Photo curated by SpotOn Photographers.

Comprehensive Guide To Buying Real Estate in Mexico

Mexico is a popular destination for Americans and foreigners seeking a warm climate, beautiful beaches, and a laid-back lifestyle.  However, as a non-citizen, buying property in Mexico can be complex, with various regulations and legal requirements to consider. This article will explore whether foreigners or Americans can buy property in Mexico. We’ll examine the steps in purchasing real estate in Mexico, including the legal process, fees, and taxes.  We’ll also address some common questions and concerns that non-citizens may have when considering buying real estate in Mexico.

Can Americans or Foreigners Buy Property in Mexico?

The short answer is yes, Americans and foreigners can buy property in Mexico. However, there are some restrictions and requirements that you should be aware of.

The Mexican Constitution and Foreign Ownership of Property

The Mexican Constitution stipulates that non-citizens cannot own property within 100 kilometers (about 62 miles) of any Mexican border or 50 kilometers (about 31 miles) of any Mexican coastline. This is known as the “restricted zone.”  However, non-citizens can own property in the restricted zone through a Mexican bank trust or “fideicomiso.” A fideicomiso is a legal instrument that allows non-citizens to own property in Mexico without violating the Constitution.  The fideicomiso is a trust agreement between the non-citizen and a Mexican bank, with the non-citizen as the trust beneficiary.  The bank holds the title to the property, but the beneficiary has all the ownership rights, including the right to sell, lease, or transfer the property.

Requirements for Buying Property in Mexico as a Non-Citizen

To buy property in Mexico as a non-citizen, you must meet certain requirements and follow specific legal procedures. 

Here are the steps involved:

Obtain a Mexican taxpayer identification number (RFC). This is a unique number assigned to you by the Mexican tax authority, and it’s required for any financial transaction in Mexico. Sign a purchase agreement with the seller. The purchase agreement should include a detailed description of the property, the purchase price, and any conditions or contingencies. Open a fideicomiso with a Mexican bank. The bank will act as the trustee and hold the title to the property. Obtain the necessary permits and approvals. Depending on the location and type of property, you may need to obtain permits or licenses from various government agencies, such as the local land registry or the Ministry of Environment and Natural Resources. Close the sale. Once all the requirements and procedures have been completed, you must transfer the funds to the seller and sign the final closing documents.

Fees and Taxes

Buying property in Mexico as a non-citizen can be expensive, with various fees and taxes. Here are some of the costs involved:

Real estate agent fees

Typically 5-10% of the purchase price.

Closing Costs

These can include appraisal fees, notary fees, and transfer taxes ranging from 3-5% of the purchase price.

Property Taxes

These vary depending on the location and value of the property but are typically lower than in the United States.

Annual trust fees

These fees are charged by the bank that holds the fideism.


If you’re looking to invest in real estate, Mexico is looking vey atrative.  Our favorite area in the Riviera Maya. We think with the new air port and the Mayan Train coming to that area, Tulum real estate is set for some serioous apprieciation over the next several years. Whether you’re considering a vacation home or rental property, buying real estate in Mexico is a great investment that will surely bring you joy now and for generations to come.