Can foreigners buy beachfront property in Mexico?

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, Cancun, 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 foreigners legally buy beachfront property in Mexico, and if so, under what conditions?

Yes, foreigners can legally purchase beachfront property in Mexico under specific constitutional conditions that have been in place since 1973.

The primary requirement is that any beachfront property within Mexico's Restricted Zone must be purchased through a fideicomiso trust arrangement. This legal framework allows foreign nationals to acquire beneficial ownership rights while complying with Mexican constitutional restrictions on direct foreign ownership of coastal lands.

The process requires working with a Mexican bank that acts as the trustee, holding legal title to the property while the foreign buyer becomes the beneficiary with all practical ownership rights. This includes the right to buy, sell, lease, inherit, and improve the property exactly as if they owned it directly.

As of June 2025, over 1.5 million Americans and approximately 300,000 Canadians own property in Mexico using this system, demonstrating its reliability and widespread acceptance. The Mexican government actively promotes foreign investment in real estate as it contributes significantly to the national economy.

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

What is the Restricted Zone in Mexico, and how does it affect foreign ownership of beachfront properties?

The Restricted Zone encompasses all land within 50 kilometers (31 miles) of any Mexican coastline and 100 kilometers (62 miles) of international borders.

This constitutional provision, established in Article 27 of the Mexican Constitution, was designed to protect national sovereignty over strategic border and coastal areas. The zone covers approximately 40% of Mexico's total land mass, including all prime beachfront real estate along both the Pacific and Caribbean coasts.

Within the Restricted Zone, foreigners cannot hold direct title to land but can acquire full beneficial ownership through the fideicomiso trust system. The bank holds legal title while the foreign buyer enjoys all ownership rights, including the ability to sell, lease, mortgage, and pass the property to heirs.

Outside the Restricted Zone, foreigners can purchase property directly in their own names with the same rights as Mexican citizens. However, since all beachfront property by definition falls within 50km of the coast, all coastal real estate requires the fideicomiso structure for foreign ownership.

The Restricted Zone boundaries are precisely mapped and registered with the Mexican Ministry of Foreign Affairs, ensuring clear legal certainty for property transactions.

Is it possible to fully own beachfront property in Mexico as a foreigner, or is it only through a trust?

Foreign ownership of beachfront property in Mexico is only possible through the fideicomiso trust system, not through direct ownership.

The fideicomiso provides what legal experts call "beneficial ownership," which grants the foreign buyer virtually identical rights to direct ownership. These rights include exclusive use, the ability to modify or improve the property, selling at market value, and transferring ownership to heirs through inheritance.

Mexican law specifically prohibits direct foreign ownership of land within the Restricted Zone, making the trust structure the only legal path to beachfront property ownership. This restriction applies regardless of the buyer's residency status, investment amount, or length of time in Mexico.

Some foreigners attempt to circumvent this requirement by forming Mexican corporations, but this approach carries significant legal risks and has been increasingly scrutinized by Mexican authorities. The fideicomiso remains the safest and most widely accepted method for foreign beachfront property ownership.

The trust structure has proven reliable for over 50 years, with millions of successful transactions and strong legal precedent supporting foreign beneficiary rights.

What is the fideicomiso and how does it work step-by-step for buying beachfront property?

A fideicomiso is a Mexican bank trust where the institution holds legal title while the foreign buyer becomes the beneficiary with full ownership rights.

Step	Process	Timeline
1. Property Selection	Choose beachfront property and verify it's in Restricted Zone	1-4 weeks
2. Professional Team	Hire real estate agent and Mexican attorney	1-2 weeks
3. Purchase Agreement	Sign binding contract with seller including fideicomiso clause	1-2 weeks
4. Bank Selection	Choose Mexican bank to serve as trustee	1 week
5. Trust Setup	Bank establishes fideicomiso and registers with authorities	2-4 weeks
6. Title Transfer	Property title transfers to bank, buyer signs trust agreement	1-2 weeks
7. Registration	Trust registered with Public Registry of Property	2-3 weeks

The fideicomiso operates under Mexican Civil Code provisions and provides a 50-year term that can be renewed indefinitely by the beneficiary or their heirs. The trust can be sold, transferred, or used as collateral for financing, giving the foreign buyer comprehensive ownership flexibility.

Major Mexican banks including HSBC Mexico, Scotiabank Mexico, and Banco Santander commonly serve as trustees, with established procedures for managing foreign-owned property trusts.

Can foreigners purchase beachfront property in Mexico without physically being in the country?

Yes, foreigners can complete beachfront property purchases in Mexico remotely through power of attorney arrangements.

The remote purchase process requires granting legal power of attorney to a trusted representative in Mexico, typically the buyer's attorney or real estate agent. This representative can sign documents, attend closings, and complete the fideicomiso setup on the buyer's behalf.

