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
Buying property in Mexico as a foreigner is absolutely possible, but the rules change depending on where the property is located.
This guide covers the legal structures, visa requirements, buying process, and costs you need to know in January 2026.
We constantly update this blog post to reflect current housing prices and regulations in Mexico.
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.
Insights
- Foreigners buying beachfront property in Mexico (within 50 km of the coast) must use a bank trust called a fideicomiso, which typically adds 7% to 10% in closing costs compared to 5% to 8% outside the restricted zone.
- Mexico's Constitution Article 27 has governed foreign property ownership since 1917, and the fideicomiso system is the standard legal workaround, not a loophole or gray area.
- Average mortgage rates in Mexico in 2026 hover around 11% to 14% for well-documented foreign borrowers, based on Banxico's official housing credit indicators showing averages near 11.6%.
- Ejido (agrarian) land remains the number one trap for foreign buyers in Mexico, and properties on unconverted ejido land cannot be legally transferred through normal channels.
- Mexico does not offer a direct "golden visa" where buying property automatically grants residency, unlike some other countries.
- Annual property tax (predial) in Mexico is remarkably low by international standards, typically ranging from 0.05% to 0.3% of property value per year.
- Non-resident foreigners earning rental income in Mexico must pay income tax (ISR) to SAT, and platforms like Airbnb often withhold taxes automatically under Mexico's digital platform rules.
- The notario publico is effectively mandatory in Mexico property transactions because only they can execute the escritura publica (formal deed) that makes the transfer legally valid.
- Home insurance penetration in Mexico is low (only about 27% of homes are insured according to AMIS), but premiums in hurricane-prone coastal areas can reach 0.3% to 0.6% of property value annually.
- Foreign buyers commonly pay ISAI (transfer tax) at closing, and rates vary by state, with Mexico City administering this through its official OVICA tax portal.
What can I legally buy and truly own as a foreigner in Mexico?
What property types can foreigners legally buy in Mexico right now?
In January 2026, foreigners can legally buy most residential property types in Mexico, including condos, apartments, houses, townhouses, and villas.
The main condition is location: if the property is inside the "restricted zone" (within 50 km of the coast or 100 km of international borders), foreigners must buy through a bank trust called a fideicomiso instead of holding direct title.
This fideicomiso arrangement means a Mexican bank holds legal title as trustee, but you control the property like an owner and can use it, rent it, sell it, or pass it to heirs.
Popular markets like Cancun, Playa del Carmen, Tulum, Puerto Vallarta, Los Cabos, and most of Baja California's coast fall inside this restricted zone, so the fideicomiso is the standard path for foreign buyers in these areas.
Finally, please note that our pack about the property market in Mexico is specifically tailored to foreigners.
Can I own land in my own name in Mexico right now?
Yes, foreigners can own land directly in their own name in Mexico, but only if the property is located outside the restricted zone (more than 50 km from the coast and 100 km from borders).
Inside the restricted zone, foreigners cannot hold direct title to land, so they use the fideicomiso trust structure, which gives them full control over the property while a Mexican bank holds legal ownership.
One critical warning: ejido land (agrarian/communal land) operates under a completely separate legal regime, and buying ejido land without proper conversion or regularization is the single riskiest move a foreign buyer can make in Mexico.
By the way, we cover everything there is to know about the land buying process in Mexico here.
As of 2026, what other key foreign-ownership rules or limits should I know in Mexico?
As of January 2026, the most important rule to understand is that Mexico does not impose foreign ownership quotas on condo buildings, which is different from some Asian or Caribbean markets that cap how many units foreigners can own in a single development.
There is no national limit on how many apartments or condos foreigners can buy in a building in Mexico, so your constraints come from the restricted zone rules and the building's private HOA bylaws, not from government quotas.
Foreign buyers in Mexico do need SRE approval to set up a fideicomiso in the restricted zone, and this permit is a standard part of the closing process handled by the notario and the bank.
There have been no major regulatory changes to foreign ownership rules in Mexico heading into 2026, though individual condo HOAs increasingly restrict short-term rentals in resort markets like Tulum and Puerto Vallarta.
If you're interested, we go much more into details about the foreign ownership rights in Mexico here.
What's the biggest ownership mistake foreigners make in Mexico right now?
The single biggest mistake foreigners make when buying property in Mexico is purchasing something that is not cleanly titled and registrable, most often ejido land or properties sold with only "possession rights" instead of a proper deed.
If you buy ejido land or a possession-rights property, you may find yourself unable to sell, unable to get financing, and potentially facing legal disputes with no clear resolution path.
