How to buy a home 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, 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 TheLatinInvestor, 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 actually buy property in Mexico, and if so, are there any restrictions on what or where they can buy?

Yes, foreigners can absolutely buy property in Mexico, but the ownership structure depends on the location.

Outside the "restricted zone" (areas within 50km of coastlines and 100km of international borders), foreigners can own property directly with full title rights, just like Mexican citizens. This means you hold the deed in your name and have complete ownership rights.

Inside the restricted zone, which includes popular coastal destinations like Cancun, Puerto Vallarta, and Playa del Carmen, foreigners cannot hold direct title. Instead, you must use a fideicomiso (bank trust) where a Mexican bank holds the legal title as trustee while you maintain all beneficial rights as the beneficiary. This trust lasts 50 years and is renewable indefinitely.

Another option in restricted zones is forming a Mexican corporation, though this is typically used for commercial properties rather than residential homes. The fideicomiso remains the most popular and straightforward option for individual homebuyers.

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

Is it possible to get residency or even citizenship by buying property in Mexico?

Buying property in Mexico does not automatically grant residency or citizenship, but it can significantly help your residency application.

For temporary residency, Mexican consulates typically require proof of monthly income of $2,700-$4,500 or savings of $54,000-$108,000, depending on the specific consulate. Owning real estate valued above $220,000-$437,000 can serve as qualifying financial proof for your residency application.

The path to citizenship requires first obtaining temporary residency, then permanent residency after four years, and finally applying for citizenship after five years of legal residence. Property ownership demonstrates strong ties to Mexico and financial stability, which immigration officials view favorably during the residency application process.

As of June 2025, Mexico has streamlined its residency processes, making it easier for property owners to demonstrate their commitment to the country. However, you must still meet all other requirements including background checks and proof of financial solvency.

What are the most popular areas in Mexico where foreigners typically buy homes?

Foreign buyers concentrate in specific regions that offer lifestyle advantages, infrastructure, and investment potential.

Location	Key Features	Average Price Range (USD)
Riviera Maya (Cancun, Playa del Carmen, Tulum)	Caribbean beaches, international airport, strong rental market	$200,000 - $800,000
Puerto Vallarta	Pacific coast, established expat community, year-round tourism	$180,000 - $600,000
San Miguel de Allende	Colonial architecture, UNESCO World Heritage, arts scene	$250,000 - $750,000
Mexico City	Urban sophistication, business opportunities, cultural richness	$150,000 - $500,000
Mérida, Yucatan	Safety, authentic culture, growing digital nomad hub	$120,000 - $400,000
Mazatlán	Emerging market, Pacific coast, lower prices	$100,000 - $350,000
La Paz, Baja California Sur	Sea of Cortez, outdoor activities, growing expat community	$140,000 - $450,000

How does the home buying process in Mexico compare to buying in the US, Canada, or Europe—would you call it easy or complex?

The Mexican home buying process is moderately more complex than purchases in the US, Canada, or most European countries, particularly in restricted coastal zones.

The main complexity stems from Mexico's declarative registry system, where property registration doesn't guarantee clear title—unlike the constitutive systems in the US and Canada where registration provides title insurance protection. This means due diligence becomes absolutely critical in Mexico.

Mexican notaries (notarios) play a much larger role than in North American transactions. They're licensed attorneys who verify legal compliance, conduct title searches, and oversee the entire closing process. While this adds oversight, it also means more steps and higher fees compared to typical US closings.

Language barriers add another layer of complexity, as most legal documents are in Spanish and Mexican property law differs significantly from common law systems. However, in major expat areas, many professionals speak English and are experienced with foreign buyers.

The timeline is generally longer—60 to 90 days versus 30-45 days typical in the US—but the process is well-established and manageable with proper professional guidance.

What is the full step-by-step process of buying a home in Mexico, from finding a property to closing the deal?

The Mexican property purchase process follows a structured sequence that typically takes 60-90 days from offer to closing.

