Can I buy property in Mexico as an American?

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, Playa del Carmen, and Puerto Vallarta. 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 or are there restrictions compared to Mexican citizens?

Americans can legally buy property in Mexico with full ownership rights in most areas of the country.

Outside the restricted zones, Americans enjoy the same property ownership rights as Mexican citizens. You can hold direct title to the property, sell it freely, and pass it on to heirs without additional restrictions.

However, within Mexico's restricted zones—areas within 50 kilometers of the coast or 100 kilometers of international borders—Americans cannot hold direct title to property. Instead, they must use a bank trust called a fideicomiso or establish a Mexican corporation for commercial properties. This constitutional restriction applies to all foreigners, not just Americans.

The fideicomiso system has been in place since 1973 and provides Americans with the same practical benefits as direct ownership, including the right to use, rent, sell, and inherit the property. As of June 2025, this remains the standard legal framework for foreign property ownership in coastal areas.

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

Are there any specific areas or zones in Mexico where Americans cannot buy property directly?

Yes, the Mexican Constitution establishes "restricted zones" where Americans cannot buy property directly.

The restricted zone includes any land within 50 kilometers (31 miles) of any coastline or 100 kilometers (62 miles) of any international border. This covers popular destinations like Cancún, Playa del Carmen, Puerto Vallarta, Cabo San Lucas, and Tijuana.

Within these zones, Americans must purchase property through a fideicomiso (bank trust) where a Mexican bank holds the title on behalf of the foreign buyer. The trust typically lasts 50 years and can be renewed indefinitely. For commercial properties, Americans can alternatively establish a Mexican corporation with foreign investment permits.

Americans should avoid purchasing ejido land, which is communal land owned by rural communities. Ejido properties cannot be legally sold to foreigners under any circumstances, and such transactions are considered invalid under Mexican law.

Outside the restricted zones, in cities like Mexico City, Guadalajara, and Monterrey, Americans can purchase property with full direct ownership rights identical to Mexican citizens.

What type of visa or residency do Americans need to buy, own, or live in a property long-term in Mexico?

Americans do not need any special visa or residency status to buy property in Mexico.

A standard tourist visa (FMM), which is automatically granted for up to 180 days upon entry, is sufficient to purchase property. This applies whether you're buying a vacation home, investment property, or future retirement residence.

However, if you plan to live in Mexico for more than 180 days per year, you'll need to apply for temporary or permanent residency. Owning property valued at $220,000 USD or more can help qualify for temporary residency, while properties worth $440,000 USD or more may qualify you for permanent residency.

For the actual property purchase process, you only need a valid U.S. passport and tourist visa to sign all legal documents before a Mexican notary. The property ownership itself doesn't require maintaining any specific immigration status.

Many Americans choose to maintain tourist status and simply exit and re-enter Mexico every 180 days if they don't qualify for or want formal residency.

Do Americans have to be physically present in Mexico to buy a property, or can they do it remotely?

Americans can buy property in Mexico completely remotely without being physically present during the transaction.

The key to remote purchasing is establishing a power of attorney that authorizes a representative to act on your behalf. This representative can be your Mexican lawyer, a trusted local contact, or a family member already in Mexico.

The power of attorney must be notarized in the United States and then apostilled for international recognition. Once in Mexico, it must be translated into Spanish by a certified translator and registered with Mexican authorities.

Your representative can then sign all purchase documents, establish the fideicomiso if needed, and complete the closing process at the notary's office. Many Americans successfully purchase properties while remaining in the United States throughout the entire process.

However, some banks and notaries may prefer the buyer to be present for certain steps, so it's important to confirm remote procedures with your legal team and financial institutions before proceeding.

What is the exact step-by-step process for Americans to buy property in Mexico, and what documents are required?

The property purchase process follows a structured legal framework that typically takes 30-60 days to complete.

First, select your property and negotiate terms with the seller. Work with a reputable real estate agent who understands foreign buyer requirements. Sign a purchase agreement and provide an earnest money deposit, typically 5-10% of the purchase price.

Next, hire a Mexican lawyer to conduct due diligence on the property. They will verify clear title, check for liens or legal disputes, confirm property taxes are current, and ensure all permits are in order. This step is crucial and typically takes 1-2 weeks.

