Property Taxes and Ownership Rules for Cozumel Owners

Cozumel sits within Mexico's restricted zone, the coastal and border band where foreign nationals cannot hold direct title to residential land. The established solution is the fideicomiso, a bank trust.

The fideicomiso

A Mexican bank holds title as trustee while the buyer, as beneficiary, holds all rights of use, rental, improvement, inheritance and sale. Trusts run in 50-year terms and are renewable.

Corporate ownership

A Mexican corporation is an alternative used mainly where the property serves a genuine commercial purpose. It carries ongoing accounting and filing obligations.

Annual obligations

• Predial — municipal property tax, typically low by North American standards and often discounted for early payment
• Trust fee — an annual fee charged by the trustee bank
• Rental income tax — where the property is rented out

On sale

Capital gains treatment depends on residency status, documented improvements and whether the property qualifies as a primary residence under Mexican rules. Plan this with an accountant well before listing.

This article is general information, not legal or tax advice. Confirm your position with a Mexican notary and accountant.