Can Americans buy property in Mexico City?

Authored by the expert who managed and guided the team behind the Mexico Property Pack

Yes, the analysis of Mexico City's property market is included in our pack

Who is the author of this content?

THELATINVESTOR

A team specialized in real estate investing in Latin America (Mexico, Brazil, Colombia, 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 Monterrey. 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 Americans legally buy property in Mexico City or are there any restrictions compared to locals?

Americans can legally buy property in Mexico City with full ownership rights and no restrictions compared to Mexican citizens.

Mexico City is located outside the restricted zone, which only applies within 50 kilometers of the coast or 100 kilometers of international borders. Since Mexico City sits inland and away from these boundaries, foreigners can own property directly in their own name through fee simple ownership, the same as Mexican nationals.

The only properties Americans cannot purchase are ejido or communal lands, but this restriction applies equally to all buyers, including Mexican citizens. Standard residential and commercial properties in Mexico City are fully available to American buyers with identical ownership rights.

Mexican property law treats American buyers the same as local citizens once the transaction is complete. You receive the same legal protections, can sell the property freely, and can pass it to heirs without additional restrictions.

This direct ownership structure means no trust arrangements or additional legal entities are required, making Mexico City property purchases more straightforward than coastal areas where fideicomiso trusts are mandatory for foreigners.

Are there any specific residency or visa requirements for Americans who want to purchase real estate in Mexico City?

No residency or special visa requirements exist for Americans buying property in Mexico City.

You can purchase property while visiting on a standard tourist visa (FMM), which allows stays up to 180 days. Many American buyers complete their entire property purchase during a single tourist visit without needing any form of Mexican residency.

However, you must obtain a Mexican tax identification number (RFC) for the purchase process and ongoing tax obligations. This RFC can be obtained regardless of your residency status and is required for property registration and annual tax filings.

While residency isn't required for purchasing, obtaining temporary or permanent Mexican residency becomes beneficial if you plan to live in the property, generate rental income, or spend significant time in Mexico. Resident status can improve mortgage qualification chances and provide other long-term benefits.

The financial requirements for Mexican residency include demonstrating monthly income of approximately $2,700 USD for temporary residency or $4,500 USD for permanent residency, but these are separate from property purchase requirements.

Do Americans need to be physically present in Mexico during the property buying process, or can it be done remotely?

Physical presence in Mexico is not required to complete a property purchase, though most buyers visit at least once to view properties.

The entire legal process can be managed remotely using a power of attorney (poder) granted to a trusted representative, typically your attorney or real estate agent in Mexico. This power of attorney must be notarized and apostilled in the United States before being recognized in Mexico.

Remote transactions work through digital document signing, video calls for property viewing, and electronic fund transfers. Your representative can attend notary appointments, sign documents on your behalf, and complete the registration process at the Public Property Registry.

However, visiting Mexico at least once is highly recommended to personally inspect properties, meet with your legal team, and understand the local market conditions. Many buyers find that initial visits help them make more informed decisions about neighborhoods and property conditions.

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

What documents do Americans need to provide when purchasing property in Mexico City?

Americans must provide specific documentation to complete a Mexico City property purchase.

Document Type	Requirement	Purpose
Valid US Passport	Mandatory	Legal identification and nationality verification
Tourist Visa (FMM)	Required for visitors	Legal entry status documentation
Mexican Tax ID (RFC)	Mandatory	Tax registration and property ownership
Proof of Address	Required	Utility bill or bank statement from US residence
Bank Statements	Mandatory	Proof of funds for purchase and closing costs
Purchase Agreement	Required	Signed promesa de compra-venta with seller
Power of Attorney	If buying remotely	Authorizes representative to act on your behalf

Is it mandatory for Americans to hire a lawyer or notary, and what role do they play in the process?

A notary public (Notario Público) is mandatory for all Mexico City real estate transactions, while hiring a private lawyer is strongly recommended but not legally required.

The notary public is a government-appointed attorney who serves as an impartial third party to verify the property's legal status, ensure clear title, draft the deed (escritura), collect taxes and fees, and register the transaction with the Public Property Registry. The notary represents neither buyer nor seller but ensures legal compliance.

Private lawyers provide additional protection by conducting independent due diligence, reviewing contracts before signing, explaining legal implications in detail, and identifying potential issues the notary might miss. For foreign buyers unfamiliar with Mexican law, private legal counsel is essential protection.

Notary fees typically range from 0.5% to 1.5% of the purchase price, while private attorney fees usually cost $2,000 to $5,000 USD depending on transaction complexity. This dual legal structure provides comprehensive protection for American buyers.

The notary's role includes verifying the seller's legal right to sell, confirming no liens or debts exist against the property, calculating and collecting all applicable taxes, preparing the final deed, and ensuring proper registration with government authorities.

