The essentials
- Foreigners can own Mexican property. Within 100 km of a border or 50 km of the coast (the restricted zone), residential property is held through a bank trust — a fideicomiso — lasting up to 50 years and renewable (Foreign Investment Law, Article 13).
- Outside the restricted zone, foreigners can hold title directly after agreeing to the Constitution's foreign-ownership clause with the Ministry of Foreign Affairs (Article 10-A).
- A notario público — a senior, state-appointed lawyer — executes the sale, checks the title and registers the deed.
More things to know
- Closing costs are commonly estimated at 5–8% of the price, including acquisition tax, notary fees, appraisal, registration and trust setup.
- Rent first, check the title and liens, and walk away from ejido land that hasn't been converted to private ownership.
In this guide
Buying a home is one of the biggest decisions in a move to Mexico, and one of the easiest to rush. The legal path for foreigners is well established — millions of homes near the coast are held in bank trusts — but the process differs from the US and Canada in ways that matter: the notary does far more than notarize, and due diligence is your responsibility.
If you're still renting, start with our renting guide — most people who buy well rent in the area for a year first.
Can foreigners buy property in Mexico?
Yes. The rules depend on where the property is:
| Location | How a foreigner holds residential property | Legal basis |
|---|---|---|
| Restricted zone: within 100 km of a border or 50 km of the coast | Through a bank trust (fideicomiso) with you as beneficiary | Constitution, Article 27; Foreign Investment Law, Articles 11–14 |
| Everywhere else | Direct ownership in your name, after agreeing to the Constitution's foreign-ownership clause with the Ministry of Foreign Affairs | Foreign Investment Law, Article 10-A |
Popular places like Puerto Vallarta, Playa del Carmen, Mazatlán, La Paz and much of Baja California fall inside the restricted zone. Inland cities such as Mexico City, Guadalajara, San Miguel de Allende and Querétaro don't.
How a fideicomiso (bank trust) works
In a fideicomiso, a Mexican bank holds title as trustee and you are the beneficiary, with the right to use, rent out, improve and sell the property, and to name who inherits your rights.
- Term: up to 50 years, renewable at your request (Article 13).
- Permit: the bank needs a permit from the Ministry of Foreign Affairs (SRE) to hold the property for a foreign beneficiary (Article 11). SRE must decide within 5 business days at its central office or 30 at state offices, or the request is treated as approved (Article 14).
- Costs: a setup fee and an annual trustee fee charged by the bank — ask several banks for quotes, as fees vary.
- Buying an existing trust: when you buy a home already held in a fideicomiso, the seller's rights can be assigned to you or a new trust created; your notary will advise which applies.
Mexican companies with foreign shareholders can also hold property in the restricted zone, mainly for non-residential uses (Article 10). For a home, the fideicomiso is the standard route.
Who's involved in a Mexican property purchase
| Who | Their role |
|---|---|
| Notario público | A senior lawyer appointed by the state who executes the deed, verifies title and liens, calculates and withholds taxes, and registers the sale. The notary is neutral — not your advocate. |
| Real-estate agent | Finds properties and negotiates. Ask whether they belong to a professional association such as AMPI, and get references. |
| Your own lawyer | Optional but valuable, especially for pre-construction, land or anything unusual: reviews contracts and represents your interests. |
| Bank (trustee) | Holds title in a fideicomiso and charges the trust fees. |
| Appraiser | Produces the official valuation (avalúo) used to calculate taxes. |
Step by step: from offer to deed
- Make an offer in writing, subject to due diligence.
- Sign a promissory agreement (contrato de promesa de compraventa) setting the price, deposit, deadlines and conditions. Pay the deposit into escrow or to the notary rather than directly to the seller.
- Due diligence: the notary checks the title history and requests a certificate of no liens (certificado de libertad de gravamen) from the public property registry; confirm property tax (predial) and water bills are paid up.
- Permits and trust: in the restricted zone, choose a bank and start the fideicomiso; outside it, the notary files your agreement with the Ministry of Foreign Affairs.
- Appraisal (avalúo) for tax purposes.
- Closing: sign the deed (escritura) before the notary and pay the balance and closing costs.
- Registration: the notary registers the deed with the public property registry. Ask for a copy and confirm registration is complete.