Other classic pitfalls in Mexico include signing private contracts or "irrevocable power of attorney" arrangements that sellers present as normal, skipping the notario process, or failing to check for liens and encumbrances before committing to a purchase.
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?
Do I need a specific visa to buy property in Mexico right now?
No, you do not need Mexican residency or a specific visa to buy property in Mexico in January 2026, and many foreigners complete purchases while visiting on a tourist visa.
The most common administrative requirement that can slow down buyers without local residency is obtaining an RFC (Registro Federal de Contribuyentes), which is Mexico's tax ID number administered by SAT.
While you may not need an RFC to sign the deed, you will likely need one to open utility accounts, receive rental income properly, and handle your tax obligations in Mexico.
Foreign buyers in Mexico typically need to present a valid passport, proof of legal entry, and sometimes proof of address or funds, with the exact requirements varying slightly by notario and bank.
Does buying property help me get residency and citizenship in Mexico in 2026?
As of January 2026, buying property in Mexico does not automatically grant you residency or citizenship, unlike some countries that offer straightforward "golden visa" programs tied to real estate investment.
Mexico does have a Temporary Resident visa category for investors, but it requires meeting specific investment thresholds and documentation requirements through the consular process, not simply buying a home.
Most foreigners who want to live in Mexico long-term pursue residency through other pathways, such as proving sufficient income or retirement funds, family ties, or employment, and citizenship requires years of legal residency plus meeting naturalization requirements.
We give you all the details you need about the different pathways to get residency and citizenship in Mexico here.
Can I legally rent out property on my visa in Mexico right now?
Your visa status in Mexico does not prevent you from renting out property you own, meaning foreigners can legally earn rental income in Mexico regardless of whether they hold residency or are just visiting.
You do not need to live in Mexico to rent out your property, and many foreign owners manage rentals remotely through local property managers.
The key thing foreigners must know is that Mexico taxes rental income from Mexican properties even if you live abroad, and if you use platforms like Airbnb, those platforms may withhold ISR (income tax) and IVA (VAT) automatically under SAT's digital platform rules.
We cover everything there is to know about buying and renting out in Mexico here.
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How does the buying process actually work step-by-step in Mexico?
What are the exact steps to buy property in Mexico right now?
The standard sequence to buy property in Mexico involves finding the property, making an offer, conducting due diligence, signing a promissory agreement with a deposit, setting up a fideicomiso if in the restricted zone, closing at the notario's office, and then registering the deed in the Public Registry.
You do not always need to be physically present in Mexico to buy property, since a properly drafted power of attorney allows someone to sign on your behalf, though you should only do this with a trusted notario and lawyer.
The step that makes the deal legally binding in Mexico is typically the signing of the escritura publica (formal deed) before the notario, which is the moment ownership officially transfers.
From accepted offer to final registration, the timeline in Mexico usually ranges from 4 to 12 weeks, though fideicomiso transactions in the restricted zone can take longer due to the SRE permit process.
We have a document entirely dedicated to the whole buying process our pack about properties in Mexico.
Is it mandatory to get a lawyer or a notary to buy a property in Mexico right now?
A notario publico is effectively mandatory for any standard property purchase in Mexico because only the notario can execute the escritura publica and handle the official registration that makes your ownership legally valid.
The key difference is that the notario in Mexico is a government-appointed official who authenticates the transaction and ensures taxes are paid, while a lawyer (abogado) represents your interests, reviews contracts, and handles due diligence on your behalf.
If you hire a lawyer for your Mexico property purchase, make sure their engagement scope explicitly includes verifying title, checking for liens, reviewing the condo regime documents if applicable, and confirming there are no ejido or agrarian issues.
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?
How do I verify title and ownership history in Mexico right now?
The official authority to verify title and ownership history in Mexico is the Registro Publico de la Propiedad (Public Registry of Property), which operates at the state level and maintains records of all registered real estate transactions.
The key document you should request is a certified copy of the property's folio or registration entry, which shows the current owner's name, the property description, and any recorded encumbrances.
A realistic look-back period for ownership history checks in Mexico is typically 10 to 20 years, which helps you spot any irregularities, gaps, or disputed transfers in the chain of title.
A clear red flag that should stop or pause your purchase in Mexico is any mention of ejido origin, unresolved inheritance disputes, or breaks in the ownership chain where the seller cannot explain how they acquired the property.
You will find here the list of classic mistakes people make when buying a property in Mexico.
How do I confirm there are no liens in Mexico right now?
