How to buy a condo in Mexico in 2025

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, 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.

What's the exact process to buy a condo in Mexico step-by-step?

The condo buying process in Mexico follows a structured legal pathway that takes 6-12 weeks from start to finish.

First, you'll research the market and set your budget, factoring in the purchase price plus 5-10% for closing costs. Next, you'll engage a qualified real estate agent - ensure they're licensed in regulated states like Quintana Roo or Jalisco and have at least 5 years of local experience. Once you find your ideal condo, your agent helps you make a formal offer and negotiate terms.

After your offer is accepted, you'll sign a preliminary purchase agreement (Contrato de Promesa de Venta) in Spanish and pay an earnest money deposit - typically 5-10% for pre-construction or 10-20% for completed condos. The crucial due diligence phase follows, where a notary public (Notario Público) verifies the property's title, ensures no liens exist, and confirms all taxes are paid. For properties in restricted zones (within 50 km of coast or 100 km of borders), you'll need to establish a fideicomiso (bank trust) through a Mexican bank.

The final steps involve signing the deed (Escritura) at the notary's office, paying the remaining balance and closing costs, and having the notary register your property with the Public Registry. While you gain legal possession immediately after signing, the official registration takes an additional 1-3 months.

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

What documents do I need to buy a condo in Mexico?

You'll need specific documents from both yourself as the buyer and from the seller to complete a condo purchase in Mexico.

As the buyer, you must provide your valid passport, Mexican visa or tourist permit (FMM) or residency card if applicable, and proof of funds for the purchase. If buying in a restricted zone, you'll also need an SRE permit from the Ministry of Foreign Affairs. The signed purchase-sale agreement becomes part of your documentation package.

From the seller's side, you'll receive the property's title deed (Escritura Pública), certificate of no encumbrances (Certificado de Libertad de Gravamen), current property tax receipts, and utility bill clearances showing no outstanding debts. For new developments, you should also verify all construction permits and confirm the land isn't ejido (communal) land, which requires special privatization procedures.

The notary public will review all these documents during due diligence to ensure a clean title transfer. If you're buying remotely, you can authorize a representative through a power of attorney to sign documents on your behalf.

Can I buy a condo in Mexico without being there in person?

Yes, you can absolutely purchase a condo in Mexico without physically being in the country.

Many foreign buyers complete their entire purchase remotely using a power of attorney (POA) to authorize a trusted representative or lawyer to sign documents on their behalf. Virtual tours and digital closings have become increasingly common, especially since 2020, with real estate agents providing detailed video walkthroughs and live virtual showings.

The key is appointing a reliable representative through a properly executed POA, which must be notarized in your home country and then apostilled or authenticated at a Mexican consulate. Your representative can handle everything from viewing properties to signing the final deed at the notary's office. Wire transfers facilitate remote payments, and digital document signing platforms streamline the preliminary paperwork.

However, visiting the property at least once before purchase is advisable to verify the condo's condition, neighborhood quality, and ensure it matches your expectations. Some buyers visit during the due diligence phase to meet with the notary and establish their fideicomiso if needed.

What exactly can foreigners buy and what are the restricted zones?

Foreigners can legally purchase any type of residential property in Mexico - condos, houses, or land - but the ownership structure depends on location.

The restricted zone encompasses all property within 50 kilometers (31 miles) of any Mexican coastline and 100 kilometers (62 miles) of any international border. In these areas, foreigners cannot hold direct title but must purchase through a fideicomiso - a bank trust where a Mexican bank holds the title for your benefit. You maintain full rights to use, rent, sell, renovate, or pass the property to heirs. The fideicomiso lasts 50 years and is renewable indefinitely.

Outside the restricted zones, foreigners can own property directly in their name with full title, just like Mexican citizens. This includes major inland cities like Mexico City, Guadalajara, San Miguel de Allende, and Guanajuato. The ownership process is simpler and slightly less expensive without the fideicomiso requirement.

For condominiums specifically, even in restricted zones, you own your individual unit through the fideicomiso while sharing common areas with other owners under the condominium regime. The fideicomiso doesn't limit your property rights - it's simply the legal mechanism that allows foreign ownership in these desirable coastal and border areas.