- After closing: transfer the predial account, water and electricity into your name, and insure the property.
Closing costs
| Cost | What it is |
|---|---|
| Acquisition tax | A transfer tax set by each state or municipality, calculated on the price or appraised value |
| Notary fees | For drafting and executing the deed and handling filings |
| Appraisal | The official valuation |
| Registration and certificates | Public property registry fees, lien certificate and other documents |
| Fideicomiso setup and permit | In the restricted zone only; plus the annual trust fee afterwards |
| Your own lawyer and translations | Optional |
Together these are commonly estimated at 5–8% of the price; ask the notary for a written estimate early, because the acquisition tax rate depends on the location.
Due diligence checklist
- The seller on the title is the person selling (or has a valid power of attorney).
- A current certificate of no liens from the public property registry.
- Predial and water accounts are paid up to date.
- The land isn't ejido (communal) land, or has been fully converted to private ownership (dominio pleno).
- Construction matches permits and the registered description.
- For condos: the building rules (régimen de condominio), fees, reserve fund and pending assessments.
- For pre-construction: the developer's track record, permits, and where your payments are held.
- Practical checks from the renting checklist: water supply, flooding, noise and internet.
Red flags to walk away from
Owning: ongoing costs and renting it out
- Predial (annual property tax) — low by North American standards, often with a discount for paying early in the year.
- Trust fee each year if you own through a fideicomiso.
- Condo fees, maintenance and insurance — especially for coastal homes in hurricane areas.
- Rental income from a Mexican property is Mexican-source income; you'll typically need an RFC and to file in Mexico. See taxes for expats.
When you sell, the primary-residence exemption may apply if you're a Mexican tax resident — see the home-sale exemption. Make a Mexican will and name beneficiaries in your fideicomiso so your heirs aren't left with a lengthy process.
Paying for it
Most foreign buyers pay cash. Mexican mortgages are available to some residents but are less common and usually more expensive than at home; other options include developer financing on new projects or borrowing against property in your home country. Move large sums carefully — see moving money to Mexico.
Keep reading
Housing · Renting
Renting in Mexico
How long-term renting works in Mexico for newcomers: where to search, what landlords ask for (aval, póliza jurídica, deposits), what to inspect before signing, and how to avoid rental scams.
Taxes
Taxes for expats
How taxes work when you move to Mexico: when you become a Mexican tax resident under the Federal Tax Code, what Mexico taxes and at what rates, selling a home, property taxes, and what US citizens must keep filing.
Money
Banking & money
How expats handle money in Mexico: the cards to bring, opening a Mexican bank account, moving money from the US or Canada cheaply, SPEI and phone-number transfers, avoiding ATM and exchange fees, and paying bills.
Retirement
Retire in Mexico
A complete guide to retiring in Mexico in 2026: what it costs, which residency fits retirees, how Social Security and Medicare work from Mexico, healthcare options, the best towns for retirees, and the paperwork to plan for.
Frequently asked questions
Can Americans buy property in Mexico?
Yes. Outside the restricted zone they can own property directly; within 100 km of a border or 50 km of the coast, residential property is held through a bank trust (fideicomiso) for up to 50 years, renewable.
Is a fideicomiso safe?
It's the standard, legally established structure for foreign ownership in the restricted zone. You're the beneficiary with rights to use, rent, sell and pass on the property; the bank acts as trustee under a permit from the Ministry of Foreign Affairs.
What are closing costs when buying in Mexico?
Commonly estimated at 5–8% of the price, including the state or municipal acquisition tax, notary fees, appraisal, registration and — in the restricted zone — trust setup.
Do I need a lawyer if there's a notary?
Not legally, but it's wise. The notary is neutral and executes the sale; your own lawyer represents your interests, especially for pre-construction, land or complex deals.
Do I need residency to buy property in Mexico?
No. Foreigners can buy without residency, though owning property doesn't by itself give you the right to live in Mexico.
Sources & official references
- Ley de Inversión Extranjera (last reform DOF 27-05-2024), Articles 10–14
- Constitución Política de los Estados Unidos Mexicanos, Article 27
- AMPI — Mexican Association of Real Estate Professionals
This page is general information, not legal or tax advice. Consulates interpret rules differently — confirm with your consulate or a licensed professional before acting.