Authored by the expert who managed and guided the team behind the Mexico Property Pack
Yes, the analysis of Mexico City's property market is included in our pack
Mexico City welcomes foreign buyers with surprisingly straightforward rules, but there are specific legal steps you absolutely cannot skip.
This guide covers everything from visa requirements to closing costs, mortgage options, and the exact documents you need to own property legally in CDMX in 2026.
We constantly update this blog post to reflect current laws, tax rates, and banking conditions in Mexico City.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Mexico City.
Insights
- Mexico City sits outside the "restricted zone," meaning foreigners can own property directly in their own name without needing a bank trust (fideicomiso), unlike coastal or border areas where trusts are mandatory.
- Closing costs in Mexico City typically run between 5% and 8% of the purchase price in 2026, with the ISAI acquisition tax being the largest single expense due to its progressive rate structure.
- Foreign buyers without Mexican residency often face mortgage rates around 11% to 14.5% in Mexico City in 2026, roughly 0.5 to 1.5 percentage points higher than what local borrowers pay.
- Annual property tax (predial) in Mexico City is remarkably low compared to global cities, typically ranging from 0.05% to 0.3% of market value because it is based on cadastral rather than market valuations.
- Non-resident foreigners earning rental income from Mexico City property face a 25% flat tax on gross rent with no deductions allowed under the standard non-resident regime.
- The notary in Mexico City is not just a witness but the central figure who verifies title, collects taxes, coordinates the SRE renunciation clause for foreigners, and registers the deed.
- Buying property in Mexico City does not automatically grant residency or citizenship, though ownership can support your financial solvency case when applying for temporary residency.
- Short-term rental rules in Mexico City have their own legal framework under the Tourism Law, including registration requirements that differ from standard residential leasing.
- The biggest ownership mistake foreigners make in Mexico City is trusting a private contract instead of insisting on a public deed executed before a notary and properly registered.
- BBVA, Santander, Scotiabank, HSBC, and Banorte are the five major banks in Mexico City most likely to consider mortgage applications from foreign buyers in 2026.
What can I legally buy and truly own as a foreigner in Mexico City?
What property types can foreigners legally buy in Mexico City right now?
In Mexico City, foreigners can legally buy all standard residential property types, including apartments, condos, houses, and townhouse-style homes in gated communities, because the city sits entirely outside Mexico's constitutionally defined "restricted zone" that applies only to borders and coastlines.
The main legal condition for foreign buyers in Mexico City is signing what is called an SRE renunciation agreement (sometimes referred to as the Calvo Clause), where you agree to be treated as a Mexican national regarding this specific property and not invoke your home country's diplomatic protection in disputes.
This sounds formal, but in practice it is a routine document that your notary prepares and coordinates as part of the standard purchase workflow in Mexico City, so you do not need to navigate government offices yourself.
Unlike coastal cities such as Cancun or Puerto Vallarta, you do not need a bank trust (fideicomiso) to hold title in Mexico City, which simplifies ownership and eliminates the ongoing trust fees that coastal buyers must pay.
Finally, please note that our pack about the property market in Mexico City is specifically tailored to foreigners.
Can I own land in my own name in Mexico City right now?
Yes, in Mexico City you can own land directly in your own name as a foreigner, whether that means the land beneath a house you purchase or your proportional share of land through a condominium regime when buying an apartment.
This direct ownership is possible specifically because Mexico City is not within the restricted zone, so there is no legal requirement to hold title through a bank trust or Mexican corporation.
However, you should be aware that some irregular or untitled properties do exist, especially on the city's fringes, and land with unclear registry status or ejido (communal) origins cannot provide you with the legal protections of true ownership even if a seller offers to transfer it.
As of 2026, what other key foreign-ownership rules or limits should I know in Mexico City?
As of early 2026, the main additional rules that affect foreign buyers in Mexico City relate to the condominium regime and short-term rental regulations rather than nationality-based ownership quotas or caps.
