Authored by the expert who managed and guided the team behind the Mexico Property Pack
Everything you need to know before buying real estate is included in our Mexico Property Pack
Yes, you can buy a house in Mexico without Mexican citizenship, but there are specific rules and restrictions depending on the property location.
Foreigners can purchase property directly in most of Mexico, but coastal and border areas require special legal structures like a fideicomiso (bank trust) or Mexican corporation. As of June 2025, the Mexico real estate market continues to attract international buyers with strong rental yields and property appreciation, particularly in tourist destinations and expat communities.
If you want to go deeper, you can check our pack of documents related to the real estate market in Mexico, based on reliable facts and data, not opinions or rumors.
Foreigners can buy property in Mexico without citizenship using legal structures like fideicomiso trusts for restricted zones or direct ownership in unrestricted areas.
The process involves hiring a notary public, conducting due diligence, and paying closing costs of 5-8% of the purchase price.
| Property Location | Ownership Method | Key Requirements |
|---|---|---|
| Interior Mexico (unrestricted zone) | Direct ownership | No special requirements |
| Within 50km of coast | Fideicomiso (bank trust) | Mexican bank trustee required |
| Within 100km of borders | Fideicomiso or corporation | Special legal structure needed |
| Commercial properties (restricted zones) | Mexican corporation | 51% Mexican ownership required |
| Ejido (communal) land | Generally prohibited | Avoid purchasing |
| Beachfront properties | Fideicomiso only | 30-year renewable trust |
| Investment properties (all zones) | Various structures available | Tax planning essential |
Can someone without Mexican citizenship buy property in Mexico the same way as a Mexican citizen can?
No, foreigners cannot buy property in Mexico exactly the same way as Mexican citizens.
Mexican citizens can purchase property anywhere in the country without restrictions. Foreigners face limitations in the "restricted zone" which includes areas within 50 kilometers of the coast and 100 kilometers of international borders.
In unrestricted areas (interior Mexico), foreigners can buy property directly in their name with the same rights as Mexican citizens. However, in restricted zones, foreigners must use a fideicomiso (bank trust) or a Mexican corporation to legally own property.
As of June 2025, approximately 60% of Mexico's territory falls within unrestricted zones where foreigners can buy directly.
It's something we develop in our Mexico property pack.
Are there specific restrictions on foreigners buying land near the coast or borders in Mexico?
Yes, there are strict restrictions for foreigners purchasing property in Mexico's restricted zones.
The restricted zone includes all land within 50 kilometers of any coastline and 100 kilometers of any international border. This covers popular destinations like CancĂșn, Playa del Carmen, Puerto Vallarta, Cabo San Lucas, and border cities like Tijuana.
Foreigners cannot directly own land in these areas but can acquire property rights through a fideicomiso (bank trust). The fideicomiso allows foreigners to have all the benefits of ownership including the right to sell, lease, inherit, and improve the property.
The trust must be established with a Mexican bank, costs approximately $500-800 annually in maintenance fees, and has a 50-year renewable term. As we reach mid-2025, most coastal properties available to foreigners use this structure.
Do I need to be a resident or have a visa to purchase property in Mexico?
No, you do not need Mexican residency or a visa to purchase property in Mexico.
Tourists can buy property using just a valid passport and tourist visa (FMM form). There are no residency requirements for property ownership, whether in restricted or unrestricted zones.
However, if you plan to live in Mexico for more than 180 days per year, you'll need to obtain temporary or permanent residency separately from your property purchase. Many foreign buyers maintain tourist status and visit their Mexican properties periodically.
Some benefits come with Mexican residency, including easier access to Mexican mortgages and banking services, but residency is not mandatory for property ownership.
Is physical presence in Mexico required during the purchase process?
Physical presence in Mexico is typically required for the final closing but not for initial negotiations.
You can conduct property searches, make offers, and sign preliminary agreements remotely. However, Mexican law requires the final deed (escritura) to be signed in front of a notary public (Notario PĂșblico) in Mexico.
Some buyers use a power of attorney to complete the transaction through a representative, but this requires the power of attorney to be properly apostilled and translated. Most real estate attorneys recommend being present for the closing to ensure all documents are correct.
The entire process from offer to closing typically takes 30-60 days, so planning a trip to Mexico for the final steps is usually necessary.
Don't lose money on your property in Mexico
100% of people who have lost money there have spent less than 1 hour researching the market. We have reviewed everything there is to know. Grab our guide now.
