BUYER’S GUIDE · FOREIGN BUYERS
Buying property in Mexico as a foreigner.
It’s legal, common, and well-established — thousands of foreigners close on Mexican property every year. It just runs on a different set of rules than what you’re used to at home. Here’s what actually matters.
Can foreigners even own property in Mexico?
Yes — outright, in most of the country. The one exception is the "restricted zone": land within 50km of the coastline or 100km of an international border. Since most of Mexico’s most popular markets for foreign buyers (Mazatlán, Puerto Vallarta, Cozumel, Los Cabos) sit inside that zone, foreign buyers there hold title through a fideicomiso — a bank trust — or a Mexican corporation for commercial purchases.
The fideicomiso, explained simply
A Mexican bank holds the legal title in trust; you hold every beneficial right that matters — you can live in it, rent it, sell it, renovate it, or leave it to your heirs. It renews in 50-year terms indefinitely. Expect roughly $500–$1,000 USD to set one up and $500–$700 USD a year to maintain it.
What it actually costs beyond the price tag
Budget 5–8% of the purchase price for closing: acquisition tax (~2%), notario fees, public registry fees, appraisal, and fideicomiso setup if applicable. If you resell later, factor in potential ISR (capital gains) withholding too.
The process, step by step.
Get your funds organized
Most foreign buyers pay cash or finance from their home country — Mexican mortgages for non-residents are rare and expensive. Know your number before you tour anything.
Clarify who represents you
Ask any agent to explain who they represent, what buyer-side work is included, and how compensation would be handled before you commit.
Make an offer & put down earnest money
Offers are typically backed by a good-faith deposit held by the notario or in escrow, not the seller directly.
Title search & fideicomiso setup
If the property sits in the restricted zone, your bank trust application starts now — it typically takes 4–8 weeks.
Sign the contrato de compraventa
This is the binding purchase agreement — price, timeline, and conditions. Have it reviewed independently before you sign.
Close with a notario público
Unlike the U.S., a notario — a government-appointed attorney, not a title company — handles the closing and title transfer.
Register the deed
The notario registers your title with the Public Registry of Property. Keep certified copies — you’ll need them if you ever sell.
Don’t navigate this with the seller’s agent.
Meet a bilingual buyer’s agent, confirm whom they represent, and put the relationship in writing before the negotiation starts.
Get Your Own Agent — Free