How does buying property in Mexico work with dual citizenship?

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

Who is the author of this content?

THELATINVESTOR

A team specialized in real estate investing in Latin American countries (Mexico, Colombia, Brazil, Argentina, etc.).

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Mexico. If you'd like to learn more about us, you can check our presentation page.

How this content was created 🔎📝

At TheLatinvestor, we explore the Mexican real estate market every day. Our team doesn't just analyze data from a distance—we're actively engaging with local realtors, investors, and property managers in cities like Mexico City, Guadalajara, and Cancún. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

These observations are originally based on what we've learned through these conversations and our observations. But it was not enough. To back them up, we also needed to rely on trusted resources

We prioritize accuracy and authority. Trends lacking solid data or expert validation were excluded.

Trustworthiness is central to our work. Every source and citation is clearly listed, ensuring transparency. A writing AI-powered tool was used solely to refine readability and engagement.

To make the information accessible, our team designed custom infographics that clarify key points. We hope you will like them! All illustrations and media were created in-house and added manually.

Can I buy property in Mexico with dual citizenship, and does it matter which two nationalities I hold?

Yes, you can absolutely buy property in Mexico with dual citizenship, but the specific nationalities you hold make a significant difference in your property rights.

If you are a dual citizen with Mexican citizenship, you have exactly the same property ownership rights as any Mexican citizen. This means you can buy property anywhere in Mexico, including within the restricted zones that extend 50 kilometers from the coast and 100 kilometers from international borders. You can purchase property directly in your name without needing a fideicomiso (bank trust) or Mexican corporation.

If you are a dual citizen without Mexican citizenship—for example, holding U.S. and Canadian passports—you are still considered a foreigner under Mexican law. This means you must follow all the standard foreign buyer regulations, including using a fideicomiso for properties in restricted zones and paying the associated setup and annual maintenance fees.

The key distinction is whether one of your citizenships is Mexican, not what your other nationality is. A dual Mexican-German citizen has the same property rights as a dual Mexican-American citizen.

Are there any restrictions on property ownership in Mexico for foreigners with dual citizenship compared to Mexican citizens?

Dual citizens with Mexican citizenship face zero restrictions on property ownership and enjoy the same rights as any Mexican citizen.

Dual citizens without Mexican citizenship must navigate the same restrictions as any foreign buyer. In restricted zones, they cannot own property directly and must use a fideicomiso trust, where a Mexican bank holds the title on their behalf. The trust allows them to use, occupy, rent, sell, and inherit the property, but the bank remains the legal owner.

All foreign buyers, including dual citizens without Mexican citizenship, are prohibited from purchasing ejido land, which is communal land that represents about 60% of Mexico's territory. Ejido land cannot be sold to foreigners under any circumstances.

Outside restricted zones, dual citizens without Mexican citizenship can own property directly in their names, just like Mexican citizens. The restrictions only apply to coastal and border areas where the government maintains foreign ownership limitations for national security reasons.

Do I need to have Mexican residency or a specific visa status to purchase property in Mexico with dual citizenship?

No specific visa or residency status is required to purchase property in Mexico, regardless of your citizenship status.

You can buy property while visiting Mexico on a tourist visa, which typically allows stays of up to 180 days. Many buyers complete their purchases during short trips to Mexico, handling much of the paperwork remotely before and after their visit.

However, if you plan to live in Mexico for more than 180 days per year, you will need to apply for temporary or permanent residency separately from your property purchase. Owning property in Mexico does not automatically grant you residency rights, even if you hold dual citizenship.

For dual citizens with Mexican citizenship, residency is automatic since you are already a Mexican citizen. For dual citizens without Mexican citizenship, property ownership can actually help support your residency application by demonstrating ties to Mexico, but it doesn't guarantee approval.

Do I have to be physically present in Mexico to buy property, or can I handle everything remotely with dual citizenship?

You do not need to be physically present in Mexico throughout the entire property buying process, and many transactions are completed largely remotely.