What documents are needed to legally buy property in Mexico, and what is the step-by-step process?
The required documents and process vary slightly depending on whether you're buying in restricted or unrestricted zones.
Essential Documents Required:
- Valid passport and tourist visa (FMM)
- RFC (Mexican tax ID number) - obtained in Mexico
- Proof of income or bank statements
- Apostilled birth certificate (if setting up fideicomiso)
- Power of attorney (if not present for closing)
Step-by-Step Purchase Process:
- Find a property and negotiate price
- Sign promissory purchase agreement with 5-10% deposit
- Obtain RFC tax number from Mexican tax office
- Hire a notary public and real estate attorney
- Conduct title search and due diligence
- Set up fideicomiso (if in restricted zone)
- Obtain property appraisal
- Sign final deed (escritura) with notary
- Pay all taxes and fees
- Register property with Public Registry
The entire process typically takes 30-90 days depending on financing and document preparation.
Do I need to hire a Mexican lawyer or notary to complete a property transaction?
Yes, hiring a notary public (Notario PĂșblico) is legally required for all real estate transactions in Mexico.
The notary public is a government-appointed lawyer who acts as an impartial party to ensure the transaction is legal and properly documented. They verify the property title, calculate taxes, prepare the deed, and register the property.
While the notary is neutral, hiring your own independent lawyer is strongly recommended to protect your interests. Your lawyer will review contracts, conduct due diligence, and advise on legal issues specific to foreign buyers.
Notary fees typically cost 1-1.5% of the property value, while independent legal fees range from $1,500-5,000 depending on the transaction complexity. As of June 2025, this represents standard market rates across Mexico.
It's something we develop in our Mexico property pack.
What are the common mistakes and legal pitfalls foreigners should avoid when buying property in Mexico?
The most serious mistake is attempting to buy ejido (communal) land, which is illegal for foreigners to own.
Major Legal Pitfalls to Avoid:
- Ejido Land Purchases: Communal land cannot be legally owned by foreigners even if sellers claim otherwise
- Insufficient Due Diligence: Failing to verify clear title, liens, or property taxes
- Using Unlicensed Professionals: Working with unqualified notaries or attorneys
- Ignoring Environmental Regulations: Coastal properties have strict development restrictions
- Improper Fideicomiso Setup: Using incorrect bank or incomplete documentation
- Tax Planning Oversights: Not understanding Mexican tax implications for foreign owners
- Currency Risk: Not hedging against peso fluctuations during transaction
Working with experienced professionals familiar with foreign buyer transactions significantly reduces these risks. Always verify all professionals are properly licensed and have good references from other foreign clients.
Is it possible for foreigners to get a mortgage in Mexico, and what are the current conditions?
Yes, some Mexican banks offer mortgages to foreigners, but options are limited compared to Mexican citizens.
As of June 2025, major banks like BBVA, Santander, and Banorte provide financing to qualified foreign buyers. Interest rates for foreigners typically range from 8-12% annually, higher than the 6-9% rates offered to Mexican citizens.
Down payment requirements are usually 30-50% for foreigners versus 20-30% for Mexican citizens. Maximum loan terms are typically 15-20 years, and the property often must be in the bank's approved areas.
| Bank | Foreigner Interest Rate | Down Payment Required |
|---|---|---|
| BBVA Mexico | 8.5-11.5% | 30-40% |
| Santander Mexico | 9-12% | 35-50% |
| Banorte | 8-11% | 30-45% |
| HSBC Mexico | 9.5-12% | 40-50% |
| Private Lenders | 10-15% | 25-40% |
Many foreign buyers use US-based lenders for cash purchases or portfolio loans, often securing better terms than Mexican banks.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Mexico versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.
What are all the taxes, fees, and hidden costs associated with buying and reselling property in Mexico?
Total closing costs for buying property in Mexico typically range from 5-8% of the purchase price.
Purchase Costs Breakdown:
- Acquisition Tax: 2-4% of property value (varies by state)
- Notary Fees: 1-1.5% of property value
- Property Registration: 0.5-1% of property value
- Legal Fees: $1,500-5,000 USD
- Fideicomiso Setup: $2,000-3,500 (restricted zones only)
- Property Appraisal: $300-500 USD
- Title Insurance: 0.5-1% (optional but recommended)
Ongoing Annual Costs:
- Property Tax (Predial): $100-500 USD annually
- Fideicomiso Maintenance: $500-800 annually (restricted zones)
- HOA Fees: $50-300 monthly (if applicable)
Selling Costs:
- Capital Gains Tax: 25% of gross sale or 35% of net profit
- Real Estate Commission: 6-7% of sale price
- Notary Fees: 1% of sale price
It's something we develop in our Mexico property pack.
