026)
• Ley de Ingresos para el Municipio de San Miguel de Allende, Gto., 2026 — arts. 7 and 25 (P.O. 260, 30-12-2025)
• Ley del Notariado para el Estado de Guanajuato

Sources consulted on 10 Nov 2026.