1. Property Search and Selection: Work with a licensed real estate agent or search listings online through platforms like Vivanuncios or Inmuebles24
2. Make an Offer: Submit a written offer through your agent, typically starting 10-15% below asking price in most markets
3. Sign Promissory Agreement: Execute a "contrato de promesa de compraventa" and pay an earnest money deposit of 5-10% of purchase price
4. Hire Legal Representation: Engage a Mexican attorney to conduct due diligence and represent your interests
5. Due Diligence Period: Your attorney verifies clear title, checks for liens, debts, and ensures all property taxes are current (typically 15-30 days)
6. Apply for SRE Permit: Required for all foreign buyers in restricted zones, obtained through Mexican Ministry of Foreign Affairs
7. Establish Fideicomiso (if applicable): Select a bank, sign trust agreement, and pay setup fees for properties in restricted zones
8. Secure Financing (if applicable): Finalize mortgage approval and provide all required documentation to Mexican lender
9. Final Property Inspection: Conduct walkthrough to ensure property condition matches agreement
10. Closing at Notary: Sign the final deed (escritura pública), pay balance and closing costs, transfer ownership officially
11. Property Registration: Notary registers the new deed with the Public Registry of Property within 15 days
12. Obtain Property Tax Account: Register with local municipality for ongoing property tax (predial) payments

Can I buy a property in Mexico without physically being in the country at all, or are there steps that require my presence?

You can complete most of the Mexican property purchase process remotely, but your physical presence or a power of attorney is typically required for the final closing.

Remote purchase steps include property selection through virtual tours, offer submission via email, due diligence review through digital documents, and even fideicomiso setup through online banking. Many Mexican banks and notaries now offer digital services that accommodate international buyers.

However, Mexican law generally requires the buyer's signature on the final deed (escritura pública) to be witnessed by the notary. You have three options: travel to Mexico for closing, grant a notarized power of attorney to a trusted representative, or use some notaries who accept apostilled documents for final signatures.

If using a power of attorney, it must be prepared by a Mexican attorney, notarized in your home country, and apostilled according to Hague Convention requirements. This process can take 2-4 weeks and costs $500-$1,500 in legal fees.

Most experienced buyers recommend being present for the final closing to ensure everything proceeds smoothly and to receive keys personally.

What documents are absolutely mandatory for a foreigner to purchase real estate in Mexico?

Foreign property buyers in Mexico must provide specific documentation that proves identity, legal status, and financial capacity.

• Valid Passport: Must be current with at least 6 months remaining validity
• Mexican Tax ID (RFC): Required for all property transactions, obtained from SAT (Mexican tax authority)
• Immigration Document: Tourist visa (FMM) or residency card proving legal entry to Mexico
• Proof of Address: Utility bill or bank statement from your home country, apostilled
• SRE Permit: Ministry of Foreign Affairs authorization for purchases in restricted zones
• Bank Account Information: Mexican or international account details for fund transfers
• Power of Attorney (if applicable): Notarized and apostilled if you won't attend closing personally
• Property Purchase Agreement: Signed contract outlining all terms and conditions
• Property Title Documents: Seller must provide clear title deed and no-lien certificate

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

What are the full costs, taxes, legal fees, and other hidden charges involved in buying a property in Mexico—can you break it all down?

Mexican property purchases involve multiple fees and taxes that typically total 5-7% of the purchase price.

Cost Category	Percentage/Amount	Description
Acquisition Tax (ISAI)	2-4% of purchase price	State-level transfer tax, varies by location
Notary Fees	1-2% of purchase price	Legal oversight and document preparation
Public Registry Fees	0.5-1% of purchase price	Official property registration costs
Bank Trust Setup	~$1,000 one-time	Fideicomiso establishment in restricted zones
Annual Trust Fee	$500-$2,000 per year	Ongoing fideicomiso maintenance (restricted zones only)
Legal Attorney Fees	$1,500-$3,000	Independent legal representation
Property Appraisal	$300-$800	Required for financing or tax purposes
Property Tax (Predial)	$100-$500 annually	Ongoing municipal property tax
HOA/Maintenance Fees	$50-$500 monthly	Condo or community fees (if applicable)

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.

Is it common or even possible for foreigners to get a mortgage in Mexico, and if so, what are the current interest rates, conditions, and smart tips to get approved?

Mexican mortgages for foreigners are available but require larger down payments and higher interest rates than domestic loans.

Current mortgage conditions as of June 2025 include minimum down payments of 30-40% for foreigners, compared to 10-20% for Mexican nationals. Interest rates typically range from 7-18% annually, depending on your credit profile, loan term, and lender.

Major Mexican banks offering foreigner mortgages include BBVA Bancomer, Santander, and Banorte. International lenders like Global Mortgage and Akumal Mortgage also specialize in expat financing. Loan terms typically range from 10-20 years with maximum financing amounts of $300,000-$500,000.

