How to buy property in Tijuana as a foreigner?

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?

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 Tijuana. 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 Tijuana, Mexico City, and Guadalajara. 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.

What can foreigners actually buy in Tijuana compared to locals, and are there restrictions by nationality?

Foreigners can purchase all types of residential and commercial property in Tijuana, but must use a fideicomiso (bank trust) structure because the entire city falls within Mexico's "restricted zone."

The restricted zone includes all areas within 50 kilometers of coastline and 100 kilometers of international borders. Since Tijuana sits directly on the US-Mexico border, every property purchase requires a fideicomiso regardless of location within the city.

Mexican nationals can hold direct property title throughout the country, while foreigners must establish a bank trust where a Mexican bank holds legal title on behalf of the foreign buyer. This trust grants the foreigner all practical ownership rights including selling, renting, and inheriting the property.

No nationality restrictions exist for property ownership in Mexico. Americans, Canadians, Europeans, and citizens from any other country face identical requirements and processes.

The only properties foreigners cannot purchase are those classified as strategic to national security, which primarily affects certain border areas designated for military use.

Do I need a visa or residency status to own property, and which type is best if I plan to live there long term?

No visa or residency status is required to purchase property in Tijuana - even tourists on a 180-day permit can buy real estate.

However, property ownership does require obtaining a Mexican RFC (tax identification number), which can be secured remotely with legal assistance. The RFC enables you to pay property taxes and complete the purchase transaction.

For long-term living, obtaining temporary or permanent residency provides significant advantages. Resident visa holders access better banking services, easier mortgage qualification, Mexican healthcare systems, and simplified bureaucratic processes.

Temporary residency allows stays up to four years and can be renewed. Permanent residency offers indefinite status and easier pathways to Mexican citizenship if desired.

Cross-border commuters often maintain tourist status while owning property, but this limits access to local services and financial products.

Do I need to be physically present in Mexico to complete a property purchase, or can it be done remotely?

Property purchases can be completed entirely remotely through a properly executed Power of Attorney, though this adds 2-4 weeks to the process.

Remote purchases require a notarized, apostilled, and officially translated Power of Attorney document that authorizes a Mexican representative to act on your behalf. This representative can be a licensed attorney, registered real estate agent, or trusted personal contact.

The POA document must be notarized in your home country, receive an apostille certification from the appropriate government authority, and be translated by a certified translator in Mexico.

While remote purchases are legally valid, using a qualified Mexican attorney as your representative provides the strongest protection against fraud and ensures all legal requirements are properly fulfilled.

Many buyers choose to visit Tijuana for property selection and initial negotiations, then complete the final closing remotely if travel becomes difficult.

What are the exact steps of the buying process in Tijuana, and which documents are required at each stage?

Stage	Required Actions	Key Documents
Property Search	Select property, submit offer, pay earnest money	Passport, proof of funds, letter of intent
Legal Preparation	Obtain RFC, SRE permit, title search	Passport copy, visa documentation, address proof
Trust Setup	Create fideicomiso with Mexican bank	Bank trust contract, beneficiary designation
Due Diligence	Property inspection, title verification	Survey, title certificate, municipal clearances
Final Closing	Sign purchase agreement, transfer funds	Purchase contract, tax payments, notary certification
Registration	File with Public Registry, obtain title	Registered deed, property tax account setup
Post-Purchase	Utilities transfer, municipal registration	Utility contracts, local tax registration

Is it mandatory to hire a lawyer or notary, and what role do they play in protecting foreign buyers?

A government-appointed notary is mandatory for all property transactions in Mexico, while hiring a lawyer is strongly recommended but not legally required.

Mexican notaries serve a fundamentally different role than in the US or Canada. They are government-appointed legal officials who verify the transaction's legality, calculate all taxes and fees, ensure proper documentation, and file the transfer with the Public Registry.

The notary's responsibilities include conducting title searches, verifying the seller's legal right to sell, ensuring all liens and encumbrances are properly disclosed, and certifying that all legal requirements are met.

An independent lawyer provides additional protection by reviewing contracts before signing, conducting separate due diligence, negotiating terms on your behalf, and ensuring the fideicomiso trust is properly structured.

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

Never attempt to skip the notary requirement, as this would make your property purchase legally invalid under Mexican law.

What are the total taxes, fees, and closing costs I should expect when buying and later selling a property?

Total closing costs for buying property in Tijuana typically range from 4-6% of the purchase price, with some luxury transactions reaching higher percentages.

Transfer tax in Baja California ranges from 2-4% of the property value, representing the largest single cost component. Notary fees add another 1-3% of the purchase price, covering their legal services and government filing requirements.

Fideicomiso setup costs $550-1,000 USD for the initial establishment, plus annual renewal fees of $600-800 USD. Additional mandatory expenses include SRE permit ($1,000), foreign investment registration ($700), property appraisal (0.1-0.5%), and Public Registry filing (up to 1%).

When selling, non-resident foreigners face capital gains tax of 25% on gross sale proceeds or optionally 35% on net profit after deductions. Primary residence exemptions may apply if you've lived in the property for specific periods and meet other requirements.

Annual property taxes (predial) in Tijuana are remarkably low, typically 0.1-0.25% of property value, paid to the municipal government.

Can foreigners get a mortgage in Mexico, what are the current rates and conditions, and what tips help in getting approved?

Mexican mortgage financing for foreigners is available but limited, with most lenders requiring significant down payments and higher interest rates than local borrowers receive.

