Can foreigners buy property in Tulum?

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

Yes, the analysis of Tulum'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 Tulum. 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 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 Tulum, Playa del Carmen, and Cancun. 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 Tulum or are there restrictions compared to locals?

Foreigners can legally purchase property in Tulum, but they face specific restrictions that locals do not encounter due to Mexico's constitutional limitations on foreign ownership in restricted zones.

Tulum falls within Mexico's restricted zone, defined as areas within 50 kilometers of any coastline or 100 kilometers of international borders. In these zones, foreigners cannot hold direct title to real estate as Mexican nationals can. Instead, foreign buyers must use a fideicomiso (bank trust) structure where a Mexican bank holds the legal title while the foreigner maintains all beneficial ownership rights.

Under the fideicomiso system, foreign owners retain complete control over their property including the rights to use, rent, modify, sell, or bequeath the property. The Mexican bank acts solely as a trustee and cannot make decisions about the property without the beneficiary's instructions. This system provides the same practical ownership benefits as direct title ownership.

Alternatively, foreigners can establish a Mexican corporation to hold property, though this approach is typically used for commercial investments or when purchasing multiple properties. The corporate route requires ongoing compliance with Mexican corporate law and may involve additional administrative costs.

As of September 2025, these legal structures remain the only viable options for foreign property ownership in Tulum's coastal areas.

Do foreigners need residency, a visa, or any special permit to purchase property in Mexico?

No residency status, permanent visa, or special immigration permit is required for foreigners to purchase property in Mexico, including Tulum.

Foreign buyers can complete property transactions while on tourist visas or even from outside Mexico entirely. The Mexican government does not link property ownership rights to immigration status, making real estate investment accessible to international buyers regardless of their residency plans. Tourist visa holders have the same property purchasing rights as permanent residents or Mexican citizens, subject only to the fideicomiso requirement in restricted zones.

However, buyers must obtain a Mexican tax identification number (RFC) and a permit from Mexico's Ministry of Foreign Affairs (Secretaría de Relaciones Exteriores - SRE) as part of the purchase process. These administrative requirements are separate from immigration status and can be obtained specifically for property transactions.

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

The RFC tax ID is essential for all property-related tax obligations and can be obtained through Mexican consulates abroad or locally in Mexico with proper documentation.

Is it necessary to be physically present in Mexico to complete a property purchase, or can it be done remotely?

Physical presence in Mexico is not mandatory for completing a property purchase, and many international buyers successfully close transactions remotely through proper legal representation.

Remote purchases require granting a power of attorney (POA) to a qualified legal representative in Mexico who can act on the buyer's behalf throughout the transaction process. The POA document must be properly notarized in the buyer's home country, apostilled according to Hague Convention requirements, and translated into Spanish by a certified translator.

The legal representative handles all aspects of the transaction including property inspections, due diligence, document review, negotiations with sellers, bank coordination for the fideicomiso setup, and attendance at the final closing with the Mexican notary public. However, buyers should ensure their representative is properly licensed and bonded to handle real estate transactions.

While remote closing is possible, many buyers choose to be present for the final signing to personally verify property conditions and ensure all documents are properly executed. This approach provides additional security and allows buyers to establish relationships with local service providers.

All financial transfers for remote purchases must comply with Mexican banking regulations and anti-money laundering requirements, which may require additional documentation to verify fund sources.

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

The foreign property purchase process in Tulum follows a structured eight-step procedure requiring specific documentation at each stage.