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How much are the taxes, fees, and closing costs when buying?

Total closing costs in Mexico typically range from 5-10% of the purchase price, with several components making up this total.

Beyond closing costs, ongoing expenses include the annual fideicomiso fee (if applicable), property taxes (predial), utilities, and HOA fees. Mexican property taxes are remarkably low - a $300,000 USD condo might only incur $750-$1,500 annually in property tax. However, luxury developments can have substantial HOA fees that cover security, pools, gyms, and beachfront maintenance.

Can I buy a condo entirely with cash in Mexico?

Cash purchases dominate the Mexican real estate market, with over 90% of transactions completed without financing.

Buying with cash is not only common but often preferred by sellers, as it eliminates financing contingencies and speeds up the closing process. Cash offers frequently receive priority and can provide negotiating leverage for price reductions, especially in buyer's markets. The process is straightforward - funds are typically wired to an escrow account or directly to the notary's trust account before closing.

Large cash transactions must comply with Mexican anti-money laundering regulations. You'll need to document the source of funds, and transfers over certain thresholds require additional reporting. Most buyers wire funds from their home country bank to avoid carrying large amounts of cash. Some use certified checks, though wire transfers are more secure and create a clear paper trail.

The cash-heavy market exists because Mexican mortgage rates are relatively high (7-12% as of mid-2025), qualification requirements are strict for foreigners, and many international buyers prefer the simplicity of cash transactions. Additionally, some sellers offer discounts for cash purchases since they receive funds immediately without financing delays.

Can foreigners get a mortgage in Mexico and how?

Foreigners can obtain mortgages in Mexico, though the process is more complex than cash purchases and represents less than 10% of foreign buyer transactions.

Mexican banks and specialized cross-border lenders offer mortgages to qualified foreigners, typically financing 50-70% of the property value. Interest rates range from 7-12% with terms from 5 to 30 years. Requirements include proof of income (usually 3-4 times the monthly payment), good credit history, a Mexican tax ID (RFC) or residency visa, and a down payment of 30-50%.

The application process involves extensive documentation including tax returns, bank statements, employment verification, and property appraisals. Processing takes 45-60 days on average. Some Mexican banks like BBVA, Santander, and Scotiabank have international mortgage departments, while cross-border specialists like Global Mortgage offer programs tailored to foreign buyers.

Developer financing presents another option, particularly for pre-construction condos. Terms vary but typically require 30-50% down with higher interest rates and shorter terms (5-10 years). This can be useful for buyers who want to leverage their purchase but don't qualify for traditional bank financing.

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

Are real estate agents reliable and how do I choose one?

Real estate agent reliability in Mexico varies significantly, but the industry is becoming more professional, especially in popular expat destinations.

States like Quintana Roo and Jalisco now require real estate agents to be licensed and registered, improving accountability. When selecting an agent, prioritize those with at least 5 years of experience in your target area, proper licensing where required, membership in professional associations like AMPI (Mexican Association of Real Estate Professionals), and strong local reputation with verifiable references.

Warning signs include agents who pressure you for immediate decisions, refuse to provide references, lack knowledge about legal requirements like fideicomisos, or request large upfront payments. Legitimate agents typically earn 5-6% commission paid by the seller at closing, not from buyer deposits.

Interview multiple agents before choosing. Ask about their experience with foreign buyers, specific transactions they've handled, and their network of notaries and lawyers. The best agents guide you through the entire process, from property search to closing, and have established relationships with trusted legal professionals. They should communicate clearly in your language and respond promptly to questions.

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.

Will Mexican law protect me if something goes wrong?

Mexican law provides strong protections for foreign property buyers who follow proper legal procedures.

The notary public system forms the backbone of these protections. Notaries in Mexico are government-appointed legal professionals with extensive training who act as impartial parties ensuring all documents are legitimate, taxes are paid, and titles are clear. They're personally liable for errors, providing an additional layer of security. The notary verifies no liens exist, confirms the seller's ownership rights, and ensures all legal requirements are met before transferring title.

