Foreigners Can Buy Property in Mexico

To start, in general, there are no legal restrictions on foreigners purchasing real estate in Mexico. Foreigners can directly own property in non-restricted zones without the need for a trust or permit.

However, there are restrictions on foreigners owning directly in prohibited zones, which include regions close to the coast and borders. In some locations, foreigners may purchase real estate through a “Fideicomiso“, a legally binding trust in which a Mexican bank serves as the trustee. The bank keeps the title in trust while the fideicomiso gives the foreign buyer all ownership rights and privileges. Foreigners are able to use and enjoy complete control of the property thanks to this safe trust arrangement.

A “Restricted Zone Permit,” which Mexico adopted, enables foreigners to own real estate directly within restricted zones without the requirement for a trust. To understand the exact rules and procedures involved, it is advisable to speak with a local real estate expert or attorney. However, this permission is subject to a number of conditions and criteria. Since buying property comes along with many requirements and complex procedures, buyers should get current and competent guidance.

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Step by Step: Property Purchase Process

Property acquisition in Mexico is a thrilling and lucrative investment. Here are some general actions to take to guide you through the procedure:

1. Research and choose the location:
There are many different regions and cities in Mexico to take into consideration. Based on your interests, such as climate, facilities, lifestyle, and closeness to services, research various locations.

2. Work with a local real estate agent:
It is important to work with a trustworthy real estate agent who is familiar with the area’s housing market. They can assist you in locating appropriate properties, negotiating rates, and assisting you with legal processes.

3. Property investigation and search: Work with your real estate agent to find properties that fit your criteria. It is important to conduct a thorough inspection. It includes the verification of the ownership, the existence of any unpaid debts, and the property’s conformity with the law. To help with due diligence, think about engaging a local attorney.

4. Submit an offer and negotiate: After locating a property, you must submit an offer. With the seller or their agent, haggle over the purchase’s price and conditions.

5. Sign a purchase agreement: Create a purchase agreement (contrato de compraventa). Both parties should agree on the terms. Additionally, the financing part has to be clarified. The contracts describes the purchase price, the payment schedule, and any other relevant terms and conditions.

6. Hire a notary: It is typical in Mexico to include a notary (notario publico) in real estate transactions. The notary ensures the accuracy of all legal criteria, conducts title searches, and puts together the official paperwork for property transfers.

7. Closing and ownership transfer: A notary will witness your signature on the legal transfer documents during the closing. The payment of the agreed-upon purchase amount as well as closing costs, such as taxes, notary fees, and registration fees are now required.

8. Register the property: The notary will register the property with the Public Property Registry when the transaction is complete to ensure that the law recognizes your ownership rights.

Initial Expenses When Buying Property in Mexico

The notary will inform you of the amount of each one of the payments, so you should be prepared to cover these additional expenses.

The initial payments are:

  • Down Payment (5-10% of the sales price)
  • Payment of Notary Fees (0.07-1.12% of the sales price)
  • Registration in the Public Registry of Property (0.02-1.8% of the sales price)
  • Real Estate Acquisition Tax (0.18-4.15% of the sales price)
  • Real Estate Agent Fees (3-6% of the sales price +16% VAT)

Advice for Buying Property in Mexico

The following advice can help you and guide you in making the best choice because purchasing property is a very significant decision:

• Hire specialized assistance:
Having real estate agents’ expertise and support is crucial during the purchasing and selling processes since they will assist you at every stage of the procedure, from creating a budget to signing the deeds.
• Browse real estate portals:
You should search on real estate websites, to obtain a broad sense of the features and costs of the properties in the area you are looking for.
• Arrange visits:
It is recommended that you go in person to fully understand the features of your prospective property. Additionally, it is crucial never to send money without first meeting the seller. Thus, you should always be careful to avoid frauds.


Finally, buying property in Mexico as a foreigner can be an excellent opportunity to own a part of this vivacious and unique nation. They key for a successful purchase is to know the market, laws and to be careful.  Whether purchasing property in Mexico is done for personal enjoyment, rental income, or long-term investment, it can be a rewarding experience with careful deliberation, thorough research, and expert counsel.

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