If the property is in a restricted zone, your lawyer will apply for a fideicomiso permit with a Mexican bank. This process takes 2-3 weeks and requires Ministry of Foreign Affairs approval.

Finally, complete the closing before a Mexican notary public, who certifies all documents and registers the property transfer with local authorities. Pay the remaining balance plus closing costs, which typically total 5-8% of the purchase price.

Document Category	Specific Documents	Purpose
Identification	Valid U.S. passport, Tourist visa (FMM)	Legal identification and immigration status
Financial	Bank statements, Proof of income, Financial statements	Demonstrate ability to complete purchase
Personal	Birth certificate, Marriage certificate (if applicable)	Establish legal status and family relationships
Legal	Power of attorney (if buying remotely), Fideicomiso application	Authorize representatives and establish trust if needed
Property	Purchase agreement, Property appraisal, Title search results	Define transaction terms and verify property status

Is it mandatory for Americans to hire a local Mexican lawyer or notary when buying property in Mexico?

Hiring a Mexican lawyer is not legally mandatory but is considered essential for protecting your interests.

Mexican real estate law differs significantly from U.S. law, and only a qualified Mexican attorney can properly conduct due diligence, verify clear title, and identify potential legal issues. Most experienced foreign buyers consider legal representation indispensable rather than optional.

A Mexican notary public (notario público) is legally required for all property transactions. Unlike U.S. notaries, Mexican notarios are specialized legal professionals similar to attorneys who must certify the authenticity of all documents and register the property transfer with government authorities.

The notary's role includes verifying the seller's legal right to sell, confirming the buyer's identity and legal capacity, calculating and collecting all applicable taxes, and registering the transaction with the Public Registry of Property.

Legal fees typically range from $1,500 to $3,000 USD, while notary fees are usually 1-2% of the property value. These costs are small compared to the potential financial losses from legal problems that could arise without proper representation.

Can Americans get a mortgage in Mexico, what banks offer it to foreigners, and what are the rates and conditions like?

Americans can obtain mortgages in Mexico, though options are more limited than for Mexican citizens.

Several major Mexican banks offer mortgages to foreigners, including Banco Santander Mexico, BBVA Mexico, Banamex, and Banorte. These institutions have specific programs designed for international buyers and understand the fideicomiso process.

Current mortgage rates for foreigners typically range from 10-12% APR as of mid-2025, compared to 8-10% for Mexican citizens. Loan terms can extend up to 30 years, with both fixed and variable rate options available.

Foreign buyers typically need to provide a down payment of 20-30% of the property value. Banks require proof of income, credit history, bank statements, and may request additional documentation depending on the loan amount and property location.

The mortgage approval process usually takes 4-6 weeks and requires the property to be appraised by a bank-approved valuator. Some banks may require borrowers to maintain Mexican bank accounts and may offer better terms to clients with significant deposits or investment portfolios with the institution.

What are the typical property prices per square meter for Americans in top cities and coastal regions of Mexico?

Property prices vary significantly across Mexico's major markets, with coastal areas commanding premium prices.

Mexico City averages approximately $2,473 USD per square meter, with luxury neighborhoods like Polanco and Roma Norte exceeding $4,935 USD per square meter. The capital offers the most stable market with consistent appreciation potential.

In the Riviera Maya, Tulum leads with prices ranging from $3,000-$4,500 USD per square meter for condominiums and townhomes. Playa del Carmen and Cancún both average $2,000-$4,000 USD per square meter, depending on proximity to the beach and property amenities.

Puerto Vallarta's established market shows two-bedroom condos ranging from $466,000-$925,000 USD, with per-square-meter prices varying widely based on location and property type. Beachfront properties command significant premiums over inland locations.

Mérida offers more affordable options with colonial homes and modern developments averaging $1,200-$2,500 USD per square meter. Los Cabos represents the premium end with luxury properties exceeding $5,000 USD per square meter in prime locations.

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

Which Mexican cities or regions are currently best for Americans in terms of liveability, rental yields, tourism, and appreciation potential?