There is no foreign ownership quota for apartments or condos in Mexico City, meaning a building can be entirely owned by foreigners without triggering any special restrictions or government approvals.
However, if you plan to rent your property on platforms like Airbnb, Mexico City's Tourism Law creates specific registration and reporting requirements for "estancia turistica eventual" (occasional tourist stays) that differ from standard long-term leasing.
Regarding recent regulatory changes, the short-term rental rules in Mexico City have been subject to ongoing court challenges and enforcement adjustments, so the practical requirements for platform-based rentals may shift during 2026.
What's the biggest ownership mistake foreigners make in Mexico City right now?
The single biggest ownership mistake foreigners make in Mexico City is purchasing property through a private contract without insisting on a public deed (escritura publica) executed before a notary and properly registered with the Public Registry.
If you make this mistake, you may discover years later that you have no legally defensible title, that someone else has claims to the property, or that you cannot sell because there is nothing official to transfer.
Other classic pitfalls in Mexico City include assuming you need a fideicomiso trust (you do not in CDMX), signing "irrevocable power of attorney" arrangements that developers sometimes push, and failing to verify that the property has a clean chain of title in the Registry before paying any significant deposit.
We have made this infographic to give you a quick and clear snapshot of the property market in Mexico. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
Which visa or residency status changes what I can do in Mexico City?
Do I need a specific visa to buy property in Mexico City right now?
You do not need a special visa or residency permit to buy residential property in Mexico City in January 2026, and foreigners commonly complete purchases while visiting on tourist status.
The most common administrative friction for buyers without local residency is opening a Mexican bank account and completing fund transfers, since banks often prefer clients with temporary or permanent residency and a local tax ID (RFC).
A local tax ID is not strictly required just to sign the purchase deed, but you will almost certainly want one if you plan to open accounts, apply for a mortgage, rent out the property, or issue invoices.
For the purchase itself, a foreign buyer typically needs their valid passport, the signed SRE renunciation agreement (which the notary prepares), proof of address, and evidence of how funds entered Mexico through compliant banking channels.
Does buying property help me get residency and citizenship in Mexico City in 2026?
As of early 2026, buying property in Mexico City does not automatically grant you residency or citizenship, and Mexico does not have a formal "golden visa" program where real estate purchase alone qualifies you for residency.
That said, owning property can indirectly support your application for temporary residency by demonstrating financial ties to Mexico and contributing to the economic solvency threshold that consulates evaluate.
The main pathway to temporary residency for most foreigners involves proving financial solvency, either through income, investments, or savings that meet UMA-based thresholds published by consulates, and these thresholds are updated periodically.
We give you all the details you need about the different pathways to get residency and citizenship in Mexico City here.
Can I legally rent out property on my visa in Mexico City right now?
Your visa status does not directly prevent you from renting out a property you own in Mexico City, but it does affect your tax treatment and compliance obligations significantly.
You do not need to live in Mexico to rent out your Mexico City property, but if you are a non-resident, you face the non-resident tax regime, which typically means 25% tax on gross rental income with no deductions allowed.
Other important details include that short-term rentals (Airbnb-style) may trigger CDMX Tourism Law registration requirements, many condominium buildings have HOA rules restricting short-term rentals, and you will likely need an RFC and possibly a local property manager to handle invoicing and compliance.
We cover everything there is to know about buying and renting out in Mexico City here.
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How does the buying process actually work step-by-step in Mexico City?
What are the exact steps to buy property in Mexico City right now?
The standard sequence to buy property in Mexico City in 2026 is: choose and negotiate the property, sign a promissory agreement with a deposit, begin due diligence with your notary, have the notary verify title and obtain registry certifications, get an appraisal, sign the public deed before the notary, pay the balance plus taxes and fees, and finally register the deed with the Public Registry.
You do not have to be physically present for every step because you can grant a power of attorney to someone who can sign on your behalf, though most buyers prefer to appear in person for the final deed signing.
