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
Yes, non-citizens can legally own land in Mexico, but specific restrictions apply depending on the property's location.
Mexican law allows foreigners to purchase real estate throughout the country, with special regulations for properties within 50 kilometers of coastlines or 100 kilometers of international borders. These restricted zones require foreigners to use a bank trust system called fideicomiso, while properties outside these areas can be owned directly.
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 trust for coastal and border areas.
No residency or visa is required to purchase property, and the process can be completed remotely with proper legal assistance.
| Property Location | Ownership Method | Key Requirements |
|---|---|---|
| Outside restricted zones | Direct ownership | RFC tax ID, valid passport |
| Coastal areas (50km from coast) | Fideicomiso bank trust | SRE permit, Mexican bank trustee |
| Border areas (100km from border) | Fideicomiso bank trust | SRE permit, Mexican bank trustee |
| Commercial properties (restricted zones) | Mexican corporation | Business registration, corporate structure |
| Ejido communal land | Long-term lease (limited) | Government approval, specific permits |
Can a non-citizen legally own land in Mexico, and are there any outright restrictions?
Non-citizens can legally own land in Mexico under Mexican constitutional law, but geographic restrictions apply to specific areas.
Foreigners cannot directly own land within Mexico's "restricted zones" - areas within 50 kilometers of any coastline or 100 kilometers of international borders. These zones cover popular destinations like CancĂșn, Puerto Vallarta, Los Cabos, and Tijuana. Outside these restricted zones, foreigners enjoy the same property ownership rights as Mexican citizens.
Within restricted zones, foreigners must use a fideicomiso (bank trust) system where a Mexican bank holds legal title while the foreigner maintains beneficial ownership rights. This arrangement provides full control over the property, including the right to sell, rent, renovate, and pass it to heirs. As of June 2025, approximately 60% of Mexico's coastline falls within these restricted zones.
The fideicomiso trust lasts for 50 years and can be renewed indefinitely. Annual trust fees typically range from $500 to $1,500 USD depending on the bank and property value.
It's something we develop in our Mexico property pack.
What types of property can foreigners buy in Mexico compared to Mexican citizens?
Foreigners can purchase most property types in Mexico, with only minor limitations compared to Mexican citizens.
Mexican citizens can buy any property type anywhere in the country without restrictions. Foreigners face limitations primarily on ejido land (communal agricultural land) and certain properties in restricted zones. Ejido land represents approximately 60% of Mexico's territory and typically cannot be purchased by foreigners unless it has been converted to private property through a specific legal process.
Foreigners can freely purchase condominiums, single-family homes, commercial buildings, industrial properties, and raw land outside restricted zones. Within restricted zones, residential properties require a fideicomiso, while commercial properties can be owned through a Mexican corporation structure.
Certain strategic sectors like petroleum, petrochemicals, and radioactive minerals remain off-limits to foreign ownership entirely. Additionally, properties located on beaches, archaeological sites, or classified as national patrimony cannot be privately owned by anyone, Mexican or foreign.
As of mid-2025, foreign buyers account for approximately 15% of all real estate transactions in Mexico's primary markets.
Are there any special rules or limitations for foreigners buying property in the "restricted zones" near coastlines or borders?
Restricted zones require foreigners to use specific legal structures, with the fideicomiso bank trust being the most common method for residential properties.
| Property Type | Ownership Structure | Key Limitations |
|---|---|---|
| Residential homes/condos | Fideicomiso bank trust only | Must use Mexican bank as trustee |
| Commercial properties | Mexican corporation | Cannot be used for personal residence |
| Industrial facilities | Mexican corporation | Business purpose only |
| Raw land (residential intent) | Fideicomiso bank trust | Development restrictions may apply |
| Raw land (commercial intent) | Mexican corporation | Cannot convert to residential later |
| Beachfront properties | Fideicomiso (if within 20m of high tide) | Federal maritime zone considerations |
| Border region properties | Fideicomiso or corporation | Additional security clearances may apply |
The fideicomiso process requires obtaining a permit from Mexico's Ministry of Foreign Affairs (SRE) before purchase. Processing time typically takes 15-30 business days and costs approximately $1,000-2,000 USD in fees. The permit must specify the exact property and cannot be transferred to different properties.
