Frequently Asked Questions
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".
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.
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.
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.
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.
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.
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.
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.
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.
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.
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