The step that makes the deal legally binding in Mexico City is typically the signature of the public deed (escritura publica) before the notary, which is when ownership officially transfers and the transaction becomes enforceable.
From accepted offer to final registration, a straightforward Mexico City property purchase usually takes between four and eight weeks, though complex title histories, mortgage approvals, or developer pre-sales can extend this timeline.
We have a document entirely dedicated to the whole buying process our pack about properties in Mexico City.
Is it mandatory to get a lawyer or a notary to buy a property in Mexico City right now?
A notary is effectively mandatory for any legitimate property purchase in Mexico City because the transfer must be formalized through a public deed (escritura publica) and the notary also collects taxes, coordinates the SRE clause for foreigners, and handles registration with the Public Registry.
The key difference between a notary and a lawyer in Mexico City is that the notary is a government-appointed official who authenticates and registers the transaction, while a lawyer advocates specifically for your interests by reviewing contracts, negotiating terms, and identifying risks the notary may not highlight.
One item you should explicitly include in any lawyer engagement for a Mexico City purchase is a thorough review of the seller's authority to sell, especially if the seller is using a power of attorney, is a developer, or if the property is part of an estate or corporate structure.
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 checks should I run so I don't buy a problem property in Mexico City?
How do I verify title and ownership history in Mexico City right now?
The official registry you should use to verify title and ownership history in Mexico City is the Registro Publico de la Propiedad y de Comercio de la Ciudad de Mexico, which maintains all recorded property transactions, liens, and legal annotations.
The key document to request is a certificacion de antecedentes registrales, which is an official certificate showing who the registered owner is, what transactions have been recorded, and whether any encumbrances or limitations exist.
Most buyers and notaries in Mexico City look back at least 10 to 20 years of ownership history to ensure there are no gaps, disputed inheritances, or irregularities in how previous transfers were executed.
One clear red flag that should stop or pause your purchase is any gap in the chain of title, unregistered transfers, pending litigation noted in the registry, or evidence that a previous sale was never properly recorded.
You will find here the list of classic mistakes people make when buying a property in Mexico City.
How do I confirm there are no liens in Mexico City right now?
The standard way to confirm there are no liens or encumbrances on a Mexico City property is to request the registry certification (certificacion de antecedentes registrales) from the Public Registry, which will list any mortgages, court orders, embargoes, or other recorded limitations.
One common type of lien buyers should specifically ask about in Mexico City is an existing mortgage (hipoteca) that the seller has not fully paid off, which must be released before or at closing for you to receive clean title.
The best written proof of lien status in Mexico City is the official registry certificate itself, which your notary will obtain as part of the standard due diligence process and which reflects everything recorded against the property at the time of issuance.
How do I check zoning and permitted use in Mexico City right now?
The authority you should use to check zoning and permitted use for a property in Mexico City is the Secretaria de Desarrollo Urbano y Vivienda (SEDUVI), which administers land use regulations across the city.
The specific document that confirms zoning classification in Mexico City is called the Certificado Unico de Zonificacion de Uso del Suelo (CUZUS), which states exactly what uses are permitted, restricted, or prohibited for a specific property.
A common zoning pitfall that foreign buyers miss in Mexico City is purchasing a property they plan to remodel or use for mixed purposes without verifying that the CUZUS actually permits those changes, which can result in denied permits, fines, or forced reversal of unauthorized work.
Buying real estate in Mexico City can be risky
An increasing number of foreign investors are showing interest. However, 90% of them will make mistakes. Avoid the pitfalls with our comprehensive guide.
Can I get a mortgage as a foreigner in Mexico City, and on what terms?
Do banks lend to foreigners for homes in Mexico City in 2026?
As of early 2026, yes, Mexican banks do lend to foreigners for home purchases in Mexico City, though the process involves more documentation and often stricter terms than what Mexican nationals face.