Beachfront properties face additional complexity due to the Federal Maritime Zone, a 20-meter strip from the high tide line that belongs to the Mexican government. Properties within this zone require special concessions that must be renewed every few years.
Do I need to be a resident or have a visa to buy property in Mexico as a non-citizen?
No residency or visa is required to purchase property in Mexico as a non-citizen.
Mexico allows tourists and non-residents to buy real estate using only a valid passport and Mexican tax identification number (RFC). You can complete a property purchase while visiting Mexico on a tourist visa, which allows stays up to 180 days for most nationalities. The property purchase process itself does not require any specific visa category or residency status.
However, if you plan to live in Mexico permanently, you will need to obtain proper residency status separately from your property ownership. Temporary residency requires proof of monthly income of approximately $2,700 USD or savings of $45,000 USD. Permanent residency requires monthly income of $4,500 USD or savings of $180,000 USD as of June 2025.
Property ownership can actually help qualify for residency visas if you meet the financial investment thresholds. Some Mexican consulates consider real estate investments when evaluating residency applications, though property ownership alone does not guarantee visa approval.
Many foreign property owners maintain tourist status and visit their Mexican properties periodically without establishing residency.
Do I need to be physically present in Mexico to purchase property, or can it be done remotely?
Property purchases can be completed entirely remotely through a legal power of attorney arrangement.
You can grant power of attorney to a trusted representative, typically a Mexican attorney or real estate professional, to complete the entire transaction on your behalf. The power of attorney document must be notarized in your home country and apostilled for international recognition, then translated into Spanish by a certified translator in Mexico.
Remote purchase steps include selecting and negotiating for the property through online platforms or local representatives, signing purchase agreements via courier or electronic methods, transferring funds through international wire transfers or escrow services, and having your representative complete the closing process at the Mexican notary's office.
However, most buyers choose to visit the property at least once before finalizing the purchase. This allows for personal inspection of the property condition, neighborhood assessment, and direct meetings with key professionals like attorneys and notaries. Remote purchases carry higher risks of misrepresentation or fraud, making due diligence more challenging.
As of mid-2025, approximately 25% of foreign property purchases in Mexico are completed partially or entirely remotely, with this percentage increasing since the COVID-19 pandemic.
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What documents and steps are required for a non-citizen to complete a property purchase in Mexico?
The property purchase process requires specific documentation and follows a structured sequence of steps.
Essential documents include a valid passport, Mexican tax ID (RFC) obtained from SAT (tax authority), proof of address from your home country, bank statements or proof of funds, signed purchase agreement (contrato de compraventa), and if purchasing in a restricted zone, an SRE permit from the Ministry of Foreign Affairs.
The purchase process follows these steps: property identification and price negotiation, signing of a purchase agreement with a deposit (typically 10-20% of purchase price), hiring a Mexican notary public to conduct due diligence and title search, applying for SRE permits if in restricted zones, establishing a fideicomiso if required, obtaining property appraisal and tax assessments, final contract signing and fund transfer, and property registration with the Public Registry of Property.
The entire process typically takes 30-90 days depending on property location and complexity. Notary fees range from 1-2% of the property value, while acquisition taxes vary by state from 2-5% of the purchase price. Total closing costs usually equal 5-8% of the property value.
It's something we develop in our Mexico property pack.
Is hiring a lawyer mandatory for foreigners buying real estate in Mexico, and what should I look for in one?
While not legally mandatory, hiring a Mexican real estate attorney is strongly recommended for foreign buyers due to the complexity of Mexican property law.
A qualified Mexican real estate lawyer provides title verification and due diligence, contract review and negotiation, SRE permit and fideicomiso establishment, tax obligation guidance, and closing process coordination. Many foreign buyers who skip legal representation encounter problems with unclear titles, hidden liens, or improper documentation.