Most steps can be handled remotely by granting power of attorney to a qualified Mexican lawyer or trusted representative who can sign documents and complete transactions on your behalf. This includes signing the preliminary purchase agreement, conducting due diligence, and even the final closing in some cases.

However, you may need to visit Mexico at least once for specific tasks like opening a Mexican bank account, which is often required for property purchases and ongoing expenses. Some banks require in-person visits for account opening, though this is becoming less common as banking procedures modernize.

The power of attorney process requires careful selection of your representative and clear documentation of your instructions. Many buyers prefer to be present for the final closing ceremony at the notary's office, even if it's not strictly required, to ensure everything proceeds smoothly.

What documents do I need to prepare as a dual citizen to complete a property purchase in Mexico step by step?

The required documents for property purchase in Mexico vary slightly based on your citizenship status but follow a standard process.

Essential identification documents include your valid passport and, if you hold Mexican citizenship, your Mexican passport or birth certificate to prove your citizenship status. You'll also need proof of address from your home country, such as a recent utility bill or bank statement.

You must obtain a Mexican tax ID number (RFC), which is required for property registration and tax purposes. This can often be obtained through your lawyer or at Mexican consulates abroad. Proof of funds documentation, including bank statements showing the source of your purchase money, is mandatory for anti-money laundering compliance.

The purchase process requires a signed initial purchase agreement with proof of earnest money deposit, typically 10-30% of the purchase price. Your lawyer will conduct a title search and due diligence to verify the property's legal status, check for liens, and confirm clear ownership.

The final step involves signing the escritura pública (public deed) before a notary public and registering the property with the Public Registry of Property. For dual citizens without Mexican citizenship buying in restricted zones, additional documents include fideicomiso paperwork and permits from the Ministry of Foreign Affairs.

It's something we develop in our Mexico property pack.

Is hiring a lawyer mandatory or just highly recommended when buying property in Mexico as a dual citizen?

Hiring a lawyer is not legally mandatory but is strongly recommended for property purchases in Mexico, regardless of your citizenship status.

While a notary public (notario) is required to finalize the transaction, they act as an impartial government official rather than your representative. The notary's role is to ensure the transaction complies with Mexican law, not to protect your specific interests or negotiate on your behalf.

A qualified real estate lawyer will protect your interests by conducting thorough due diligence, reviewing all contracts, negotiating terms, and ensuring the transaction is legally sound. They can identify potential issues like unpaid property taxes, liens, or title problems that could cost you thousands later.

This legal representation becomes especially crucial if you're not fluent in Spanish or unfamiliar with Mexican real estate law. Lawyers familiar with dual citizenship issues can also help navigate the specific requirements for your citizenship status and ensure you're maximizing any advantages your dual citizenship provides.

Legal fees typically range from $1,000 to $3,000, which represents valuable insurance against much larger potential losses from legal problems or fraudulent transactions.

Are there taxes, fees, or hidden costs that apply specifically to foreigners or dual citizens when buying and reselling property?

Property ownership costs in Mexico vary significantly based on your citizenship status and where you buy.

All property owners must pay annual property taxes (predial), which are relatively low at typically 0.1-0.3% of the property's cadastral value. These taxes apply equally to all owners regardless of citizenship.

Dual citizens without Mexican citizenship buying in restricted zones face additional costs including fideicomiso setup fees of $500-$1,500 and annual maintenance fees of $400-$600. Dual citizens with Mexican citizenship avoid these costs entirely since they can buy directly.

Universal purchase costs include notary fees (0.5-1.5% of purchase price), registration tax (1-2%), legal fees ($1,000-$3,000), and real estate agent commissions (2-4%). These apply to all buyers.

Cost Type	Dual Citizen (Mexican)	Dual Citizen (Non-Mexican)
Annual Property Tax	0.1-0.3% of cadastral value	0.1-0.3% of cadastral value
Fideicomiso Setup	$0	$500-$1,500 (restricted zones)
Annual Trust Fees	$0	$400-$600 (restricted zones)
Notary Fees	0.5-1.5% of purchase price	0.5-1.5% of purchase price
Registration Tax	1-2% of purchase price	1-2% of purchase price
Legal Fees	$1,000-$3,000	$1,000-$3,000
Agent Commission	2-4% of purchase price	2-4% of purchase price

Hidden costs may include unpaid utility bills from previous owners, HOA fees, insurance premiums, and currency exchange fluctuations if you're buying with foreign currency.

