Can foreigners 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?

THE LATINVESTOR

A team specialized in real estate investing in LATAM countries

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 City. If you'd like to learn more about us, you can check our presentation page.

How this content was created 🔎📝

At The Latinvestor, we explore the Mexico City 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 foreigners legally buy property in Mexico City or are there restrictions compared to locals?

Foreigners can legally buy property in Mexico City with the same rights as Mexican nationals.

Mexico City is not classified as a restricted zone, which means international buyers can purchase property through direct ownership without requiring a fideicomiso (bank trust). This direct ownership provides complete property rights, including the ability to sell, rent, or transfer the property without additional intermediaries.

The restricted zone rules only apply to properties within 50 kilometers of the coastline or 100 kilometers of international borders. Since Mexico City is located well inland and away from these restricted areas, foreigners enjoy full ownership rights identical to Mexican citizens.

As of September 2025, Mexico maintains one of the most open property markets in Latin America for foreign investment. There are no nationality quotas, investment minimums, or special permits required beyond standard transaction documentation.

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

Are there specific residency or visa requirements to own property as a foreigner?

No residency or visa requirements exist for foreigners purchasing property in Mexico City.

Even tourists holding a standard 180-day visitor permit can legally buy property. Mexican law does not require permanent residency, temporary residency, or any specific visa status to complete a real estate transaction. This makes Mexico City particularly attractive for international investors who may not plan to relocate permanently.

However, foreigners must obtain a Mexican tax identification number (RFC) to complete the purchase and register ownership. This RFC can be obtained through a legal representative if the buyer is not physically present in Mexico, streamlining the process for remote purchases.

The RFC serves as your official tax identifier for all property-related transactions, including annual property tax payments and future sales. Your attorney or notary can assist with RFC registration during the purchase process.

Do foreigners need to be physically present in Mexico during the purchase process, or can it be handled remotely?

Property purchases in Mexico City can be completed entirely remotely through proper legal representation.

Most transaction steps including property selection, price negotiation, due diligence, and contract preparation can be handled online or through a trusted legal representative. For the final closing, buyers have two options: attend in person or grant a notarized and apostilled Power of Attorney (POA) to a representative.

The POA process typically costs between $500-$1,500 and takes 2-4 weeks to complete. The document must be notarized in your home country and receive an apostille certification before being recognized by Mexican authorities. Your Mexican attorney can guide you through the specific POA requirements for real estate transactions.

Remote closings have become increasingly common, especially among North American buyers. Digital communication tools allow buyers to review documents, approve contracts, and coordinate fund transfers without traveling to Mexico City.

What is the step-by-step process for buying property, and which documents are required?

The Mexico City property purchase process follows eight essential steps with specific documentation requirements.

Step	Action Required	Key Documents
1. Property Search	Find and evaluate properties	Property listings, market analysis
2. Offer & Negotiation	Submit formal offer	Letter of intent, financial proof
3. Due Diligence	Verify title and legal status	Title certificate, lien search, permits
4. Purchase Contract	Sign binding agreement	Sale-purchase agreement, deposit
5. Financing Setup	Arrange mortgage if needed	Bank documents, income verification
6. Final Preparation	Complete legal documentation	RFC tax ID, appraisal, insurance
7. Notary Closing	Execute final transfer	All previous docs, funds transfer
8. Registration	Record ownership officially	Deed registration with Public Registry

Is hiring a lawyer mandatory for foreigners, or just highly recommended?

Hiring an independent real estate lawyer is highly recommended but not legally mandatory for foreign buyers in Mexico City.

Mexican law requires all real estate transactions to be processed through a notary public (notario público), who serves as both a legal authority and government representative. However, the notary's role is to register and certify the transaction legally, not to represent your interests as the buyer.

An independent lawyer provides crucial services including due diligence investigations, contract review, title searches, and protection against fraud or legal disputes. Given the complexity of Mexican property law and potential language barriers, legal representation significantly reduces transaction risks for foreign buyers.

