If you’re considering buying property in Mexico as a foreigner, you’re not alone. With more expats relocating to Mexico than ever before, Mexican real estate is becoming an increasingly popular investment and lifestyle opportunity for Americans, Canadians, Europeans, and Australians alike.
In this article—filmed on-site at the beautiful Rio Plaza Hotel in Guadalajara—we sat down with our trusted local real estate partner, Angie Ardi, to answer the top questions we receive about buying property in Mexico as a foreigner. Whether you’re looking for a vacation home, an investment property, or a long-term residence, this guide walks you through the essentials of Mexican real estate law, trust structures, taxes, and more.
Can Foreigners Really Own Property in Mexico?
Yes, foreigners can absolutely own property in Mexico—but there’s a caveat. While the Mexican Constitution originally restricted foreign land ownership, a legal workaround called a fideicomiso (bank trust) makes buying property in Mexico as a foreigner both possible and secure.
This applies primarily to what’s known as the “Restricted Zone,” which includes areas within 50 km (about 31 miles) of the coast and 100 km (about 62 miles) of the country’s borders. This includes hotspots like Tulum, Cancun, Los Cabos, and Puerto Vallarta—some of the most sought-after areas in Mexican real estate.
What Is a Fideicomiso and How Does It Work?
A fideicomiso is a bank trust that allows foreigners to enjoy full rights to use, lease, improve, sell, and inherit property located in restricted zones. While the bank technically holds the title, you as the beneficiary maintain all practical ownership rights. The trust is renewable every 50 years, and yearly maintenance fees apply.
This system gives foreigners legal security while allowing Mexico to maintain its constitutional control over sensitive geographic areas. If you’re buying property in Mexico as a foreigner along the coast, the fideicomiso is non-negotiable.
Where Can Foreigners Buy Property in Mexico Without a Trust?
If you’re looking at Mexican real estate inland—such as in Guadalajara, Mexico City, or San Miguel de Allende—the fideicomiso may not be required. In many of these areas, foreigners can hold direct title, especially if they have residency status.
That said, Mexico’s laws can vary by region and evolve frequently. We always recommend working with a local expert to confirm whether you’ll need a trust or can purchase property outright in your desired location.
Renting Out Property as a Foreigner
One of the most attractive aspects of buying property in Mexico as a foreigner is that there are no restrictions on renting it out. Whether you’re planning to Airbnb a beachfront condo in Playa del Carmen or lease a long-term home in Chapala, you can legally collect rental income—just remember to factor in local taxes and reporting requirements in both Mexico and your home country.
Financing Options for Foreign Buyers
Can foreigners get a mortgage in Mexico? The answer is yes—but with higher interest rates and additional documentation. If your income is based abroad, you may need to work with a lender that specializes in international clients.
Cash buyers often have an easier time, especially in competitive markets. However, if you plan to finance, you’ll want a knowledgeable mortgage broker on your team to help navigate the process and run the numbers.
The Role of the Notario Público in Mexican Real Estate
In Mexico, a Notario Público plays a critical role in finalizing property transactions. Unlike a notary public in the U.S., a Mexican notario is a government-appointed attorney responsible for ensuring that all documents are legal, taxes are paid, and title is transferred properly. If you’re buying property in Mexico as a foreigner, the notario is your legal checkpoint.
Taxes and Fees: What to Know Before You Buy or Sell
Here’s a surprise that catches many foreign buyers off guard: if you sell your property later, you may owe significant taxes—potentially more than a local seller would. Mexico applies a hefty capital gains tax to non-residents, sometimes exceeding 30% of the sale price.
That’s why it’s critical to include a tax strategist on your buying team. With proper planning, there are legal ways to reduce your tax burden, especially if the property was used as a primary residence or rental.
Risks of Foreclosures and “Too-Good-To-Be-True” Deals
We’ve seen a lot of curiosity around foreclosed properties in Mexico. The reality? They’re rarely worth the hassle. Mexican foreclosure deals often come with legal entanglements, unclear ownership rights, and inaccessible interiors. Unless you’re an experienced investor with a legal team in place, steer clear. There are better—and safer—ways to get a deal in Mexican real estate.
How to Protect Yourself When Buying Property in Mexico
Given the looser regulatory environment compared to countries like the U.S. or Canada, doing your due diligence is even more important. Here’s a minimum list of professionals you’ll want on your team:
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A licensed real estate agent (like Angie)
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An experienced notario
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A local attorney, especially if inheritance or land claims are involved
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A tax advisor familiar with cross-border transactions
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A relocation consultant (that’s us!)
Buying property in Mexico as a foreigner can be smooth and secure—if you work with the right people.
Final Thoughts: Is Buying Mexican Real Estate Worth It?
Absolutely—if you do it right. Mexican real estate offers lifestyle benefits, rental income opportunities, and even residency pathways. But between the fideicomiso system, regional laws, and tax complexities, it’s not a DIY project.
If you’re exploring your options or need help securing your dream home, vacation property, or investment in Mexico, schedule a Relocation Consultation at entrepreneurexpat.com/consult. We’ll connect you with trusted real estate professionals like Angie and help you navigate everything from banking to buying.
Stay tuned—this is just the beginning of our Mexican real estate series. Subscribe on YouTube and hit the notification bell to catch the next episode.
Resources:
- Interested in buying Mexican Real Estate? Book a Relocation Consultation here.
- Check out the properties listed on our international LMS here.
- Need remote income so you can qualify for residencies and visas? Check out all of our business training courses here.