City/Region	Liveability Score	Rental Yields	Tourism Level	Appreciation Potential
Tulum	High	8-15%	Very High	Very High
Playa del Carmen	High	5-6%	Very High	High
Puerto Vallarta	High	5-6%	High	High
Mexico City	Very High	5.7-6.2%	Moderate	High
Cancún	High	5.7%	Very High	High
Mérida	High	4-5%	Moderate	Growing
Los Cabos	High	4-6%	High	Moderate

What taxes and fees will Americans face during and after the purchase, and how is U.S. income reporting affected?

Americans face several taxes and fees when buying property in Mexico, both during the transaction and ongoing ownership.

Closing costs typically total 5-8% of the purchase price and include acquisition tax (2-4%), notary fees (1-2%), legal fees ($1,500-$3,000 USD), fideicomiso setup and annual fees ($500-$1,500 USD), and property appraisal costs ($300-$800 USD).

Annual property taxes (predial) are remarkably low, generally less than 0.1% of the property's assessed value per year. Many properties have annual tax bills under $500 USD, even for valuable coastal properties.

For rental income, non-resident Americans pay up to 25% withholding tax in Mexico, while residents pay progressive rates from 3-30%. Capital gains tax applies when selling, with rates depending on residency status and length of ownership.

U.S. tax reporting requirements include declaring all rental income on your tax return, potentially filing IRS Form 114 (FBAR) if foreign bank accounts exceed $10,000 USD, and Form 5471 if property is held through a Mexican corporation. Americans may exclude up to $500,000 of capital gains if the property was their primary residence for 2 of the last 5 years.

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

The most frequent and costly mistake is failing to hire qualified Mexican legal representation.

1. **Skipping proper due diligence**: Always conduct thorough title searches, verify property taxes are current, and confirm all permits are in order before closing.2. **Ignoring restricted zone requirements**: Understand fideicomiso rules for coastal and border properties and ensure proper trust establishment with authorized Mexican banks.3. **Buying ejido land**: Avoid purchasing communal ejido land, which cannot be legally sold to foreigners under any circumstances.4. **Underestimating closing costs**: Budget 5-8% of purchase price for closing costs, not just the down payment and property price.5. **Neglecting tax obligations**: Understand both Mexican and U.S. tax reporting requirements for property ownership and rental income.6. **Working with unlicensed agents**: Verify real estate agents are properly licensed and experienced with foreign transactions.7. **Rushing the process**: Allow adequate time for due diligence, fideicomiso setup, and proper legal review rather than pushing for quick closings.

Prevention involves working with experienced professionals, conducting thorough research, and allowing adequate time for all legal processes to be completed properly.

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.

Where do most Americans prefer to buy in Mexico and why—retirement, investment, lifestyle, or tax benefits?

Americans most commonly purchase property in the Riviera Maya, Puerto Vallarta, and central Mexico destinations like San Miguel de Allende and Lake Chapala.

Retirement buyers favor locations with established expat communities, affordable healthcare, and lower cost of living. Lake Chapala and San Miguel de Allende attract retirees seeking colonial charm and cultural richness, while coastal areas like Puerto Vallarta appeal to those wanting beachfront retirement.

Investment-focused buyers concentrate on high-tourism areas like Tulum, Playa del Carmen, and Cancún, where rental yields can reach 8-15% annually. These markets benefit from strong international tourism demand and consistent appreciation potential.

Lifestyle buyers often choose Mexico City for urban amenities, cultural attractions, and business opportunities, or coastal areas for vacation homes and eventual retirement properties. The combination of warm climate, rich culture, and proximity to the United States makes Mexico attractive for second-home ownership.

Tax benefits include Mexico's low property tax rates (under 0.1% annually), favorable capital gains treatment for long-term residents, and potential U.S. tax advantages for qualifying primary residences. Many Americans also appreciate Mexico's territorial tax system for residents.

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. Riviera Maya Cozy - US Citizen Buy House Mexico
2. TheLatinvestor - US Citizen Own Property Mexico
3. MyCasa.mx - How Americans Can Buy Land in Mexico 2025
4. Mexico Relocation Guide - Foreigner Property Ownership
5. Global Property Guide - Mexico Price History
6. Tulum Times - Riviera Maya Real Estate Market 2025
7. TheLatinvestor - Buying Condos Mexico
8. Paradise Listings - Property Taxes in Mexico
9. Tax Me Less - Mexico Rental Tax
10. Wise - Buy Property in Mexico