What are the step-by-step stages an American must follow to buy property in Mexico City?

The Mexico City property buying process follows eight distinct stages from initial property selection to final possession.

1. **Property Selection and Agent Engagement**: Work with a licensed real estate agent familiar with American buyers and Mexico City market conditions.2. **Offer Submission and Purchase Agreement**: Submit a written offer and sign a promesa de compra-venta (purchase agreement) with an earnest money deposit, typically 5-10% of the purchase price.3. **Due Diligence Period**: The notary conducts a comprehensive title search, property lien verification, and legal status confirmation while you arrange financing or fund verification.4. **Document Preparation**: Obtain your Mexican RFC tax ID, gather required documentation, and prepare bank statements showing proof of funds for the purchase.5. **Notary Selection and Appointment**: Choose a notary public (often recommended by your agent or attorney) and schedule the closing appointment.6. **Final Review and Deed Signing**: Review all documents with your attorney, sign the escritura (deed) before the notary, and transfer the remaining purchase funds.7. **Tax Payment and Registration**: Pay all applicable taxes, notary fees, and registration costs while the notary registers the deed with the Public Property Registry.8. **Property Transfer and Possession**: Receive the registered deed, obtain property keys, and take legal possession of your Mexico City property.

How does the property buying process and ownership differ for Americans compared to Mexican citizens or other foreign nationals?

The property buying process in Mexico City is identical for Americans, Mexican citizens, and other foreign nationals, with no legal distinctions in the procedures or ownership rights.

All buyers follow the same legal requirements: mandatory notary public involvement, identical documentation needs, same tax rates and fees, and equal registration procedures. The notary treats all buyers equally regardless of nationality, and the Public Property Registry records ownership without nationality-based restrictions.

Ownership rights are identical across all buyer types in Mexico City. Americans receive the same fee simple ownership as Mexican citizens, can sell freely without additional permissions, face identical annual property tax obligations, and enjoy equal legal protections under Mexican property law.

The only practical differences occur in restricted coastal and border zones where foreign nationals must use fideicomiso bank trusts, but this doesn't apply to Mexico City. All buyers in Mexico City, regardless of nationality, can own property directly in their own name.

Mortgage availability represents the main practical difference, as Mexican banks often prefer lending to residents or citizens, making cash purchases more common among foreign buyers including Americans.

What taxes, fees, and ongoing fiscal obligations should Americans expect when buying and owning property in Mexico City?

American buyers face several taxes and fees during purchase, plus ongoing annual obligations for Mexico City property ownership.

Cost Type	Rate/Amount	When Paid
Acquisition Tax	2-4% of purchase price	At closing
Notary Fees	0.5-1.5% of purchase price	At closing
Registration Fees	0.3-0.8% of purchase price	At closing
Annual Property Tax (Predial)	0.1-0.3% of assessed value	Annually
Municipal Services	$100-250 USD annually	Annually
Capital Gains Tax	Up to 35% on profit	When selling
Legal/Attorney Fees	$2,000-5,000 USD	At closing

Can Americans get a mortgage in Mexico, and if so, what are the typical interest rates, terms, and tips to qualify?

Americans can obtain mortgages in Mexico, but options are limited compared to cash purchases, which represent about 70% of foreign buyer transactions.

Current mortgage rates for foreigners range from 9% to 11% APR, significantly higher than US rates but competitive within the Mexican market. Loan terms typically extend 15 to 30 years with loan-to-value ratios between 50% and 70%, though some lenders offer up to 90% LTV for Mexican residents.

Several lenders specialize in cross-border mortgages for Americans, including Moxi, Mexlend, and Yave, which offer financing specifically designed for non-resident foreign buyers. Traditional Mexican banks like BBVA and Santander also provide foreign buyer programs but with stricter requirements.

Qualification requirements include proof of US income through tax returns and bank statements, US credit report and score verification, debt-to-income ratio below 43%, substantial down payment (typically 30-50%), and sometimes Mexican residency status for better terms.

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

Which neighborhoods in Mexico City are the most attractive to American buyers based on lifestyle, safety, rental yields, and future value growth?

Seven neighborhoods consistently attract American buyers in Mexico City based on safety, lifestyle amenities, investment potential, and cultural appeal.

