So… What Is the Restricted Zone in Mexico?
- William Hutt
- Jan 10
- 2 min read
So… What Is the Restricted Zone in Mexico?
If you’re looking at buying property near the beach in Mexico, you’re almost guaranteed to hear the phrase Restricted Zone.
It sounds official.
It sounds limiting.
It sounds like something you should worry about.
In reality, it’s just a legal structure — and it’s one that works very well.
What exactly is the Restricted Zone?
Foreigners absolutely can own property in the Restricted Zone. The only difference is that the title is held in a bank trust for legal purposes, while the buyer remains the owner with full rights.
That’s it. Nothing more dramatic than that.
It includes:
Land within 50 kilometers (about 31 miles) of the coastline
Land within 100 kilometers (about 62 miles) of an international border
This rule comes from Article 27 of the Mexican Constitution, and it has been around for a long time.
Does this mean foreigners can’t buy beach property?
Absolutely not.
Foreigners buy property in the Restricted Zone every single day, including in places like:
Puerto Vallarta
Cancún
Playa del Carmen
The key difference is not whether you can buy. It’s simply how ownership is set up legally.
The solution: the fideicomiso (and why it’s not scary)
Most foreign buyers use something called a fideicomiso.
Despite the name, it’s very straightforward.
A fideicomiso is the legal way Mexico allows foreigners to own property in the Restricted Zone. Your name is on the trust as the owner, and your rights are fully protected.
Here’s the easiest way to understand it.
Think of it like a safe deposit box at a bank.The bank provides the secure legal holder, but everything inside is yours.
With a fideicomiso:
The bank holds the legal title
You own the property
You control it completely
You can:
Live in it
Rent it
Sell it
Leave it to your heirs
The trust is issued for 50 years and can be renewed indefinitely.
Nothing about a fideicomiso takes away your control. It’s simply the structure that makes foreign ownership near the coast possible — and it has been used safely and successfully for decades.
What about Mexican citizens?
Mexican citizens can own property directly, anywhere in the country, including the Restricted Zone.
This rule applies only to non-Mexican individuals.
Why does the Restricted Zone exist at all?
It dates back to Mexico’s post-revolution period and was created to:
Protect national territory
Prevent foreign control of strategic land areas
Over time, the fideicomiso system was created to balance that protection while still allowing foreign investment. That balance is exactly why Mexico’s coastal real estate markets continue to grow and thrive.
The bottom line
The Restricted Zone:
Does not stop foreigners from buying property
Does not limit how you use or sell your home
Does not make ownership unsafe or temporary
It simply changes how title is held, not your rights.
If you’re dreaming of a beach condo, an ocean-view home, or an investment near the coast, the Restricted Zone is just a legal detail — not a roadblock.
Beach living is still very much on the table.
Will Hutt
Coldwell Banker la Costa
+1-239-691-0782
@BeachPleasePVR on Instagram
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