When selecting an attorney, look for these qualifications: Mexican law degree and current bar membership, specific experience with foreign real estate transactions, fluency in your native language, positive references from other foreign clients, and transparent fee structures. Avoid lawyers who guarantee unrealistic timelines, request large upfront payments, or seem unfamiliar with fideicomiso processes.
Attorney fees typically range from $1,500 to $5,000 USD depending on transaction complexity and property value. This investment often saves money by preventing costly mistakes and ensuring proper legal compliance.
Many reputable attorneys offer fixed-fee packages for standard residential purchases, making costs predictable and transparent.
What are the taxes, fees, and ongoing costs involved in buying, owning, and reselling property as a foreigner?
Property ownership in Mexico involves multiple tax obligations and fees that vary by state and property type.
| Cost Category | Rate/Amount | When Due |
|---|---|---|
| Acquisition tax (ISAI) | 2-5% of purchase price | At closing |
| Notary and registry fees | 1-2% of purchase price | At closing |
| Annual property tax (Predial) | 0.1-0.3% of cadastral value | Annually (January-March) |
| Fideicomiso annual fee | $500-1,500 USD | Annually |
| Capital gains tax (sale) | Up to 35% of profit | Upon sale |
| Rental income tax | 25% flat rate (non-residents) | Monthly/annually |
| Property insurance | 0.1-0.3% of property value | Annually |
Capital gains tax can be reduced significantly if you establish Mexican tax residency and hold the property for more than two years. Non-resident sellers face a 25% withholding tax on the total sale price, while residents pay progressive rates on actual capital gains ranging from 1.92% to 35%.
Rental income taxation offers two options: a 25% flat rate on gross rental income for non-residents, or registering with SAT to deduct expenses and pay progressive rates. The second option often results in lower taxes but requires more complex reporting.
Property taxes in Mexico are generally much lower than US or Canadian rates, with most properties paying $200-1,000 USD annually in predial taxes.
Can non-citizens get a mortgage in Mexico, what banks offer them, and what are the typical interest rates and conditions?
Non-citizens can obtain mortgages in Mexico through both Mexican banks and specialized cross-border lenders, though requirements and terms vary significantly.
Mexican banks offering foreigner mortgages include BBVA Bancomer, Banamex (Citigroup), Santander Mexico, and Scotiabank Mexico. These institutions typically require Mexican residency status, proof of income, and down payments of 20-30%. Interest rates for Mexican bank mortgages range from 8-12% annually as of June 2025.
Cross-border lenders like Mexlend, Global Mortgage, and Yave specialize in financing for foreign buyers. These lenders often accept foreign income documentation and may not require Mexican residency. However, they typically require larger down payments (30-40%) and charge higher interest rates (9-14% annually).
Standard mortgage requirements include proof of income equivalent to 3-4 times the monthly payment, credit score of 650+ (US/Canadian), debt-to-income ratio below 40%, property appraisal and insurance, and life insurance coverage. Loan terms typically range from 15-30 years, with some lenders offering loans up to $2 million USD.
Many foreign buyers choose to finance properties through home equity loans or lines of credit in their home countries due to more favorable rates and familiar lending processes.
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 best areas for foreigners to invest in Mexico based on liveability, rental yields, tourism stats, and capital growth?
Mexico offers diverse investment opportunities across coastal destinations, major urban centers, and emerging markets, each with distinct advantages for foreign investors.
Top coastal destinations for investment include Tulum with rental yields of 8-15% annually, driven by its boho-chic appeal and Instagram fame, though infrastructure challenges persist. Playa del Carmen offers more stable 5-6% yields with better amenities and transportation links. Puerto Vallarta provides consistent 5-6% returns with a large established expat community and year-round tourism. Los Cabos delivers 4-6% yields but commands higher property prices and attracts luxury travelers.
Major urban centers present different opportunities. Mexico City's prime neighborhoods like Polanco, Roma Norte, and Condesa offer 3-5% rental yields but strong capital appreciation potential of 5-8% annually. Guadalajara provides better rental yields of 5-7% with lower property prices and growing tech industry presence. Monterrey delivers 4-6% yields with Mexico's strongest economy and highest per-capita income.
