Can I Actually Own Property in Mexico?

Yes. Foreigners can own property throughout the interior of Mexico outright, in their own name, with no special permissions or citizenship requirements.

The one exception is the "restricted zone" — land within 50 km of the coastline or 100 km of an international border. This covers most of the areas foreigners actually want to buy: Los Cabos, Puerto Vallarta, the Riviera Maya, Cancún. In these zones, you buy through a fideicomiso, a bank trust, instead of holding the title directly. It sounds more complicated than it is — we walk through exactly what it means below.

What Is a Fideicomiso?

A fideicomiso is a trust arrangement, set up through a Mexican bank, that allows foreigners to hold beneficial rights to restricted-zone property.

•      A Mexican bank holds the legal title, as trustee — but only administratively

•      You, as the beneficiary, have full rights to use, rent, sell, renovate, or pass on the property

•      The bank cannot use, claim, or interfere with the property in any way

•      Trusts run in renewable 50-year terms

•      Setup costs roughly $1,500-2,500 USD; annual trustee fees run $500-700 USD

For larger purchases, especially commercial property, some buyers instead hold property through a Mexican corporation. Your notario can advise which structure fits your situation.

The Purchase Process

1

Make an offer

Your agent submits a formal offer. A good-faith deposit, typically 5-10%, is held in escrow.

2

Sign a purchase agreement

Price, terms, and timeline are set — typically 30-60 days to closing.

3

Due diligence

A notario público — a specialized, government-appointed attorney, not a US-style notary — verifies clean title, checks for liens, and confirms correct registration.

4

Set up the fideicomiso, if applicable

Your notario coordinates with a Mexican bank to establish the trust, in parallel with due diligence.

5

Closing

You, or a representative under power of attorney, sign at the notario's office. Funds transfer and the property is registered with the Public Registry — you don't need to be in Mexico to close.

6

Receive your documents

You receive your deed (escritura) and fideicomiso agreement, formally recorded within a few weeks.

What It Costs

Closing costs in Mexico run 5-8% of the purchase price — higher than in the US or Canada, and worth budgeting for from the start.

•      Acquisition tax: 2-4%, varies by state

•      Notario fees: roughly 1-1.5%

•      Registry fees

•      Fideicomiso setup, if applicable

•      Title insurance (optional, recommended)

Ongoing costs are modest: annual property tax (predial) is low relative to the US or Canada, often just a few hundred dollars even on higher-value homes, plus the fideicomiso renewal fee and HOA dues where applicable.

Financing Your Purchase

Most foreign buyers pay cash, but financing options exist:

•      Mexican bank mortgages for non-residents — higher rates, shorter terms than you're used to

•      A small number of US-based lenders now offer cross-border loans for Mexican vacation property

•      Developer financing, common on pre-construction purchases, often with flexible terms

•      A HELOC or refinance from your home country — frequently simpler than qualifying for Mexican credit

Frequently Asked Questions

Do I need to be a resident of Mexico to buy property?

No. You don't need residency or citizenship to buy — a tourist visa is enough to complete a purchase.

Do I need to be physically present to close?

No. You can grant power of attorney to a representative and close remotely.

Is my investment protected?

Yes — the fideicomiso and the notario process are well-established, government-regulated structures used by thousands of foreign buyers every year.

Can I rent out my property?

Yes, full rights to rent, sell, or pass on the property are included under both direct ownership and the fideicomiso.

What happens to the fideicomiso when I sell or pass away?

It can be transferred to a buyer at sale, or to designated beneficiaries — this is set up in the trust agreement from the start.

Ready to see what's available? Chat with us on WhatsApp and we'll walk you through your specific situation — no obligation.