Foreign borrowers in Mexico City most commonly see loan-to-value ratios between 50% and 70%, meaning you should plan for a down payment of at least 30% to 50% of the purchase price.
The single most common eligibility requirement that determines whether a foreigner qualifies for a Mexico City mortgage is having temporary or permanent residency, a local tax ID (RFC), and verifiable income that the bank can underwrite locally.
You can also read our latest update about mortgage and interest rates in Mexico.
Which banks are most foreigner-friendly in Mexico City in 2026?
As of early 2026, the three banks most frequently cited as foreigner-friendly for mortgages in Mexico City are BBVA Mexico, Santander Mexico, and Scotiabank Mexico, with HSBC Mexico and Banorte also serving international clients.
What makes these banks more foreigner-friendly in Mexico City is their experience handling international documentation, their willingness to work with residents who have foreign income sources, and their established processes for non-Mexican credit histories.
These banks will generally lend to foreigners who have at least temporary residency in Mexico; pure non-residents without any local residency status face significantly more difficulty and may need to look at specialized cross-border lenders or larger down payments.
We actually have a specific document about how to get a mortgage as a foreigner in our pack covering real estate in Mexico City.
What mortgage rates are foreigners offered in Mexico City in 2026?
As of early 2026, foreigners with residency and good documentation typically see fixed-rate peso mortgage offers in the range of 11% to 14.5% per year in Mexico City, which is roughly 0.5 to 1.5 percentage points above what strong local borrowers receive.
Most mortgages offered to foreigners in Mexico City are fixed-rate products because variable-rate options are less common in the Mexican market, so the primary pricing difference you will see relates to your credit profile, down payment size, and bank relationship rather than fixed versus variable structures.
We made this infographic to show you how property prices in Mexico compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
What will taxes, fees, and ongoing costs look like in Mexico City?
What are the total closing costs as a percent in Mexico City in 2026?
In Mexico City in 2026, total closing costs for a residential property buyer typically run between 5% and 8% of the purchase price.
The realistic range covers most standard transactions, with lower percentages applying to higher-value properties (since some fees are capped or degressive) and higher percentages affecting smaller purchases where fixed costs weigh more heavily.
The specific fee categories that make up total closing costs in Mexico City include the ISAI acquisition tax, notary fees, Public Registry fees, appraisal costs, certificate fees, and minor administrative charges.
The single biggest contributor to closing costs in Mexico City is the ISAI (Impuesto Sobre Adquisicion de Inmuebles), which is a progressive acquisition tax that can represent 3% to 5% or more of the transaction value depending on the price bracket.
If you want to go into more details, we also have a blog article detailing all the property taxes and fees in Mexico City.
What annual property tax should I budget in Mexico City in 2026?
As of early 2026, annual property tax (predial) for a standard owner-occupied home in Mexico City typically ranges from around MXN 2,000 to MXN 25,000 per year (roughly USD 100 to USD 1,250 or EUR 95 to EUR 1,150), though higher-value properties with updated cadastral assessments can pay more.
Property tax in Mexico City is assessed based on cadastral value rather than market value, and since cadastral values are often significantly lower than what properties actually sell for, the effective tax rate tends to be much lower than in many other global cities.
How is rental income taxed for foreigners in Mexico City in 2026?
As of early 2026, foreigners who are tax residents abroad and earn rental income from Mexico City property typically face a 25% tax on gross rent under the non-resident regime, with no deductions allowed for expenses, maintenance, or depreciation.
The basic requirement is that either the tenant or a local representative withholds this 25% and remits it to SAT (Mexico's tax authority), though foreigners from treaty countries may be able to elect net-basis taxation with proper compliance and local representation.
What insurance is common and how much in Mexico City in 2026?
As of early 2026, annual home insurance premiums in Mexico City typically range from MXN 3,000 to MXN 30,000 per year (roughly USD 150 to USD 1,500 or EUR 140 to EUR 1,400), with the wide range reflecting whether earthquake coverage is included and the insured value of the property.