As of September 2025, foreign buyer mortgage rates range from 8-12% annually, significantly higher than US or Canadian rates. Mexican banks typically require 30-50% down payments from foreign borrowers, compared to 10-20% for Mexican nationals.

Successful mortgage applications require Mexican residency status (temporary or permanent), established Mexican credit history, proof of income from reliable sources, and substantial financial reserves beyond the down payment.

Alternative financing options include seller financing arrangements, private Mexican lenders, or securing financing against assets in your home country. Many buyers choose all-cash purchases to avoid mortgage complications and gain negotiating advantages.

Developer financing programs sometimes offer more favorable terms for new construction purchases, with some accepting foreign income documentation more readily than traditional banks.

Which neighborhoods in Tijuana are most popular with foreigners, and why do they stand out?

1. **Zona Río** - The business and cultural district attracts professionals with modern condos, shopping centers, restaurants, and proximity to the border crossing.2. **Chapultepec** - An upscale residential area featuring tree-lined streets, colonial architecture, and established expat communities.3. **Playas de Tijuana** - Coastal neighborhoods offering beach access, newer developments, and relaxed atmosphere popular with retirees.4. **Otay** - Growing area near the newer border crossing, attracting investors due to development potential and commercial growth.5. **Country Club** - Gated communities and golf course access appeal to affluent buyers seeking security and amenities.6. **La Mesa** - Central location with good value properties, popular among young professionals and families.7. **Hipódromo** - Trendy area with nightlife, restaurants, and walkable neighborhoods attracting younger expats.

Which areas currently offer the best potential for living, rental income, or capital appreciation, and what do the latest rankings and forecasts say?

Zona Río leads for rental income potential with yields reaching 10-12% annually, driven by business travelers and young professionals seeking furnished apartments near offices and entertainment.

Playas de Tijuana offers the strongest capital appreciation prospects, with waterfront property values increasing 15-20% annually as coastal development expands and infrastructure improvements continue.

For comfortable living, Chapultepec provides the best balance of safety, amenities, and community, with established expat networks and proximity to quality healthcare and international schools.

Otay represents the highest growth potential area, with commercial development around the new border crossing driving land values up 25-30% over the past two years.

It's something we develop in our Mexico 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.

What are the average property prices right now in Tijuana by neighborhood or region, and how do they compare with other Mexican cities?

Neighborhood	Condo Prices (USD)	House Prices (USD)
Zona Río	$120,000 - $300,000	$200,000 - $500,000
Chapultepec	$150,000 - $350,000	$250,000 - $600,000
Playas de Tijuana	$100,000 - $400,000	$180,000 - $800,000
Otay	$80,000 - $200,000	$120,000 - $350,000
Country Club	$200,000 - $500,000	$300,000 - $1,000,000
La Mesa	$70,000 - $180,000	$100,000 - $300,000
Hipódromo	$90,000 - $250,000	$150,000 - $400,000

What are the common mistakes and pitfalls foreigners make when buying in Tijuana, and how can they be avoided?

1. **Skipping independent legal representation** - Using only the seller's attorney or notary without hiring your own lawyer leaves you vulnerable to undisclosed problems.2. **Inadequate due diligence on title history** - Failing to verify clear title and check for liens, encumbrances, or legal disputes can result in costly surprises.3. **Misunderstanding fideicomiso terms** - Not properly structuring the bank trust or naming beneficiaries correctly can complicate inheritance and transfer rights.4. **Underestimating total costs** - Budgeting only for purchase price without accounting for 4-6% closing costs, annual trust fees, and ongoing expenses.5. **Rushing the purchase process** - Mexican real estate transactions require patience; attempting to expedite can lead to overlooked details and legal problems.6. **Ignoring local market conditions** - Buying in areas without understanding neighborhood trends, development plans, or infrastructure issues.7. **Currency exchange timing** - Not planning for peso-dollar fluctuations when transferring large sums for property purchase.

What are the fiscal implications of owning property as a foreigner, including rental income taxes, capital gains, and reporting duties in Mexico and abroad?

Foreign property owners in Mexico face tax obligations both in Mexico and their home countries, with specific reporting requirements varying by nationality.

Rental income from Tijuana properties is subject to Mexican income tax at rates ranging from 1.92% to 35% depending on total income levels. Property owners can choose between annual tax filing with deductions or a simplified monthly withholding system.

Capital gains tax applies at 25% on gross proceeds for non-residents, or optionally 35% on net profit after allowable deductions including improvement costs and inflation adjustments. Primary residence exemptions may reduce or eliminate this tax if specific conditions are met.

US citizens must report foreign property ownership and rental income on their US tax returns, potentially claiming foreign tax credits for Mexican taxes paid. Canadian and European residents face similar home country reporting requirements.

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

Annual predial property taxes remain low at 0.1-0.25% of property value, paid directly to Tijuana municipal authorities.

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. Bajare Group - Foreign Ownership Guide
2. The LatinVestor - Mexico Foreign Real Estate Ownership
3. Primero BR - Buying Real Estate in Tijuana
4. Global Property Guide - Mexico Buying Guide
5. Taxes for Expats - Buying Property in Mexico
6. The LatinVestor - Buy Property Mexico Without Citizenship
7. Real Estate Lawyers Mexico - Buying Guide
8. Mexperience - Buying and Owning a Home in Mexico
9. Beach Please Mexico - Closing Costs Calculator
10. Plalla - Mortgage for Foreigners in Mexico