Smart approval tips include establishing a Mexican bank account and credit history, providing extensive income documentation from your home country, obtaining pre-approval before house hunting, and working with brokers experienced in foreigner loans. Life insurance is mandatory for most Mexican mortgages.

Many buyers opt for cross-border financing, using equity from US or Canadian properties to secure better rates and terms than available in Mexico.

Can I just pay in full with cash, and are there any legal or tax issues with doing that in Mexico?

Cash purchases are common and legally straightforward in Mexico, with no specific restrictions on foreign buyers paying in full.

Mexico requires reporting of cash transactions over $500,000 pesos (approximately $25,000 USD) to prevent money laundering, but this is handled automatically by the notary during closing. Your funds must be properly documented with bank transfer records or certified cashier's checks.

Cash advantages include faster closing times (30-45 days versus 60-90 days with financing), stronger negotiating position with sellers, and avoiding Mexican mortgage requirements and fees. You'll still pay the same acquisition taxes and closing costs regardless of payment method.

The key requirement is demonstrating legitimate fund sources through bank statements, transfer records, or sworn declarations. Mexican authorities may request proof that funds don't originate from illegal activities, particularly for large transactions over $100,000 USD.

Wire transfers are the preferred method for international cash purchases, typically costing 0.5-1% in transfer fees but providing complete documentation for legal compliance.

Are Mexican real estate agents generally reliable, and what precautions should I take before trusting one?

Mexican real estate agents range from highly professional to completely unreliable, making careful selection absolutely critical for foreign buyers.

In major expat areas like Puerto Vallarta, San Miguel de Allende, and the Riviera Maya, many agents are experienced with international transactions and speak fluent English. However, Mexico doesn't require real estate licensing in all states, creating inconsistent professional standards.

Key precautions include verifying the agent's licensing status with local real estate boards, asking for client references from recent foreign buyers, ensuring they carry professional liability insurance, and never paying any money directly to agents—all funds should flow through escrow or the notary.

Red flags include agents pushing quick decisions, refusing to provide written agreements, demanding upfront fees, or discouraging you from hiring independent legal representation. Legitimate agents encourage legal counsel and due diligence.

Consider working with agents certified by AMPI (Mexican Association of Real Estate Professionals) or those affiliated with international brokerages like Coldwell Banker or Sotheby's International Realty.

What are the most common mistakes and scams foreigners fall into when buying property in Mexico, and how can I avoid them?

Foreign property buyers in Mexico frequently encounter specific scams and make avoidable mistakes that can cost thousands of dollars.

• Buying Ejido Land: Never purchase communal lands (ejidos) as foreigners cannot legally own them. Always verify land classification through your attorney
• Skipping Title Insurance: Unlike US purchases, Mexican properties don't automatically include title insurance. Purchase separate coverage through companies like Stewart Title Mexico
• Trusting Seller Documentation: Sellers may present fake or outdated property documents. Your attorney must independently verify all paperwork with government registries
• Paying Before Closing: Never wire money directly to sellers or agents. Use only notary escrow accounts or established escrow services
• Ignoring Property Debts: Unpaid HOA fees, property taxes, and utility bills transfer with the property. Demand current payment certificates before closing
• Rushed Transactions: Scammers pressure quick decisions. Legitimate sellers allow proper due diligence time
• Fake Rental Income Claims: Verify rental histories through actual records, not seller estimates, especially in tourism markets
• Inadequate Due Diligence: Spend 2-4 weeks investigating title history, permits, and legal compliance rather than rushing to close
• Using Seller's Attorney: Always hire independent legal representation. Seller attorneys have inherent conflicts of interest
• Currency Exchange Scams: Use established banks or services like Wise for money transfers rather than cash exchange services

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. Global Property Guide - Mexico Buying Guide
2. TheLatinInvestor - Mexico Real Estate for Foreigners
3. Mexico Relocation Guide - Foreign Property Ownership
4. Mexican Consulate - Property Acquisition Guide
5. MexLaw - Bank Trusts vs Corporations
6. MexPerience - Closing Costs and Taxes
7. International Living - Mexico Real Estate
8. Live and Invest Overseas - Best Places to Buy
9. CB Riveras - Mortgages for Foreign Investors
10. MexLaw - Avoiding Real Estate Scams