Emerging markets like MĂ©rida offer exceptional value with 6-8% rental yields and rapid property appreciation as it becomes a top expat destination. MazatlĂĄn provides 7-9% yields with significantly lower entry costs than established beach destinations. These markets show strong growth potential but require more careful due diligence.
Tourism statistics favor coastal areas, with CancĂșn-Riviera Maya receiving over 30 million visitors annually, while Puerto Vallarta welcomes approximately 5 million visitors per year.
How do real estate prices vary by city or region in Mexico right now, and where is the best value?
Mexican real estate prices vary dramatically by location, with coastal and major urban areas commanding premium prices while secondary cities offer exceptional value.
| Market Category | Price Range (USD) | Price per mÂČ (USD) |
|---|---|---|
| Mexico City (prime areas) | $200,000-800,000 | $2,000-4,000 |
| CancĂșn/Riviera Maya condos | $150,000-500,000 | $1,500-3,500 |
| Puerto Vallarta | $180,000-600,000 | $1,800-3,200 |
| Los Cabos | $250,000-1,200,000 | $2,500-5,000 |
| Guadalajara | $120,000-400,000 | $1,200-2,600 |
| Monterrey | $150,000-500,000 | $1,400-3,800 |
| MĂ©rida | $80,000-300,000 | $800-2,000 |
Best value markets as of June 2025 include MĂ©rida, where colonial homes start around $80,000 and modern condos average $150,000, representing exceptional value given the city's rapid growth and UNESCO World Heritage status. MazatlĂĄn offers beachfront condos from $120,000 with strong rental potential. Queretaro provides urban investment opportunities from $100,000 with one of Mexico's fastest-growing economies.
Premium markets like Los Cabos and Tulum command the highest prices but offer luxury amenities and established tourism infrastructure. These areas see average annual appreciation of 3-5% but require higher initial investments.
Regional price trends show continued strength in secondary cities as remote work enables more flexible living arrangements and domestic migration increases.
What are the common mistakes foreigners make when buying property in Mexico and how can I avoid them?
Foreign buyers in Mexico frequently encounter predictable pitfalls that can be avoided with proper preparation and professional guidance.
The most critical mistake is failing to verify clear title and property status. Always conduct thorough title searches through the Public Registry of Property, verify the property has no liens or encumbrances, confirm tax payments are current, and ensure the seller has legal authority to sell. Properties with unclear titles can result in total loss of investment.
Another major error is purchasing ejido land without proper legal conversion to private property. Ejido land cannot be legally owned by foreigners and conversion requires complex government processes that may not be completed. Always verify land classification before purchase and avoid properties without clear private title.
Underestimating total costs leads to budget problems. Factor in acquisition taxes (2-5%), notary fees (1-2%), annual property taxes, fideicomiso fees for restricted zones, insurance costs, and maintenance expenses. Many buyers budget only for the purchase price and face financial strain from unexpected costs.
Skipping professional help proves costly in the long term. Always hire qualified Mexican attorneys for legal guidance, use licensed notaries for closings, engage local property inspectors, and work with experienced local real estate agents familiar with foreign transactions.
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.
Foreign property ownership in Mexico operates under a well-established legal framework that provides genuine ownership rights while requiring specific compliance procedures.
Success depends on understanding the restricted zone requirements, working with qualified professionals, and conducting thorough due diligence throughout the purchase process.
Sources
- Mexico Relocation Guide - Foreign Property Ownership Rules
- TheLatinvestor - Mexico Real Estate for Foreigners
- Global Property Guide - Mexico Buying Guide
- Mexlaw - Foreign Investment FAQ
- Cozumel Living - Foreigners Property Guide
- Primerus - Foreign Investment in Mexican Real Property
- Associa Online - Buying a Home in Mexico
- Riviera Maya Cozy - Restricted Zone Property Buying
- Mexican Consulate UK - Property Acquisition Services
- Mexperience - Closing Costs and Taxes