Step	Action Required	Key Documents
1. Property Selection	Identify property, negotiate terms, sign letter of intent	Purchase agreement, deposit receipt (1-5% of price)
2. Due Diligence	Verify clear title, check for liens, confirm zoning	Title certificate, no-lien certificate, property survey
3. Obtain Permits	Apply for SRE permit and RFC tax ID	Passport, proof of address, application forms
4. Establish Fideicomiso	Set up bank trust with Mexican financial institution	Bank trust agreement, trustee appointment
5. Property Appraisal	Obtain official valuation for tax purposes	Certified appraisal report
6. Final Contract	Sign purchase contract at Mexican notary public	Notarized deed, proof of payment
7. Payment & Taxes	Pay purchase price and all closing costs	Wire transfer confirmations, tax payment receipts
8. Registration	Register deed with local property registry	Registered deed, municipal registration

Essential documents include a valid passport, proof of income or funds source, Mexican RFC tax identification, proof of address from home country, and power of attorney if buying remotely. The SRE permit from Mexico's Foreign Ministry typically takes 2-4 weeks to obtain and costs approximately $150.

Professional legal representation is crucial throughout this process to ensure compliance with all requirements and protect the buyer's interests during each transaction phase.

Is hiring a lawyer mandatory for foreigners in real estate transactions, or just recommended?

Hiring a lawyer is not legally mandatory for foreign property purchases in Tulum, but it is strongly recommended due to the complexity of Mexican real estate law and the fideicomiso system.

Mexican law requires only a notary public (notario público) to formalize property transfers, and these notaries are neutral parties who cannot represent either buyer or seller interests. The notary's role is limited to verifying document authenticity, ensuring legal compliance, and registering the transaction with authorities.

A qualified real estate attorney provides essential services including comprehensive due diligence, title searches, contract review, fideicomiso setup guidance, and protection of buyer interests throughout the transaction. Lawyers also coordinate with other professionals such as real estate agents, banks, and government agencies to ensure smooth transaction completion.

Legal fees typically range from $2,000 to $5,000 depending on property value and transaction complexity. This investment often prevents costly mistakes such as purchasing properties with unclear titles, outstanding liens, or zoning violations that could result in much larger financial losses.

Given the substantial financial investment and legal complexities involved in foreign property ownership, most successful buyers view legal representation as essential insurance rather than an optional expense.

What are the taxes, fees, and closing costs involved in buying property in Tulum as a foreigner?

Foreign buyers in Tulum should budget approximately 6-7% of the property purchase price for total closing costs, with several mandatory taxes and fees comprising this amount.

The property acquisition tax increased to 4% of the purchase price in December 2024, representing the largest single closing cost component. This tax applies to all property transfers in the Tulum municipality and must be paid before deed registration.

Notary fees typically cost 1.5-2% of the property value and cover the notary public's services for document preparation, legal verification, and deed registration with local authorities. These fees are regulated by Mexican law and vary minimally between notaries.

Fideicomiso setup costs range from $1,000 to $2,500 depending on the bank and property value, plus annual trustee fees of several hundred dollars. Different Mexican banks offer varying fee structures, making it worthwhile to compare options during the selection process.

Additional costs include legal fees ($2,000-$5,000), property appraisal ($300-$500), SRE permit fees ($150), RFC registration, title insurance if desired, and various administrative fees. Translation costs for documents and power of attorney preparation add several hundred dollars for remote buyers.

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

Are there additional taxes or costs when reselling property as a foreign owner?

Foreign property owners face capital gains taxes and additional withholding requirements when reselling property in Tulum, with tax rates and exemptions differing from those available to Mexican residents.

Capital gains tax applies to the profit from property sales, calculated as the difference between purchase price (adjusted for inflation) and sale price. Non-resident foreigners typically face a 25% tax rate on capital gains, while Mexican residents may qualify for exemptions if the property served as their primary residence.

Mexican tax law requires withholding at the time of sale for non-resident sellers, meaning the notary public or buyer must retain a portion of sale proceeds to ensure tax compliance. This withholding can be substantial and may exceed the actual tax liability, requiring sellers to file returns to claim refunds.

Resale transaction costs include notary fees (1.5-2% of sale price), legal fees for document preparation and representation, and potential real estate agent commissions if professional marketing services are used. Property condition assessments and minor repairs may also be necessary to maximize sale value.

