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
Foreigners can legally buy property in Mexico, but specific restrictions apply in coastal and border areas where a fideicomiso (bank trust) is required.
Mexico's foreign ownership laws allow international buyers to purchase real estate throughout the country, with constitutional restrictions in "restricted zones" within 50km of coastlines and 100km of international borders. As of September 2025, these regulations remain unchanged, making Mexico an accessible destination for foreign property investment through proper legal structures.
If you want to go deeper, you can check our pack of documents related to the real estate market in Mexico, based on reliable facts and data, not opinions or rumors.
Foreigners can own property in Mexico but must use a fideicomiso (bank trust) in restricted zones within 50km of coasts or 100km of borders.
No residency or visa requirements exist for property purchase, and all nationalities face the same constitutional restrictions without discrimination.
| Ownership Type | Location | Requirements |
|---|---|---|
| Direct Ownership | Outside restricted zones | Standard purchase process |
| Fideicomiso (Bank Trust) | Within 50km of coast | 50-year renewable trust |
| Fideicomiso (Bank Trust) | Within 100km of borders | 50-year renewable trust |
| Mexican Corporation | Commercial properties only | Business purposes |
| Ejido Land | Communal land areas | Generally not available to foreigners |
Can foreigners legally own property in Mexico and are there any restrictions compared to Mexican citizens?
Foreigners can legally own property in Mexico but face constitutional restrictions that Mexican citizens do not encounter.
Direct property ownership is available to foreigners outside the "restricted zone," which includes areas within 50km of any coastline and 100km from international borders. In these unrestricted areas, foreigners enjoy the same ownership rights as Mexican citizens.
Within the restricted zone, foreigners must purchase property through a fideicomiso (bank trust) or create a Mexican corporation for commercial purposes. The fideicomiso grants foreigners full usage rights, including the ability to sell, lease, inherit, or transfer the property for a renewable 50-year period.
Mexican citizens can own property directly anywhere in the country without these restrictions. This constitutional limitation stems from Mexico's sovereignty protection laws designed to maintain control over strategic coastal and border areas.
It's something we develop in our Mexico property pack.
Which nationalities face specific limitations or additional requirements when buying property in Mexico?
All foreign nationalities face identical constitutional restrictions when purchasing property in Mexico, with no specific country-based discrimination.
The Mexican Constitution applies the same ownership limitations to all non-Mexican citizens regardless of their nationality. American, Canadian, European, Asian, and other foreign buyers all follow the same legal procedures and face the same restricted zone requirements.
However, the purchase process may involve obtaining a permit from the Ministry of Foreign Affairs (SecretarĂa de Relaciones Exteriores) for properties in restricted zones. Buyers must also sign an agreement to submit to Mexican law and waive diplomatic protection rights, which applies universally to all foreign nationals.
Some practical differences may exist in documentation requirements based on bilateral agreements between countries, but these are administrative rather than ownership restrictions. Banking relationships and mortgage availability might vary based on the buyer's home country's financial system compatibility with Mexican institutions.
Are there special rules for purchasing property within the restricted zones near the coast or borders?
Special rules apply to property purchases within Mexico's restricted zones, requiring foreigners to use alternative ownership structures.
The restricted zone encompasses all land within 50 kilometers of any Mexican coastline and 100 kilometers from international borders. Within these areas, foreigners cannot own land directly but must establish a fideicomiso (bank trust) through a Mexican bank.
A fideicomiso allows a Mexican bank to hold legal title while granting the foreign buyer complete beneficial ownership rights for 50 years, renewable indefinitely. The trust holder can sell, lease, mortgage, inherit, or transfer the property without restrictions during the trust period.
Alternatively, foreigners can create a Mexican corporation to purchase property in restricted zones, though this option is primarily used for commercial purposes and requires specific business justification. The corporation must have Mexican majority ownership for residential properties in restricted zones.
Buyers must obtain a permit from Mexico's Ministry of Foreign Affairs before completing purchases in restricted zones, adding 30-60 days to the transaction timeline.
Do foreigners need a specific visa, residency status, or work permit to buy real estate in Mexico?
No visa, residency status, or work permit is required for foreigners to purchase real estate in Mexico.
- Tourist visa holders can legally buy property during their permitted stay
- Non-residents living abroad can purchase Mexican real estate without visiting the country
- Temporary or permanent residents enjoy the same property rights as tourists
- Work permit holders have no additional property ownership advantages
- Retired foreigners without Mexican residency can freely purchase property
The Mexican government welcomes foreign investment in real estate regardless of immigration status. Property ownership and immigration status are completely separate legal matters under Mexican law.
However, obtaining Mexican residency may provide practical benefits such as easier bank account opening, better mortgage rates, and simplified ongoing property management. Residency can also facilitate the property purchase process by providing local identification and address verification.
