Frequently Asked Questions

Can foreigners legally buy property in Mexico?

Yes, foreigners can legally buy property in Mexico. However, there are certain restrictions if the property is within 50 km of the coast or 100 km of an international border. In these cases, purchases must be made through a bank trust, or "fideicomiso".

Do I need a special structure like a trust or corporation to buy property in Mexico?

If the property is located in the "restricted zone" as mentioned above, you will need to establish a bank trust or "fideicomiso". If the property is outside the restricted zone, you can buy it directly.

Do I own the property outright as a foreigner in Mexico?

Yes, as a foreigner, you can own property outright in Mexico outside the restricted zone. If the property is within the restricted zone, the property is held in a trust with you as the beneficiary, meaning you still effectively own the property and can sell, rent, or pass it on to your heirs.

What are the closing costs and taxes when buying property in Mexico?

Closing costs typically range from 5% to 7% of the property's value. These costs include notary fees, registry fees, and acquisition taxes. The acquisition tax is typically 2% of the assessed value of the property.

Do I need to hire a lawyer when buying property in Mexico?

While it's not legally required, it is strongly recommended to hire a lawyer when buying property in Mexico. They can help ensure the process goes smoothly and verify that all legal requirements are met.

Can I get a mortgage in Mexico as a foreigner?

Yes, it is possible for foreigners to get a mortgage in Mexico, though it can be more challenging than for Mexican residents. Interest rates can be higher, and a substantial down payment is usually required.

Are there annual property taxes in Mexico?

Yes, there are annual property taxes in Mexico, called "predial". However, they are generally much lower than property taxes in countries like the U.S.

Can I rent out my property in Mexico for income?

Yes, you can rent out your property in Mexico. Many foreigners buy property in Mexico specifically as an investment, renting it out for income when they are not using it themselves.

Is the buying process safe and transparent in Mexico?

Yes, the property buying process in Mexico is generally safe and transparent, especially if you work with reputable real estate agents and lawyers. However, as with any major purchase, it's important to do your own due diligence.

Do I get residency or visa benefits by buying property in Mexico?

Buying property in Mexico does not automatically grant you residency or any special visa benefits. However, it can make it easier to qualify for certain types of visas, such as the temporary resident visa.