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Buyer Guide

How Foreigners Can Buy Property in Mexico

This article is general information only and is not legal, tax, or financial advice. Every transaction is different — confirm current requirements with an independent Mexican attorney before purchasing.

The restricted zone

Mexican law restricts direct foreign ownership of land within roughly 50 km of the coastline and 100 km of a border — this includes all of the Riviera Maya. Foreigners buy coastal property indirectly, through a bank trust rather than direct title.

The fideicomiso

A fideicomiso is a renewable, typically 50-year bank trust: a Mexican bank holds legal title on your behalf while you retain full beneficial rights to use, rent, renovate, sell, or pass on the property. An annual trustee fee applies to the bank for administering the trust.

Closing costs

Buyers should budget for several closing-cost line items in addition to the purchase price, including a one-time acquisition tax (ISAI, commonly in the 2%–5% range of the purchase price), notary and registration fees, and the initial fideicomiso setup fee if applicable. Ask your attorney and notary for an itemized closing statement before signing.

The notary's role

In Mexico, a notary public (notario público) is a highly qualified legal official who verifies the transaction, calculates and collects applicable taxes, and formally records the deed or trust. Ask your attorney to walk you through the specific notary process for your purchase.

Due diligence

Ownership expenses

Annual property tax (predial) in Mexico is generally low relative to the U.S. — commonly in the range of 0.05%–1.2% of cadastral (assessed) value, though rates vary by municipality. Confirm current rates with the local tax office.

Buying remotely

Much of the process — attorney review, escrow setup, and document exchange — can be coordinated remotely with local representation, though certain notarization steps may require in-person signing or a power of attorney arranged through your attorney.

Questions to ask an independent Mexican attorney

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