Essential documents must be notarized in the buyer's home country and then apostilled for recognition in Mexico. Some Mexican banks may require the foreign buyer to appear in person for the initial fideicomiso signing, but many now accept properly executed powers of attorney.

Wire transfers for property purchases can be sent directly from foreign bank accounts to Mexican escrow accounts or the seller's designated account. The Mexican banking system is well-equipped to handle large international transfers for real estate transactions.

While remote purchasing is legally possible, many buyers choose to visit Mexico during the closing process to inspect the property and ensure all paperwork is properly executed. This provides additional security and allows for final due diligence before completing the transaction.

What documents and identification are required for a foreigner to buy beachfront property in Mexico?

Foreign buyers need specific documentation to establish legal identity and comply with Mexican real estate regulations.

1. **Valid passport** - Must be current with at least 6 months remaining validity2. **Mexican immigration document** - Tourist visa (FMM), temporary resident card, or permanent resident card3. **RFC (Registro Federal de Contribuyentes)** - Mexican tax identification number required for all property purchases4. **Proof of address** - Utility bill or bank statement from home country, translated to Spanish5. **Birth certificate** - Often required for fideicomiso setup, must be apostilled and translated6. **Bank statements** - Proof of funds for property purchase and associated costs7. **Marital status documentation** - Marriage certificate or single status affidavit if applicable

The RFC tax ID number is mandatory for all foreign property buyers and can be obtained from the Mexican Tax Administration Service (SAT) either in Mexico or at Mexican consulates abroad. This process typically takes 1-2 weeks and requires passport and proof of address.

All foreign documents must be apostilled in the country of origin and translated by a certified translator in Mexico. The apostille process validates documents for international use under the Hague Convention, which both the US, Canada, and Mexico have signed.

Some Mexican banks may require additional documentation such as employment verification or investment source letters, particularly for larger property purchases exceeding $500,000 USD.

Are there any taxes, notary fees, trust fees, or annual maintenance costs involved in owning beachfront property as a foreigner?

Foreign beachfront property ownership in Mexico involves several mandatory fees and taxes that buyers must budget for beyond the purchase price.

Cost Category	Amount	Frequency
Fideicomiso Setup Fee	$1,000-$2,200 USD	One-time
Annual Trust Maintenance	$400-$1,000 USD	Yearly
Notary and Closing Costs	2-4% of purchase price	One-time
Property Tax (Predial)	0.05-0.3% of assessed value	Yearly
Acquisition Tax	2-3% of purchase price	One-time
Property Appraisal	$1,000-$1,500 USD	One-time
Registration Fees	$1,500-$2,000 USD	One-time

The acquisition tax varies by state, with popular beachfront destinations like Quintana Roo (Riviera Maya) charging 3% while Jalisco (Puerto Vallarta) charges 2% of the declared property value. Property taxes in Mexico are significantly lower than most US states, typically ranging from 0.05% to 0.3% of the assessed value annually.

Annual fideicomiso maintenance fees depend on the bank and property value, with larger banks like HSBC Mexico typically charging $600-$800 annually while smaller regional banks may charge $400-$500. These fees cover trust administration, annual renewals, and beneficiary services.

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

Can foreigners get a mortgage in Mexico to buy beachfront property, and what are the typical interest rates and loan conditions?

Yes, foreigners can obtain mortgages from Mexican banks for beachfront property purchases, though options are more limited than domestic financing.

Mexican banks typically offer mortgage financing up to 50-70% of the property's appraised value for foreign buyers, compared to 80-90% for Mexican citizens. Interest rates for foreign borrowers range from 9-13% annually as of June 2025, significantly higher than US or Canadian mortgage rates.

Major Mexican banks offering foreign mortgages include HSBC Mexico, Scotiabank Mexico, and Banco Santander, with specialized programs for US and Canadian buyers. Some banks require the borrower to have Mexican residency status, while others accept tourist visas for qualifying applicants.

Loan terms typically range from 10-20 years, with some banks offering up to 25-year amortization for well-qualified borrowers. Required down payments range from 30-50% of the purchase price, with higher percentages required for properties exceeding $500,000 USD.

Alternative financing options include US-based lenders offering cross-border mortgages secured by Mexican property, though these often carry higher interest rates and more restrictive terms. Many foreign buyers choose cash purchases to avoid financing complications and qualify for better purchase prices.

Can you buy beachfront property in Mexico with cash, and are there any limits or reporting requirements when doing so?

Cash purchases are common and legal for Mexican beachfront property, but strict anti-money laundering regulations limit large cash transactions.

Mexican law prohibits cash payments exceeding 8,000 UDIS (approximately $48,000 USD as of June 2025) for real estate transactions. Payments above this threshold must be made through bank transfers, certified checks, or other traceable payment methods.