However, Mexico's legal system can be slow if disputes arise. Court proceedings may take years to resolve, making prevention crucial. Title insurance, while optional, provides additional protection against potential claims and is recommended for all foreign buyers. Major providers like Stewart Title and First American Title operate in Mexico.

Your strongest protection comes from proper due diligence: always use both a notary and an independent lawyer, never skip title verification, ensure all contracts are in Spanish (the only legally binding version), and register your property promptly after purchase. The fideicomiso system for restricted zones also provides protection since Mexican banks have strict procedures to safeguard trust beneficiaries' rights.

What mistakes do foreigners commonly make when buying?

Foreign buyers often make preventable errors that can cost thousands of dollars or even result in losing their property.

The most critical mistakes include:1. Not verifying clear title through a notary - some sellers don't actually own what they're selling2. Buying ejido (communal) land without proper privatization documents3. Skipping professional translation of Spanish contracts, missing crucial terms4. Underestimating total costs by forgetting HOA fees, annual fideicomiso fees, and maintenance5. Using the seller's notary instead of choosing an independent one6. Not checking for liens, unpaid taxes, or utility debts7. Paying large deposits directly to sellers or unlicensed agents

Location-specific mistakes include not understanding fideicomiso requirements in coastal areas, assuming property ownership grants residency rights (it doesn't), and buying based on future development promises without written guarantees. Some buyers also fail to register their property after closing, leaving them vulnerable to legal challenges.

Avoiding these mistakes requires patience, professional help, and never rushing the due diligence process. If a deal seems too good to be true or requires immediate action, it's likely problematic.

How long does buying a condo take from start to finish?

The complete condo buying timeline in Mexico typically spans 6-12 weeks from accepted offer to receiving keys.

The process breaks down into distinct phases: offer negotiation (1-7 days), signing the promise to purchase agreement and due diligence (2-4 weeks), setting up fideicomiso if required (2-3 weeks), and final closing at the notary (1 day). While you receive legal possession immediately after signing at the notary, the official property registration takes an additional 1-3 months, though this doesn't affect your ownership rights.

Pre-construction condos follow different timelines, often requiring 2-4 years from initial deposit to delivery. During construction, you'll make progress payments according to the development schedule. These purchases require extra due diligence on the developer's track record and financial stability.

Factors that can extend timelines include incomplete seller documentation, fideicomiso setup in restricted zones, mortgage applications (add 45-60 days), and busy seasons when notaries and banks have backlogs. Having all documents ready and working with experienced professionals keeps the process moving efficiently. Cash purchases with clear titles in non-restricted zones can close in as little as 30 days.

Does buying property lead to Mexican residency or citizenship?

Property ownership in Mexico does not automatically grant residency or citizenship rights.

However, owning Mexican real estate can significantly support your residency application by demonstrating economic solvency. Immigration authorities view property ownership favorably when evaluating temporary or permanent residency applications. As of June 2025, showing property valued at approximately $300,000-500,000 USD can help meet financial requirements for residency, though specific amounts vary by consulate.

The path to citizenship requires first obtaining residency. After holding temporary or permanent resident status for five years, you may apply for naturalization. The timeline shortens to two years if you're married to a Mexican citizen or have Mexican children. Property ownership can strengthen your citizenship application by showing ties to Mexico, but it's just one factor among many.

Many condo buyers maintain tourist status, entering Mexico for up to 180 days at a time. This works well for vacation properties but doesn't provide a path to citizenship. If you plan to spend significant time in Mexico or want to work there, pursuing residency makes sense. Consult an immigration attorney to understand how your property purchase can support your long-term immigration goals.

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. MexHome - How to Buy a Condo in Mexico
2. Riviera Maya Cozy - Buying Condo in Playa del Carmen
3. Riviera Maya Cozy - Buy Property in Mexico as Foreigner
4. Remitly - Buying Property in Mexico
5. Mexperience - Closing Costs and Taxes
6. Hogare - How to Safely Buy Real Estate in Mexico
7. Taxes for Expats - Buying Property in Mexico
8. Canoa - Requirements for Foreigners
9. The Lat Investor - Mexico Real Estate Forecasts
10. Riviera Maya Blue - Foreign Citizens Buying Property