Which Mexican cities or regions currently offer the best opportunities for foreign buyers?
The best opportunities for foreign buyers in Mexico vary by investment goals, with coastal areas offering higher rental yields and interior cities providing better value appreciation.
| City/Region | Rental Yield | Annual Appreciation | Best For |
|---|---|---|---|
| Tulum | 8-15% | 12-15% | Short-term rentals, eco-tourism |
| Playa del Carmen | 7-12% | 10-14% | Vacation rentals, tourism |
| Mexico City | 5-8% | 8-10% | Long-term rentals, business hub |
| MĂ©rida | 4-6% | 10-12% | Expat community, colonial charm |
| Puerto Vallarta | 6-9% | 7-9% | Established market, retirees |
| CancĂșn | 6-10% | 8-11% | Tourism, vacation rentals |
| Lake Chapala | 4-6% | 6-8% | Retirement, expat community |
As of June 2025, Tulum and the Riviera Maya continue to show the strongest growth, while Mexico City offers stable long-term appreciation with lower volatility.
Where do most foreign buyers choose to live or invest in Mexico, and why?
Most foreign buyers concentrate in established expat communities along the Caribbean coast and Pacific Riviera, plus select interior cities.
Top Foreign Buyer Destinations:
- Riviera Maya (Playa del Carmen, Tulum): 35% of foreign purchases - strong tourism, rental income
- Puerto Vallarta/Banderas Bay: 20% of foreign purchases - established expat infrastructure
- Los Cabos: 15% of foreign purchases - luxury market, US proximity
- MĂ©rida/Yucatan: 12% of foreign purchases - safety, culture, affordability
- Lake Chapala/Ajijic: 8% of foreign purchases - retiree haven, established community
- San Miguel de Allende: 5% of foreign purchases - colonial architecture, arts scene
- Mexico City: 3% of foreign purchases - business, urban lifestyle
- Other locations: 2% of foreign purchases
Foreign buyers choose these areas for established expat communities, English-speaking services, proximity to airports, healthcare facilities, and proven rental markets. The Caribbean coast dominates due to tourism infrastructure and strong property appreciation.
How do property prices compare across key Mexican cities and regions for foreign buyers?
Property prices in Mexico vary significantly by location, with coastal resort areas commanding premium prices and interior cities offering better value.
| Location | Average Price per sqm (USD) | Typical Condo Price Range | Villa/House Price Range |
|---|---|---|---|
| Tulum Beachfront | $4,000-6,000 | $200,000-800,000 | $500,000-2,000,000 |
| Playa del Carmen | $2,500-4,000 | $150,000-600,000 | $300,000-1,200,000 |
| Puerto Vallarta | $2,000-3,500 | $120,000-500,000 | $250,000-1,000,000 |
| Mexico City (premium areas) | $2,500-4,500 | $180,000-800,000 | $400,000-2,000,000 |
| MĂ©rida | $800-1,500 | $60,000-250,000 | $100,000-500,000 |
| Lake Chapala | $1,000-2,000 | $80,000-300,000 | $150,000-600,000 |
| CancĂșn | $1,800-3,200 | $100,000-450,000 | $200,000-900,000 |
Beachfront and ocean-view properties command 30-50% premiums over similar inland properties. As we reach mid-2025, prices in top destinations have increased 15-25% compared to 2023 levels, driven by strong US dollar demand and limited luxury inventory.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Buying property in Mexico without citizenship is entirely possible through established legal structures like fideicomiso trusts for coastal areas or direct ownership in interior regions.
Success requires working with qualified professionals, conducting thorough due diligence, and understanding the significant upfront costs and ongoing obligations involved in Mexican property ownership.
Sources
- Jaguar Tulum - Buying Property in Mexico with Dual Citizenship
- Wise - How to Buy Land in Mexico
- MexLaw - Frequently Asked Questions
- TheLatinvestor - Risks of Buying Property in Mexico
- Mexico Living - Pitfalls of Buying Property
- Plalla - Mortgage for Foreigners in Mexico
- TheLatinvestor - Mexico Property Buying Guide
- TheLatinvestor - Buying Property in Mexico as American
- Global Property Guide - Mexico Rental Yields
- TheLatinvestor - Buying Condos in Mexico