Tulum’s beaches are the epitome of postcard-perfect, with white sands, azure waters, and swaying palm trees.

With crystal-clear waters like this, it’s easy to see why people are drawn to this slice of tropical paradise.

Tulum’s Hotel Zone is a haven for vacationers of all stripes, including plenty of affluent young people eager for luxurious rentals.

This once-sleepy town has become a foodie paradise, with a wide range to offer from artisanal takes on traditional Mexican fare to international cuisine from around the world.

Bars and cafes abound, from relaxed retro-chic places to more active and vibrant venues for late-night revelry.

Mayan ruins not only provide a boost to Tulum’s tourist trade, but mean that development to the north of the town is restricted so inventory in this up-and-coming destination is like gold dust.

Eco-tourists flock to the Sian Ka-an Biosphere Reserve, which further blocks development of the land around Tulum to the south.

The Zoom Boom trend has attracted work-from-anywhere digital nomads to Tulum, providing a serious boost to the long-term rental market.

Tulum town has come a long way from the sleepy settlement it used to be, but still retains plenty of small-town charm with the recent additions of trendy coffee shops and co-working spaces for the digital nomad crowd.

In a city so new, everyone is from somewhere else. English is spoken everywhere.

Your Comments and Questions

Stephen says: Hi Ronan, I need your help because I haven’t purchased real estate in a foreign country.

Does the purchase provide me free property title or is there some special Mexican bank or trust holding the title? How does such a purchase escape the Mexican restriction zone of foreigners owning property within 50 km of the ocean?

Ronan says: You’re right that there are restrictions on foreign buyers within 50 km (31 miles) of the coast, but there’s a simple way around it.

In 1973, the Mexican government established the “fideicomiso,” or bank trust, as a legal way for foreigners to acquire land for residential purposes in these restricted zones.

The fideicomiso is a safe way to hold property in the restricted zones. It basically grants the title to a bank. You, as the buyer, can choose which bank you want to use from a list of banks approved by the Mexican government to act as trustees if you’re setting up a new fideicomiso. Although the bank is the trustee of the property, it can only act on the instructions of the beneficiary of the fideicomiso. The beneficiary is the foreign owner. In this case, you.

As the beneficiary, you retain full control of the property. You can live in it, sell it, make improvements to it, mortgage it, pass it to your heirs or rent it out. You can build on it if it’s a piece of land. You get to treat the property as if you owned it.

You can also name more than one beneficiary. A couple can therefore operate as co-owners, jointly making decisions on what to do with the property. You can name an heir, too, so if anything happens to a beneficiary, the named heir takes over as a new beneficiary. That’s an added upside. It avoids the need for probate. It avoids the need to pay local inheritance taxes, too.

The bank cannot treat the trust-held property as an asset of the bank. And the beneficiary is responsible for paying property taxes and any costs incurred for maintenance, etc.

Fideicomisos normally run for 50 years. Then, once it runs out, you can renew it for an additional 50 years.

I hope this helps.

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