Don't lose money on your property in Mexico
100% of people who have lost money there have spent less than 1 hour researching the market. We have reviewed everything there is to know. Grab our guide now.
Is it necessary to be physically present in Mexico to complete the property purchase process?
Physical presence in Mexico is not strictly necessary to complete a property purchase, though it requires careful legal preparation.
Buyers can complete transactions remotely by granting power of attorney to a trusted representative, typically a licensed Mexican attorney or real estate professional. The power of attorney must be properly notarized and often requires apostille certification depending on the buyer's home country.
Remote purchases require additional documentation including certified copies of identification, proof of address, and financial documents. Video conferences may be necessary for identity verification and contract explanation by the Mexican notary public.
However, being present in Mexico offers significant advantages including direct property inspection, meeting with attorneys and notaries, understanding local market conditions, and building relationships with service providers. Physical presence also eliminates potential delays and miscommunications that can occur in remote transactions.
It's something we develop in our Mexico property pack.
What are the exact steps and required documents for a foreigner to legally acquire property in Mexico?
The property acquisition process for foreigners follows specific legal steps with required documentation at each stage.
| Step | Action Required | Required Documents |
|---|---|---|
| 1. Property Selection | Choose property and conduct due diligence | Property title, survey, tax records |
| 2. Legal Structure | Determine ownership method (direct/fideicomiso) | Legal assessment, restricted zone verification |
| 3. Professional Team | Hire attorney and select notary public | Legal contracts, notary selection |
| 4. Government Permits | Obtain SRE permit if in restricted zone | Application forms, passport, property details |
| 5. Trust Setup | Establish fideicomiso with Mexican bank | Trust application, beneficiary designation |
| 6. Purchase Agreement | Sign promissory purchase contract | Purchase contract, deposit payment |
| 7. Final Transaction | Complete sale before notary public | Final payment, deed execution |
| 8. Registration | Register property in Public Registry | Notarized deed, tax payments |
Required documents include valid passport, proof of legal entry to Mexico, purchase agreement contracts, bank trust application forms, power of attorney if not present, proof of foreign address, and tax identification if applicable.
Is hiring a local lawyer mandatory, and what role do they play in ensuring the purchase is compliant with Mexican law?
Hiring a local lawyer is strongly recommended but not legally mandatory for property purchases in Mexico.
A Mexican attorney's role includes reviewing purchase contracts, conducting property due diligence, ensuring legal compliance, coordinating with notaries public, handling tax obligations, and providing title insurance guidance. They protect against fraud, verify clear title, and navigate complex Mexican real estate law.
A notary public (notario pĂşblico) is legally required to finalize property transactions in Mexico. Unlike notaries in other countries, Mexican notarios are highly trained legal professionals who verify transaction legality, prepare final deeds, collect taxes, and register properties with government authorities.
While technically possible to proceed without a private attorney by relying solely on the notary public, this approach carries significant risks for foreign buyers unfamiliar with Mexican law. The notary represents the transaction's legality rather than either party's interests specifically.
Legal fees typically range from 1-2% of the property value, providing valuable protection against costly mistakes that could result in property loss or legal disputes.
What are the taxes, fees, and other costs involved in buying and later selling a property in Mexico?
Property transactions in Mexico involve multiple taxes and fees that buyers must budget for beyond the purchase price.
| Cost Category | Amount/Percentage | Payment Timing |
|---|---|---|
| Transfer Tax (ISAI) | 2-4.5% of property value | At closing |
| Notary/Legal Fees | 1-2% of property value | At closing |
| Fideicomiso Setup | $500-$1,000 USD | At closing |
| Annual Trust Fee | $600-$800 USD | Annually |
| Real Estate Commission | 5-7% of property value | At closing |
| Property Registration | 0.5-1% of property value | At closing |
| Annual Property Tax | 0.1-0.3% of assessed value | Annually |
When selling property, foreigners face capital gains tax calculated on the property's appreciation, ranging from 0-35% depending on the gain amount and the seller's tax residency status. Mexican residents may qualify for exemptions on primary residence sales.
Additional selling costs include real estate commissions, notary fees, legal representation, and potential early trust termination fees for fideicomiso properties.
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.
Can foreigners get a mortgage in Mexico, and if so, what are the usual interest rates, conditions, and best tips to secure one?
Foreigners can obtain mortgages in Mexico, though local banks typically impose stricter criteria and higher rates than domestic borrowers face.
As of September 2025, mortgage interest rates for foreigners range from 8-12% annually, significantly higher than rates available to Mexican citizens. Loan terms typically span 10-20 years with down payment requirements of 30-50% of the property value.
Mexican banks require foreign borrowers to demonstrate stable income, good credit history, and often prefer borrowers with Mexican residency status. Documentation includes income verification, bank statements, credit reports, and proof of assets in both home country and Mexico.