Many experienced foreign investors consider legal counsel essential rather than optional. The cost of legal representation typically ranges from $1,000-$3,000, which represents valuable insurance against costly mistakes that could far exceed legal fees.

What are the typical taxes, fees, and closing costs when purchasing property, and what taxes apply when selling?

Total closing costs for property purchases in Mexico City typically range from 4-7% of the property value.

Acquisition tax varies by property value and location, generally ranging from 2-4.5% of the purchase price. Notary and registration fees add another 1-2% of the property value. Additional costs include appraisals, legal fees, and document preparation.

Annual property tax in Mexico City remains relatively low at 0.1-1.5% of the assessed property value, depending on the specific neighborhood and property type. This ongoing cost is significantly lower than many other major cities globally.

When selling property, capital gains tax applies at 25% on the profit, though exemptions exist for primary residences. Sellers who have owned property for more than three years and used it as their primary residence may qualify for reduced tax rates or complete exemptions.

Properties in restricted zones require additional fideicomiso setup costs of $1,000-$2,500, though this doesn't apply to Mexico City purchases.

Can foreigners get a mortgage in Mexico, and if so, what banks offer them, what rates apply, and what are the conditions?

Foreigners can obtain mortgages in Mexico through several specialized lenders and traditional banks.

Banks and institutions offering foreign mortgages include Moxi, MortgageHub, HIR Casas, Tu Casa Express, SOC CAF, Creditaria, and Kredi. These lenders specifically cater to international buyers and understand the unique requirements for non-resident financing.

Interest rates for foreign buyers average around 9% annually, with loan terms ranging from 10-30 years. Loan-to-value ratios typically range from 70-90%, depending on the lender and borrower qualifications. Some institutions offer financing in both Mexican pesos and US dollars.

Requirements include a valid passport, proof of income, credit history from your home country, and appropriate migration status. Some lenders require at least temporary Mexican residency, while others accommodate non-residents, particularly North American buyers.

Mexican law mandates that all mortgages include life insurance, unemployment insurance, and property insurance. These protections are automatically included in loan packages, providing additional security for both lenders and borrowers.

What are the common mistakes and pitfalls foreigners make when buying property in Mexico City?

The most costly mistake foreigners make is proceeding without independent legal counsel beyond the required notary.

1. **Inadequate due diligence**: Failing to verify clear title, existing liens, or outstanding debts on the property2. **Misunderstanding restricted zone rules**: Confusion about fideicomiso requirements and direct ownership rights3. **Underestimating total costs**: Not accounting for all taxes, fees, and ongoing expenses4. **RFC registration delays**: Postponing tax ID registration, which delays closing and ownership transfer5. **Documentation gaps**: Incomplete paperwork or missing apostille certifications for foreign documents6. **Local regulation ignorance**: Not understanding neighborhood restrictions for rental properties or renovations7. **Currency risk oversight**: Failing to consider peso-dollar exchange rate fluctuations in financing decisions8. **Community fee surprises**: Overlooking homeowner association fees or development maintenance costs

Many of these pitfalls can be avoided through proper preparation and professional guidance. It's something we analyze in our Mexico City property pack.

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 neighborhoods in Mexico City and other popular regions are the most attractive for foreigners to live in, rent out, or invest for capital appreciation?

Polanco stands as the premier neighborhood for foreign investment, offering luxury living and strong capital appreciation potential.

Polanco commands the highest property values in Mexico City, with prices exceeding 100,000 MXN per square meter. The area hosts numerous embassies, multinational corporations, and high-end shopping, making it attractive to both residents and investors. Rental demand remains consistently strong among executives and diplomatic personnel.

Condesa-Roma appeals to young professionals and creative industries, with property prices ranging from 65,000-75,000 MXN per square meter. This trendy area offers excellent rental yields due to its vibrant nightlife, restaurants, and cultural attractions. The neighborhood attracts both long-term tenants and short-term rental guests.