Can I get a mortgage as a dual citizen buying in Mexico, and what are the typical conditions, rates, and tips to get approved?

Dual citizens can apply for mortgages in Mexico, though the process and requirements vary based on your citizenship status and income source.

Mexican banks typically require proof of income, credit history, identification, and sometimes proof of residency. Dual citizens with Mexican citizenship often have easier access to local bank financing, especially if they have Mexican credit history and local income.

Interest rates in Mexico range from approximately 5% to 14% depending on the lender, your creditworthiness, and current market conditions. Loan terms typically range from 5 to 30 years, with down payments of 20-30% commonly required.

Some lenders like Yave specifically cater to foreign buyers and don't require Mexican residency or a CURP/RFC for approval. These specialized lenders may accept foreign income and credit reports, making them attractive options for dual citizens living abroad.

Tips for mortgage approval include maintaining a strong credit score in your home country, providing comprehensive income documentation, and considering lenders that specialize in foreign buyer financing. Having a larger down payment can also improve your approval chances and interest rates.

Alternative financing options include seller financing, private lenders, or using equity from properties in your home country to purchase cash and potentially refinance later through 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.

Which areas in Mexico are considered the best for dual citizens to invest in for living, renting out, or capital growth, and what are the latest insights on rental yields, tourism numbers, and market forecasts?

Mexico's real estate market in 2025 shows strong performance across several key metropolitan areas, with rental yields and growth potential varying significantly by location.

Mexico City continues to dominate as an investment destination with average rental yields of 5.74% and strong appreciation potential. The city's diverse economy, international business presence, and growing tech sector support consistent rental demand from both locals and expats.

Monterrey leads in rental yields at 6.32%, driven by its position as Mexico's industrial and business hub. The city attracts manufacturing investment and high-paying jobs, creating strong demand for quality housing and supporting property values.

Guadalajara offers attractive rental yields of 5.93% while maintaining lower purchase prices than Mexico City or Monterrey. The city's growing technology sector and cultural appeal make it increasingly popular with young professionals and international companies.

Tourist destinations like Cancún and the Riviera Maya provide opportunities for vacation rental income, though average rental yields are lower at 4.44% due to higher purchase prices. These markets benefit from Mexico's record tourism numbers, with over 45 million international visitors in 2024.

Expat-focused communities including Lake Chapala, San Miguel de Allende, and Mérida offer stable demand from retirees and remote workers. These markets provide consistent rental income and strong quality of life, though appreciation potential may be more limited.

As we reach mid-2025, market forecasts suggest continued growth in major metropolitan areas, with Mexico City and Monterrey expected to see 8-12% annual appreciation through 2026.

What's the price breakdown per region or city right now for property in Mexico, and how does that differ for foreigners or dual citizens?

Property prices in Mexico's major markets show significant variation as of June 2025, with costs generally rising in urban centers and popular expat destinations.

Mexico City averages $2,473 per square meter, with premium central neighborhoods reaching $4,935+ per square meter. The city's strong job market and international appeal continue driving price growth, with year-over-year increases of 10-15% in desirable areas.

Monterrey commands the highest average prices at $3,651 per square meter, with top neighborhoods exceeding $5,676 per square meter. The city's industrial boom and limited developable land contribute to premium pricing.

Guadalajara offers more affordable options at $2,607 per square meter on average, with upscale neighborhoods reaching $3,455+ per square meter. The city provides good value compared to Mexico City while maintaining strong growth prospects.

Coastal markets like Cancún and Puerto Vallarta average around $2,800 per square meter in central areas, with beachfront properties commanding significant premiums. These markets have seen 15-20% price appreciation over the past year due to increased domestic and international demand.

Mérida maintains more moderate pricing at $2,000-$2,500 per square meter, making it attractive for buyers seeking value in a growing market with strong quality of life.