Large cash transactions require reporting to Mexico's Financial Intelligence Unit (UIF) and may trigger additional scrutiny from tax authorities. Banks must file suspicious activity reports for cash deposits exceeding certain thresholds, particularly for foreign nationals.

Wire transfers from foreign banks are the preferred payment method for international property purchases, providing clear documentation of fund sources and compliance with both Mexican and international banking regulations. These transfers typically take 1-3 business days and incur fees of $25-$50 USD.

Property buyers must be prepared to document the source of purchase funds, particularly for transactions exceeding $100,000 USD. Acceptable documentation includes bank statements, investment account records, or business sale proceeds with proper legal documentation.

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 most common mistakes or legal pitfalls foreigners make when buying beachfront property in Mexico?

The most critical mistake is failing to conduct proper due diligence on property titles and legal documentation before purchase.

1. **Incomplete title searches** - Not verifying clear title or existing liens against the property2. **Inadequate legal representation** - Using inexperienced attorneys or real estate agents unfamiliar with foreign transactions3. **Fideicomiso misunderstandings** - Not fully comprehending trust structure rights and limitations4. **Permit and zoning violations** - Purchasing properties with illegal construction or zoning non-compliance5. **Tax reporting errors** - Failing to properly report Mexican property ownership to home country tax authorities

Many foreigners underestimate the importance of hiring qualified Mexican legal counsel and instead rely solely on real estate agents or developers for legal guidance. This can result in missed title issues, improper contract terms, or inadequate protection of buyer rights.

Another common pitfall involves purchasing property in ejido (communal) lands that cannot legally be sold to foreigners. These transactions are void under Mexican law and can result in complete loss of investment, making proper title verification essential.

Environmental compliance issues frequently arise when buyers purchase properties in protected coastal zones without proper permits. Mexican environmental laws are strictly enforced, and violations can result in construction halts, fines, or property seizure.

Where do most foreigners typically buy beachfront property in Mexico, and how's the expat life in those areas?

The Riviera Maya, Puerto Vallarta, and Los Cabos represent the three most popular beachfront destinations for foreign property buyers.

Riviera Maya (Cancun to Tulum) attracts approximately 35% of all foreign beachfront purchases, offering pristine Caribbean beaches, cenotes, and well-developed tourism infrastructure. The region hosts over 150,000 American expats and retirees, with established healthcare, international schools, and English-speaking services.

Puerto Vallarta and the broader Riviera Nayarit account for about 25% of foreign beachfront sales, popular among US West Coast buyers seeking Pacific Ocean access. The area maintains strong Mexican cultural identity while offering modern amenities, with over 50,000 American and Canadian residents year-round.

Los Cabos represents the premium beachfront market, attracting high-net-worth buyers with luxury resorts, championship golf courses, and upscale dining. The region has approximately 30,000 foreign residents and caters to affluent retirees and vacation home owners.

Mazatlán and the Emerald Coast offer more affordable beachfront options with established expat communities of over 25,000 Americans and Canadians. These areas provide lower cost of living while maintaining quality healthcare and international amenities.

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

What are the average purchase prices, rental yields, and long-term investment forecasts for beachfront real estate in Mexico?

Mexican beachfront property prices vary significantly by location, with condominiums ranging from $495,000 to $693,000 USD and luxury homes reaching $2-5 million in prime locations.

Puerto Vallarta beachfront condos average $466,000-$925,000 depending on building amenities and exact location, while single-family beachfront homes range from $800,000 to $15 million for ultra-luxury properties. The market has experienced 7-12% annual appreciation over the past five years.

Riviera Maya properties command premium prices due to high tourism demand, with beachfront condos averaging $520,000-$750,000 and vacation rental yields reaching 8-15% annually in prime locations like Playa del Carmen and Tulum.

Los Cabos represents the highest-priced market, with beachfront condos starting around $650,000 and luxury homes frequently exceeding $3 million. Despite higher prices, rental yields remain strong at 6-10% due to premium vacation rental rates.

Long-term investment forecasts remain positive, with analysts predicting 5-7% annual appreciation through 2030 driven by continued US and Canadian buyer demand, infrastructure improvements, and limited beachfront supply. The Mexican government's investment in transportation and tourism infrastructure supports continued market growth.

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. Beach Please Mexico - Real Estate for Foreigners
2. TAO Mexico - Foreigners Buying Beachfront Property
3. Properstar - Mexico Beachfront Property Guide
4. Riviera Maya Cozy - Restricted Zone Property Buying
5. Cabo La Estancia - Understanding Fideicomiso
6. MyCasa.mx - Fideicomiso Foreign Property Ownership
7. MexLife - Best Places to Buy Beach House
8. The Latin Investor - Buying Condos Mexico
9. The Latin Investor - Property Investment Mexico
10. Global Property Guide - Mexico Rental Yields