Proper tax planning before purchase can minimize resale tax burdens through legal structuring options and documentation of property improvements that increase cost basis for capital gains calculations.

Can foreigners access mortgages in Mexico, what are the rates and conditions, and are there tips to secure financing?

Foreigners can access mortgage financing in Mexico through multiple channels including Mexican banks, international lenders, developer financing, and private lending sources, though terms differ from domestic mortgages in most home countries.

1. **Mexican Bank Mortgages**: Major banks like BBVA, Santander, and Banorte offer foreigner mortgages with loan-to-value ratios of 70-80%, terms up to 20 years, and interest rates of 9-12% as of September 2025.2. **International Lenders**: Cross-border mortgage specialists provide financing backed by assets in the buyer's home country, often offering better rates of 5-7% but requiring substantial documentation.3. **Developer Financing**: New construction projects frequently offer in-house financing with competitive rates and flexible terms, particularly for pre-construction purchases.4. **Private Lenders**: Alternative financing sources provide quick approvals but typically charge higher interest rates of 12-15% for shorter terms.5. **Mortgage Broker Services**: Specialized brokers help foreigners navigate multiple lending options and documentation requirements for optimal financing terms.

Successful financing requires demonstrating stable income, maintaining good credit history, providing substantial down payments (20-30%), and preparing comprehensive financial documentation including tax returns, bank statements, and employment verification.

Many buyers find developer financing most accessible, while others prefer international lenders for better rates despite more complex approval processes.

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.

How do property prices in Tulum compare across neighborhoods, nearby towns, and the wider Riviera Maya region?

Tulum property prices vary dramatically across neighborhoods and development phases, with established areas commanding premium prices while emerging zones offer significant value opportunities.

Area	Average Condo Price	Average Villa Price	Key Characteristics
Aldea Zama	$301,000	$495,800	Established, walkable, reliable infrastructure
La Veleta	$100,000-$300,000	$200,000-$500,000	Trendy, growing expat community, development risks
Chemuyil	$232,000	$383,600	Family-oriented, quieter, stable growth
Riviera Tulum	$80,000	N/A	Exclusive development, limited inventory
Soliman Bay	$1,123,000	N/A	Beachfront luxury, premium location
South Tulum	$241,000	$530,000 (lots)	New development area, strategic growth
Tulum Pueblo	$150,000-$250,000	$300,000-$450,000	Authentic Mexican community, local rentals

Regional comparisons show Playa del Carmen offering similar or slightly lower prices with more established infrastructure and larger expat communities. Cancun commands higher prices for luxury beachfront properties but offers more robust tourism infrastructure and flight connectivity.

Emerging neighborhoods like Region 15 and Region 8 near the beach present higher risk-reward scenarios with potential for significant appreciation as infrastructure develops, while established areas like Aldea Zama provide stability and proven rental performance.

Which areas are most attractive for foreigners in terms of livability, rental yields, tourism demand, and long-term capital appreciation?

Different Tulum neighborhoods offer distinct advantages for foreign investors depending on their priorities for livability, rental income, or capital appreciation potential.

Aldea Zama represents the gold standard for balanced investment returns, offering high livability with walkable streets, reliable utilities, security, and established rental markets. Properties in this area generate steady rental yields of 7-9% while maintaining strong capital appreciation potential due to limited developable land and consistent demand from affluent tourists and expats.

La Veleta attracts investors seeking higher rental yields of 10-12% driven by growing digital nomad and expat communities. The area offers more affordable entry points and significant upside potential, though buyers must carefully evaluate individual developments for infrastructure quality and completion timelines.

Holistika and wellness-focused developments cater to Tulum's spiritual tourism market, generating premium rental rates from guests seeking authentic experiences. These properties often command 15-20% higher nightly rates than conventional rentals but may have more seasonal demand patterns.

Beachfront areas like Soliman Bay and premium hotel zone properties offer the highest capital appreciation potential but require substantial initial investments and face ongoing challenges with infrastructure and environmental regulations.