Importantly, property prices do not differ based on citizenship status. Dual citizens with Mexican citizenship and foreign buyers pay the same market prices. The only difference is in ongoing ownership costs, where dual citizens with Mexican citizenship avoid fideicomiso fees in restricted zones.

It's something we develop in our Mexico property pack.

What common mistakes or pitfalls should dual citizens watch out for when buying property in Mexico?

The most critical mistake is failing to conduct thorough title verification and due diligence on the property's legal status.

Many buyers, particularly those with dual citizenship who feel more confident about their Mexican legal standing, skip comprehensive title searches. This can lead to purchasing property with existing liens, unpaid taxes, or ownership disputes that can cost tens of thousands to resolve.

Ignoring local zoning and land use restrictions represents another major pitfall. Some buyers purchase ejido or communal land thinking their dual citizenship provides special rights, but ejido land cannot be bought by anyone who isn't part of the ejido community, regardless of citizenship status.

Overlooking the total cost of ownership is particularly common among dual citizens without Mexican citizenship who focus on purchase price but underestimate ongoing costs. Annual fideicomiso fees, property taxes, HOA fees, and maintenance costs can add $1,000-$3,000+ annually to ownership expenses.

1. **Skipping legal representation**: Even dual citizens with Mexican citizenship benefit from hiring qualified real estate lawyers familiar with local market practices2. **Assuming citizenship provides universal advantages**: While Mexican citizenship eliminates restricted zone limitations, it doesn't protect against fraud or poor investment decisions3. **Ignoring tax implications**: Dual citizens often face complex tax obligations in multiple countries that require professional planning4. **Rushing the purchase process**: Even with citizenship advantages, thorough due diligence takes time and shouldn't be rushed5. **Inadequate currency planning**: Exchange rate fluctuations can significantly impact purchase costs and ongoing expenses for dual citizens living abroad

Will owning property in Mexico as a dual citizen trigger any tax obligations or reporting in either of my home countries?

Property ownership in Mexico as a dual citizen creates tax obligations that vary significantly based on your specific citizenship combination and residency status.

In Mexico, all property owners must pay annual property taxes (predial) regardless of citizenship status. If you become a Mexican tax resident by spending more than 183 days per year in Mexico, you'll be taxed on worldwide income and must report rental income from your Mexican property.

U.S. citizens with dual citizenship face the most complex obligations due to citizenship-based taxation. You must report worldwide income to the IRS, including Mexican rental income and capital gains from property sales. Foreign bank accounts over $10,000 require FBAR reporting, and foreign assets over $50,000 may trigger Form 8938 filing requirements.

The U.S.-Mexico tax treaty provides foreign tax credits to prevent double taxation, allowing you to offset Mexican taxes paid against U.S. tax obligations on the same income. However, you still must file all required reports and pay any remaining tax differences.

Canadian citizens with dual citizenship must report worldwide income if they remain Canadian tax residents, but Canada uses residence-based rather than citizenship-based taxation. If you establish Mexican tax residency and cut Canadian tax ties, you may avoid Canadian tax obligations on Mexican property income.

European Union citizens generally face residence-based taxation, meaning Mexican property income may only be taxable in their home country if they remain tax residents there. However, specific rules vary by country and may require professional tax advice.

As of June 2025, tax compliance requirements are becoming stricter, and professional tax planning is essential for dual citizens to avoid penalties and optimize their tax situation across multiple jurisdictions.

It's something we develop in our Mexico property pack.

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.

Sources

1. Jaguar Tulum - Buying Property in Mexico with Dual Citizenship
2. Mexico Living - Dual Citizenship Property Guide
3. Mexico Relocation Guide - Foreign Property Ownership Rules
4. Mexlaw - Real Estate Legal FAQ
5. Taxes for Expats - Buying Property in Mexico Guide
6. TheLatinvestor - American Property Buying Guide
7. Plalla - Mortgages for Foreigners in Mexico
8. Global Property Guide - Mexico Rental Yields
9. Global Property Guide - Mexico Price History
10. Taxes for Expats - Dual Citizenship Tax Guide