**Polanco** leads as the top choice for American professionals and investors, offering luxury shopping, embassy district security, international business centers, and premium restaurants. Property values remain strong with rental yields around 4-6% annually for quality apartments.**Condesa** attracts younger Americans and artists with its bohemian atmosphere, walkable tree-lined streets, vibrant nightlife, numerous cafes and parks, plus strong short-term rental potential for investors seeking higher yields.**Roma Norte** appeals to Americans seeking authentic Mexican culture combined with modern amenities, featuring art galleries, trendy restaurants, historic architecture, and excellent connectivity to other city areas.**Santa Fe** serves American business executives with modern high-rise living, corporate headquarters proximity, luxury amenities, shopping centers, and newer construction meeting international standards.**Coyoacán** offers Americans a quieter, more traditional Mexican experience with cobblestone streets, historic sites, family-friendly environment, and lower property prices with growth potential.**San Ángel** provides colonial charm for Americans appreciating history and culture, featuring weekend art markets, prestigious universities, tranquil residential streets, and architectural preservation.**Zona Rosa** attracts Americans seeking central location and nightlife, offering LGBTQ+-friendly environment, international restaurants, hotel zone proximity, and diverse housing options.

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 the current average property prices in different areas of Mexico City, and how do they compare regionally across Mexico?

As of June 2025, Mexico City property prices average $2,473 USD per square meter, with significant variation between neighborhoods and property types.

Premium neighborhoods command substantially higher prices, with Polanco and Bosque de Chapultepec exceeding $4,935 USD per square meter for luxury properties. Mid-tier areas like Roma and Condesa typically range from $2,200 to $3,500 USD per square meter depending on specific location and property condition.

New developments across Mexico City average $3,003 USD per square meter, while second-hand properties average $2,191 USD per square meter, reflecting the premium buyers pay for modern construction and amenities.

Regionally, Mexico City prices remain competitive compared to other major Mexican markets. Monterrey averages $3,651 USD per square meter, making it more expensive than Mexico City for comparable properties. Guadalajara prices average $2,607 USD per square meter, similar to Mexico City levels.

Coastal resort areas like Playa del Carmen and Puerto Vallarta often exceed Mexico City prices for comparable quality, while secondary cities like Puebla and Mérida offer significantly lower prices ranging from $1,200 to $1,800 USD per square meter.

What are the most common mistakes Americans make when buying property in Mexico City, and how can they avoid them?

American buyers commonly make seven critical mistakes that can result in financial losses or legal complications in Mexico City property purchases.

1. **Skipping Professional Due Diligence**: Many Americans rush purchases without proper title verification, property lien searches, or legal status confirmation. Always hire qualified attorneys and allow notaries adequate time for comprehensive due diligence.2. **Underestimating Total Costs**: Buyers often budget only for the purchase price, ignoring closing costs that typically add 5-8% to the total investment. Factor in acquisition taxes, notary fees, registration costs, and legal fees from the beginning.3. **Avoiding Professional Legal Help**: Some Americans attempt to navigate the process without qualified legal representation, risking contract issues or regulatory violations. Always engage experienced real estate attorneys familiar with foreign buyer requirements.4. **Ignoring Tax Obligations**: Buyers frequently overlook annual property taxes, potential capital gains taxes, and ongoing municipal fees. Understand all fiscal obligations before purchasing and budget for annual costs.5. **Assuming Easy Mortgage Access**: Many Americans expect US-style mortgage availability and terms, leading to financing disappointments. Plan for cash purchases or research foreign buyer lending options early in the process.6. **Neglecting Property Security**: Americans often fail to properly secure unoccupied properties, risking squatter occupation or vandalism. Establish reliable property management or security arrangements before purchase completion.7. **Rushing Neighborhood Selection**: Buyers sometimes choose areas based on limited research or single visits, missing important factors like noise levels, transportation access, or future development plans. Spend adequate time researching and visiting different neighborhoods at various times.

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

Conclusion

Americans enjoy full property ownership rights in Mexico City with straightforward legal processes, no residency requirements, and identical protections as Mexican citizens. The purchase process involves mandatory notary public oversight, standard documentation requirements, and total costs typically ranging 5-8% of the purchase price. While mortgage options exist for foreign buyers, cash purchases remain more common due to simpler qualification requirements. Prime neighborhoods like Polanco, Condesa, and Roma offer Americans attractive lifestyle amenities, strong investment potential, and established expat communities. Success requires professional legal guidance, comprehensive due diligence, and realistic budgeting for all associated costs and ongoing obligations.

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. Global Property Guide - Mexico Buying Guide
2. The Latin Investor - US Citizens Property Ownership Mexico
3. The Latin Investor - Mexico City Legal Requirements
4. Nomad Capitalist - Mexico City Real Estate Investment
5. The Latin Investor - Mexico Property Buying Guide
6. Mexperience - Closing Costs and Taxes Mexico
7. The Latin Investor - Property Taxes Mexico
8. Plalla - Mortgages for Foreigners Mexico
9. Global Property Guide - Mexico Price History
10. The Latin Investor - Mexico Property Pitfalls