Juárez provides a balanced option combining historic charm with modern amenities, priced at 55,000-65,000 MXN per square meter. The area has become increasingly popular among digital nomads and remote workers seeking central location with character.

Beyond Mexico City, coastal regions like Riviera Maya, Puerto Vallarta, and Los Cabos offer vacation rental opportunities with yields of 8-15% annually. These markets benefit from consistent tourism and strong demand from North American visitors.

What do the latest reports say about liveability, rental yields, tourism numbers, and growth forecasts in Mexico City and other major markets?

Mexico City's real estate market shows strong fundamentals with growing job opportunities and cultural demand driving property values upward.

Long-term rental yields in popular Mexico City districts range from 5-7% annually, with neighborhoods like Condesa-Roma and Polanco leading performance. The city's expanding job market, particularly in technology and finance sectors, supports steady rental demand from young professionals and international workers.

Coastal markets demonstrate even stronger yield potential, with short-term rental properties in Riviera Maya and Los Cabos achieving 8-15% annual returns. Tourism occupancy rates exceed 70% in peak areas, supported by consistent growth in international visitor numbers, particularly from the United States and Canada.

Growth forecasts for 2025-2026 remain positive, driven by infrastructure improvements, rising interest from US and Canadian buyers, and government reforms favoring foreign investment. New airport developments and improved transportation links are expected to further boost property values in previously underserved areas.

Liveability rankings consistently favor neighborhoods like Condesa-Roma, Polanco, and Santa Fe for their amenities, safety ratings, and international community presence. These areas offer the best combination of investment potential and quality of life for foreign residents.

How do property prices currently break down by neighborhood in Mexico City and by other Mexican cities or regions?

Mexico City property prices vary significantly by neighborhood, with luxury areas commanding premium valuations.

Neighborhood/Region	Average Price per m² (MXN)	Property Type
Polanco	100,000+	Luxury condos, penthouses
Condesa-Roma	65,000-75,000	Trendy apartments, lofts
Nuevo Polanco	60,000-80,000	Modern high-rises
Santa Fe	55,000-70,000	Business district housing
Juárez	55,000-65,000	Historic renovations
Mexico City Overall	60,955 (apartments)	City-wide average
Mexico City Houses	39,952	Single-family homes

Where do foreigners typically settle in Mexico, and why are those areas favored?

Foreign residents in Mexico gravitate toward three distinct settlement patterns based on lifestyle preferences and investment goals.

Urban professionals typically choose Mexico City neighborhoods like Polanco, Condesa-Roma, and Nuevo Polanco for their cultural amenities, safety standards, and business infrastructure. These areas provide easy access to international schools, healthcare facilities, and corporate environments that appeal to expatriate families and digital nomads.

Coastal lifestyle seekers concentrate in Riviera Maya, Puerto Vallarta, and Los Cabos for year-round climate, beach access, and strong rental income potential. These markets offer established expat communities, English-speaking services, and proximity to North American flight connections.

Retirees and cultural enthusiasts often select colonial towns like San Miguel de Allende for aesthetic appeal, lower living costs, and established international communities. These locations provide historic charm, cultural activities, and healthcare services tailored to foreign residents.

Location preferences are primarily driven by infrastructure quality, community safety, investment return potential, and accessibility from North America. Areas with direct flight connections to major US and Canadian cities consistently attract higher foreign investment and settlement rates.

The detailed breakdown is covered in our Mexico City 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. Global Property Guide - Mexico Buying Guide
2. Veles Club - Mexico Property Investment
3. The Latinvestor - Buy Property Mexico Without Citizenship
4. Taxes for Expats - Buying Property in Mexico
5. The Latinvestor - Mexico Property Buying Guide
6. The Latinvestor - How to Buy Home Mexico
7. Mexperience - Property Buying Procedures
8. Lawyers Mexico - Buy Property Guide
9. The Latinvestor - Mexico Real Estate for Foreigners
10. Plalla - Mortgage for Foreigners in Mexico