- Work with Mexican banks offering English-speaking services like BBVA, Santander, or Banamex
- Consider international mortgage brokers specializing in Mexican real estate
- Establish Mexican bank accounts and credit history before applying
- Provide extensive financial documentation translated and notarized
- Consider developer financing options which may offer better terms
Non-residents typically face higher interest rates and additional documentation requirements compared to Mexican residents, making residency status a valuable consideration for financing purposes.
Which areas are currently considered the best for living, renting out, or capital appreciation, based on the latest livability scores, rental yields, tourism statistics, and growth forecasts?
Mexico's top real estate markets offer distinct advantages for different investment and lifestyle objectives as of September 2025.
For rental yields and tourism-driven appreciation, coastal destinations lead the market. Playa del Carmen and Tulum in the Riviera Maya generate rental yields of 6-9% annually, driven by strong tourism demand and growing expat populations. Puerto Vallarta offers similar yields with more established infrastructure and year-round tourism.
Mexico City provides the strongest long-term capital appreciation potential due to its economic growth, with neighborhoods like Roma Norte, Condesa, and Polanco showing consistent 8-12% annual price increases. The capital's rental market benefits from strong domestic demand and international business presence.
For livability and quality of life, colonial cities excel. San Miguel de Allende ranks highest for safety, healthcare access, and cultural amenities among expat communities. MĂ©rida offers excellent value with growing international recognition, modern amenities, and proximity to beach destinations.
Los Cabos commands premium prices due to luxury tourism but offers limited rental inventory, making it suitable for high-end investment rather than cash flow generation.
It's something we develop in our Mexico property pack.
What is the current breakdown of average property prices per city and region in Mexico?
Property prices vary significantly across Mexico's major markets, reflecting local economic conditions, tourism demand, and infrastructure development.
| City/Region | Average Price Range (USD) | Market Characteristics |
|---|---|---|
| Mexico City | $180,000-$350,000 | Strong economy, diverse inventory |
| Cancun | $130,000-$320,000 | Tourism hub, high rental demand |
| Playa del Carmen | $120,000-$280,000 | Expat favorite, strong appreciation |
| Puerto Vallarta | $160,000-$340,000 | Established market, year-round tourism |
| Los Cabos | $220,000-$500,000 | Luxury market, premium pricing |
| Mérida (Yucatán) | $90,000-$180,000 | Emerging market, excellent value |
| San Miguel de Allende | $150,000-$350,000 | Historic charm, stable demand |
Luxury properties in prime locations command significant premiums, with beachfront condos in Los Cabos and Puerto Vallarta exceeding $1 million USD. Mexico City's premium neighborhoods like Polanco and Santa Fe reach similar price levels for high-end residential properties.
What are the most common mistakes and legal pitfalls foreigners make when buying property in Mexico, and how can they be avoided?
Foreign buyers frequently encounter preventable legal and financial mistakes when purchasing Mexican real estate.
- Attempting to buy ejido (communal) land: Ejido properties cannot be owned by foreigners and lack clear title. Always verify land classification through the National Agrarian Registry before proceeding.
- Skipping comprehensive title searches: Incomplete due diligence can reveal liens, disputes, or ownership issues after purchase. Require complete title history and legal clearance before closing.
- Avoiding fideicomiso in restricted zones: Direct ownership attempts in coastal or border areas result in invalid transactions and potential property loss. Always use proper legal structures.
- Inadequate legal representation: Relying solely on sellers' attorneys or notaries creates conflict of interest situations. Hire independent legal counsel familiar with foreign buyer needs.
- Insufficient property inspections: Hidden structural, environmental, or utility issues can create expensive problems. Conduct thorough professional inspections before purchase.
Prevention strategies include working with established real estate professionals, conducting comprehensive due diligence, using independent legal representation, verifying all permits and licenses, and understanding local market conditions before making purchase decisions.
Professional guidance from experienced attorneys and real estate agents familiar with foreign buyer requirements significantly reduces transaction risks and ensures legal compliance throughout the purchase process.
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.
Mexico's foreign ownership laws provide clear pathways for international real estate investment through established legal structures like fideicomiso trusts.
Success requires understanding constitutional restrictions, working with qualified professionals, and conducting thorough due diligence throughout the purchase process.
Sources
- Riviera Maya Blue - Foreign Citizens Buying Property in Mexico
- Veles Club - Mexico Property Investment Guide
- Global Property Guide - Mexico Buying Guide
- The LatinVestor - Mexico Foreign Real Estate Ownership
- NuHome Mexico - Buying Property in Coastal Areas
- RE/MAX First Choice - Restricted Zone Property Guide
- Riviera Maya Cozy - Restricted Zone Property Buying
- Mexico Life - Restricted Zone FAQ