The standard way to confirm there are no liens or encumbrances on a property in Mexico is to request a Certificado de Libertad de Gravamen (certificate of no liens) from the Registro Publico de la Propiedad in the state where the property is located.
One common type of lien buyers should specifically ask about in Mexico is a mortgage (hipoteca), but you should also check for tax liens, court-ordered embargoes, and any annotations from pending legal disputes.
The single best proof of lien status in Mexico is the official Certificado de Libertad de Gravamen, which the seller or notario can obtain and which shows whether the property is free and clear at the time of issuance.
How do I check zoning and permitted use in Mexico right now?
The authority to check zoning and permitted use for a property in Mexico is typically the municipal government (municipio) where the property is located, since zoning is administered at the local level rather than federally.
The document or reference that confirms zoning classification in Mexico is usually a constancia de uso de suelo or a zoning certificate issued by the municipality, which states what activities are permitted on the land.
One common zoning pitfall foreign buyers miss in Mexico is assuming they can run short-term rentals in a residential-zoned condo, when in reality the condo's HOA bylaws or local regulations may prohibit or restrict Airbnb-style lodging.
Buying real estate in Mexico 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, and on what terms?
Do banks lend to foreigners for homes in Mexico in 2026?
As of January 2026, yes, some Mexican banks do lend to foreigners for home purchases, but approval is stricter than for Mexican residents and typically requires residency status, an RFC tax ID, and verifiable income.
Foreign borrowers in Mexico who qualify usually see loan-to-value (LTV) ratios in the 50% to 70% range, meaning you need a substantial down payment of 30% to 50% of the purchase price.
The most common eligibility requirement that determines whether a foreigner qualifies for a Mexican mortgage is having temporary or permanent residency, since banks want borrowers who are legally established in Mexico with documented income they can verify.
You can also read our latest update about mortgage and interest rates in Mexico.
Which banks are most foreigner-friendly in Mexico in 2026?
As of January 2026, the banks most commonly mentioned as foreigner-friendly for mortgages in Mexico are BBVA Mexico, Santander Mexico, and Scotiabank Mexico, with HSBC Mexico and Banorte also serving some foreign clients.
What makes these banks more foreigner-friendly in Mexico is that they tend to have better English-language support, more standardized documentation processes, and more experience underwriting borrowers with international income sources.
These banks may lend to non-residents in specific circumstances, but in practice, most successful foreign mortgage applicants in Mexico hold at least temporary residency and can demonstrate Mexico-based income or strong international documentation.
We actually have a specific document about how to get a mortgage as a foreigner in our pack covering real estate in Mexico.
What mortgage rates are foreigners offered in Mexico in 2026?
As of January 2026, foreigners who qualify for Mexican mortgages typically see interest rates in the 11% to 14% range for well-documented borrowers, while those with weaker local profiles may face rates of 13% to 17% or be pushed toward alternative financing.
Most Mexican mortgages are offered at fixed rates rather than variable rates, so the difference between fixed and variable is less relevant here than in some other markets, though the total annual cost (CAT) including fees and insurance often pushes the effective cost into the mid-teens.
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?
What are the total closing costs as a percent in Mexico in 2026?
In Mexico in 2026, total closing costs for a residential property purchase typically range from about 5% to 10% of the purchase price, depending on location and whether you need a fideicomiso.
Outside the restricted zone, buyers usually pay 5% to 8% in closing costs, while purchases inside the restricted zone with a fideicomiso typically run 7% to 10% due to the additional trust setup fees.
The specific fee categories that make up closing costs in Mexico include the acquisition tax (ISAI or similar depending on state), notario fees, deed preparation, Public Registry registration, appraisal, and fideicomiso setup costs if applicable.
The single biggest contributor to closing costs in Mexico is usually the acquisition tax (ISAI), which varies by state but often runs 2% to 5% of the transaction value.
If you want to go into more details, we also have a blog article detailing all the property taxes and fees in Mexico.
What annual property tax should I budget in Mexico in 2026?
As of January 2026, annual property tax (predial) in Mexico is quite low compared to many countries, typically ranging from 0.05% to 0.3% of property value per year, which for a home worth 5 million MXN (roughly 250,000 USD or 230,000 EUR) means annual predial of about 2,500 to 15,000 MXN (125 to 750 USD or 115 to 690 EUR).
Property tax in Mexico is assessed by the municipality based on the cadastral (assessed) value of the property, which is often lower than market value, and rates vary significantly from one city or state to another.
How is rental income taxed for foreigners in Mexico in 2026?