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

Tulum Pueblo provides authentic Mexican community living with lower purchase prices and steady local rental demand, though rental yields typically remain in the 6-8% range with more modest appreciation expectations.

What fiscal obligations do foreign owners have regarding rental income, property tax, and double taxation with their home country?

Foreign property owners in Tulum face Mexican tax obligations on rental income and property ownership, plus potential home country tax requirements that may be mitigated through double taxation treaties.

Rental income generated by foreign-owned properties is subject to Mexican income tax at a flat rate of 25% for non-residents, applied to gross rental income without deductions. Property owners must obtain an RFC tax identification number and file annual returns with Mexican tax authorities (SAT) reporting all rental income and expenses.

Annual property taxes (predial) in Tulum are relatively modest, typically ranging from $200-$800 per year depending on property value and municipality. These taxes fund local services and infrastructure and must be paid annually to avoid penalties and liens.

Double taxation treaties between Mexico and major countries including the United States, Canada, and most European Union nations allow foreign owners to credit Mexican taxes against their home country tax obligations. US citizens must report Mexican rental income on their US tax returns and can use Form 1116 to claim foreign tax credits for Mexican taxes paid.

Canadian residents similarly report Mexican rental income and claim foreign tax credits to avoid double taxation. European Union citizens should consult their specific country's tax treaty provisions with Mexico for applicable credit mechanisms.

Failure to comply with either Mexican or home country tax obligations can result in substantial penalties, making professional tax advice essential for foreign property owners generating rental income.

What are the common mistakes and pitfalls foreigners should avoid when buying property in Tulum?

Foreign buyers frequently encounter preventable mistakes that can result in significant financial losses or legal complications when purchasing property in Tulum.

1. **Inadequate Legal Representation**: Attempting to navigate the fideicomiso system and Mexican property law without qualified legal counsel often leads to title problems, contract issues, and regulatory non-compliance.2. **Insufficient Due Diligence**: Failing to verify clear title, check for liens, confirm proper zoning, and ensure the property isn't built on ejido (communal) land can result in ownership disputes or forced demolition.3. **Underestimating Total Costs**: Not budgeting for the full 6-7% closing costs, ongoing fideicomiso fees, property management expenses, and tax obligations creates financial strain and reduces investment returns.4. **Location Misjudgment**: Purchasing based solely on price without understanding neighborhood development plans, infrastructure limitations, or market dynamics often results in poor rental performance or difficult resales.5. **Rushing the Process**: Pressure from developers or agents to make quick decisions without proper evaluation leads to overpaying, choosing inferior properties, or missing critical contract terms.6. **Ignoring Infrastructure Realities**: Failing to verify utility availability, road access, waste management, and internet connectivity can make properties difficult to rent or develop.7. **Currency Risk Neglect**: Not planning for peso-dollar exchange rate fluctuations affects both purchase costs and ongoing rental income calculations.8. **Tax Planning Oversights**: Inadequate preparation for Mexican and home country tax obligations can result in unexpected liabilities and penalties that significantly impact investment returns.

Working with licensed, experienced professionals and taking time for thorough property evaluation prevents most of these costly mistakes while ensuring successful property investments in Tulum's dynamic market.

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. Tulum Times - The Truth About Buying Property in Tulum
2. The LatinVestor - Buy Property Mexico Without Citizenship
3. Global Property Guide - Mexico Buying Guide
4. Frank Ruiz Realty Group - Buy House in Tulum as Foreigner
5. The LatinVestor - Mexico Foreign Real Estate Ownership
6. Mexperience - Key Things About Buying Home in Mexico
7. Real Estate Lawyers Mexico - Buying as Foreigner
8. The LatinVestor - Mexico Real Estate Foreigner
9. Riviera Maya Cozy - Foreigner Buy Property Tulum
10. MexLaw - Why Foreigners Hire Lawyers for Real Estate