The most common type of property insurance coverage that owners carry in Mexico City is a standard "seguro de casa habitacion" policy covering fire, theft, and civil liability, with earthquake (sismo) coverage added as a separate module given the city's seismic risk.
The biggest factor that makes insurance premiums higher or lower for the same property type in Mexico City is whether you include earthquake coverage and what deductible level you choose, since earthquake riders can double or triple the base premium depending on building age and construction type.
Get the full checklist for your due diligence in Mexico City
Don't repeat the same mistakes others have made before you. Make sure everything is in order before signing your sales contract.
What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Mexico City, we always rely on the strongest methodology we can … and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why it's authoritative | How we used it |
|---|---|---|
| Mexican Constitution Article 27 | It is the primary legal text setting the restricted zone and foreign ownership framework. | We used it to explain why foreigners can buy directly in Mexico City. We referenced it to confirm CDMX is outside the restricted zone. |
| Foreign Investment Law | It is the main statute that operationalizes foreign property participation rules. | We used it to distinguish Mexico City purchases from restricted-zone trust requirements. We referenced it for understanding how ownership structures work legally. |
| SRE Renunciation Agreement Form | It is the official government document foreigners sign for direct ownership outside restricted zones. | We used it to explain what the Calvo Clause actually requires. We showed that this is a routine document handled by notaries. |
| Mexican Consulate Property Guidance | It is official government guidance written specifically for foreign buyers. | We used it to translate legal requirements into buyer-friendly language. We confirmed visa and documentation requirements against this source. |
| CDMX Registry Certification Procedure | It is the official Mexico City process for verifying property legal status. | We used it to explain how to verify ownership history and liens. We based our due diligence guidance on this official procedure. |
| CDMX CUZUS Zoning Certificate | It is the official city process for obtaining permitted land use documentation. | We used it to explain how buyers confirm zoning compliance. We referenced it to turn zoning into a concrete document you can request. |
| College of Notaries of Mexico City | It is the professional body for notaries who are central to all property transfers. | We used it to explain the notary's role and common buyer mistakes. We referenced their warnings about private contracts and unsafe practices. |
| CDMX Fiscal Code | It is the authoritative legal basis for Mexico City local taxes including acquisition and property tax. | We used it as the foundation for explaining ISAI and predial taxes. We avoided relying on market blogs for tax rules. |
| CDMX ISAI Tariff Document | It is a government-published tariff showing the progressive acquisition tax brackets. | We used it to estimate closing costs and show that ISAI is bracketed. We built realistic percentage ranges based on these official brackets. |
| Banxico Mortgage Cost Indicator | Banxico is Mexico's central bank and this is its official data portal for credit metrics. | We used it to anchor credible mortgage rate ranges for peso-denominated loans. We ensured our rate estimates are data-driven rather than guesswork. |
| CONDUSEF Mortgage Comparison Tool | CONDUSEF is Mexico's financial consumer regulator with a neutral comparison simulator. | We used it to identify foreigner-friendly banks and compare offers. We verified down payment requirements and terms through this tool. |
| SAT RFC Registration for Foreigners | SAT is Mexico's tax authority and this is the official foreigner registration process. | We used it to explain when and why you need an RFC. We kept tax ID guidance practical and operational. |
| Income Tax Law (ISR) | It is the controlling statute for all income taxes including non-resident taxation. | We used it to support the non-resident rental income tax treatment. We avoided oversimplified summaries by referencing the actual law. |
| CDMX Tourism Law | It is the city's law covering short-term rental registration requirements. | We used it to explain Airbnb-style rental rules in Mexico City. We noted that enforcement and court challenges affect practical application. |
| CONDUSEF Home Insurance Guidance | It is the regulator's statement on comparing home insurance products. | We used it to define common coverage categories for Mexico City properties. We kept insurance guidance consumer-focused rather than sales-led. |
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Mexico. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.