As of January 2026, non-resident foreigners earning rental income from Mexican property face income tax (ISR) rates that can range from around 25% withholding on gross rent for non-residents without a fiscal representative, though effective rates vary based on structure and deductions.
The basic requirement for foreign owners is that rental income from Mexican properties must be reported to SAT, and if you use platforms like Airbnb, those platforms often withhold ISR and IVA automatically under Mexico's digital platform tax rules.
What insurance is common and how much in Mexico in 2026?
As of January 2026, typical annual home insurance premiums in Mexico range from about 0.15% to 0.35% of insured value for standard properties, which for a home worth 5 million MXN (roughly 250,000 USD or 230,000 EUR) means annual premiums of about 7,500 to 17,500 MXN (375 to 875 USD or 345 to 805 EUR), though coastal properties can pay significantly more.
The most common type of property insurance coverage owners carry in Mexico includes fire, water damage, and theft, with earthquake coverage being especially important in Mexico City and other seismic zones.
The biggest factor that makes insurance premiums higher or lower in Mexico is location, specifically whether your property is in a hurricane-prone coastal area like the Riviera Maya or Los Cabos, where premiums can reach 0.3% to 0.6% of property value due to windstorm risk.
Get the full checklist for your due diligence in Mexico
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, 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 |
|---|---|---|
| Mexico Constitution Article 27 | It's the primary legal text that creates the restricted zone rule for foreigners. | We used it to anchor what foreigners can and cannot do near coasts and borders. We treat all trust and permit rules as implementations of this constitutional foundation. |
| SRE Consular Explainer | It's Mexico's foreign ministry explaining the rules to foreigners in plain terms. | We used it to define the restricted zone (50 km coast, 100 km border) and the direct ownership versus trust split. We treat it as the practical, foreigner-facing interpretation of Article 27. |
| Foreign Investment Law (LIE) | It's the official federal statute governing how foreigners may hold rights in Mexico. | We used it to support the permit and fideicomiso legal pathway in the restricted zone. We cross-referenced it with SRE procedure pages. |
| SRE Fideicomiso Permit Page | It's the official government procedure page for the key permit foreigners need. | We used it to describe what the fideicomiso permit is and how it fits into the timing and steps. We cross-checked the language with other SRE pages. |
| Banxico Mortgage Cost Indicators (CF303) | It's the central bank's official time series for mortgage rate and cost indicators. | We used it to estimate mortgage rates and CAT that borrowers see in Mexico. We anchored our 2026 guidance on the most recent official series values. |
| SHF Housing Price Index (Q2 2025) | SHF is the federal housing finance agency and its index is a standard market reference. | We used it to ground market reality through mortgage-backed transaction data. We treated SHF as the housing market lens and Banxico as the rates lens. |
| SAT Foreigner Tax Page | It's the official tax authority stating foreigners' obligations for Mexico-sourced income. | We used it to explain rental income and VAT exposure for non-residents. We kept the phrasing simple but the obligations accurate. |
| SAT Platform Tax Minisite | It's SAT's official guidance on platform intermediaries' withholding duties. | We used it to explain how Airbnb-style rentals are treated and when platforms withhold ISR and IVA. We triangulated with the general foreigner tax page. |
| Colegio de Notarios de la Ciudad de Mexico | It's the official notaries' professional body for Mexico City, explaining best practices. | We used it to support that the real transfer happens via escritura publica before a notario. We also used it to flag common scams involving private contracts. |
| CDMX ISAI Tax Portal (OVICA) | It's an official city tax portal used in real transactions. | We used it to show that ISAI is a real, administered buyer cost. We did not generalize CDMX rates to all Mexico, only the existence and variability. |
| Registro Agrario Nacional (RAN) | It's the federal registry for agrarian and ejido documentation. | We used it to explain how you verify whether land is ejido and why that's a different legal regime. We treat RAN checks as mandatory due diligence outside urban cores. |
| BBVA Mexico Lien Certificate Explainer | It's a major bank explaining a standard due diligence document in accessible terms. | We used it to clarify the meaning and function of the Certificado de Libertad de Gravamen. We triangulated with notary guidance to confirm accuracy. |
| AMIS Insurance Penetration Report | AMIS is Mexico's insurance industry association with authoritative market data. | We used it to note that home insurance penetration in Mexico is low. We then provided conservative premium estimates consistent with catastrophe risk loading. |
| Mexican Embassy Investor Visa Page | It's the official consular source for investor residency categories. | We used it to explain that property purchase alone does not grant residency. We avoided implying any guaranteed property-to-passport path. |
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.