FAQs on Buying a Home, Condos, or Land in Mexico

faqs about buying a home or real estate in Mexico
Faqs about buying a home or real estate in Mexico.

Tulum Real Estate Blog » Moving to Mexico

Can Foreigners Buy A House in Mexico?

Yes! Buying a home in Tulum or any part of Mexico and be down with an experienced guide,

Real estate, homes, or condos in Mexico can be a wise investment.

The Mexican government allows foreigners to own property in their country.

It is perfectly legal if outside the restricted zones-50 kilometers from the shoreline and 100 km from international borders.

In these areas, foreigners can hold direct deeds with the same rights as Mexican nationals.

But inside these borders, it’s different because there are restrictions on how much land you may own through fideicomisos (bank trust agreements).

Depending on what type of business or residential complex you plan to buy

If it’s a commercial real estate property, then only 1/4 acre would be allowed per person.

It’s Best to Hold Property Title

The Mexican Constitution of 1917 clarified that no foreigner can own property in Mexico’s “restricted zone.”

However, the government saw economic wisdom by allowing foreign investment and establishing trusts for residential real estate transactions.

Since 1973 most foreigners who have bought homes in Mexico have utilized a fideicomiso (trust) which grants them title to their houses while giving up very little control or ownership to a bank.

As the property owner, you are entrusted with the power to make investments, such as controlling what happens with all aspects of landscaping, home design, and redesign.

Frequently Asked Questions About Buying Real Estate in Mexico

Is it safe to buy real estate in Mexico?

Yes, but it is crucial to use a Mexican real estate attorney to ensure you receive the title on the property. Buying real estate in Mexico differs from the process in the United States, Canada, or Europe.

The attorney performs a complete title search, including the chain of ownership, to ensure this seller has the right to sell and that no others are waiting to take possession of the property.

This search will also reveal any taxes owed or liens on the property.

Can an American or Canadian own property in Mexico?

It is perfectly legal for an American to own property in Mexico.

Beyond the tedious process of setting up a bank trust (fideicomiso), buying property in Mexico as an American or Canadian is pretty straightforward.

Can foreigners own beachfront property in Mexico?


Foreigners interested in properties within 50 km of the coast or 100 km from a border will have to purchase the beach property through a trust with a Mexican bank known as a fideicomiso.

It is a reasonably straightforward process and nothing to be scared of.

What is a fideicomiso?

A fideicomiso is a trust that allows foreigners to buy property in Mexico with all the rights of a Mexican citizen.

This is a safe, legal, and prevalent vehicle for foreign real estate ownership in Mexico.

Sell it, rent it, build on it, live on it, or pass it down to your heirs… the choice is yours!

Is the Fideicomiso Just a Lease?

The fideicomiso trust is not a lease; although it is held in 50-year increments, the faith is renewable by you at any time. That means your property is not considered part of the bank’s assets.

How long does a fideicomiso last?

It lasts for 50 years, and after that, it is renewable by the owner or their heirs.

This means that ownership does not expire as long as it is renewed.

How can I buy in a restricted zone without a Fideicomiso?

If you are a non-resident of Mexico, you may have to set up a Mexican corporation and buy real estate in a restricted zone through that corporation.

Another option is becoming a Mexican Citizen; you may purchase some property near the beach without a fideicomiso.

The process of “Naturalization” or “Citizenship” is an option for foreigners who demonstrate legal residence in Mexico for five consecutive years minimum before the application date.

How much does a fideicomiso cost?

Fideicomisos do add some time and cost to the buying process.

The setup costs range from $500 to USD 1,000, and maintenance fees cost around $500 to $ 700 per year.

Should you hire a lawyer to help with the contract?

Your sales contract will be in Spanish, so many buyers like to take the contract to a lawyer (referred to as notaries in Mexico) to review the agreement and give third-party feedback.

If you want to purchase in the Riviera Nayarit, we can refer you to a notary.

What Function does a Notario Publico (Real Estate Notary) Serve?

The Notario Publico is a government-appointed real estate lawyer responsible for registering property deeds with the Public Registry Office.

Although the Notario is a lawyer, they do not act as your lawyer for you; they represent the buyer, seller, and the state.

Are there mortgages for foreigners in Mexico?

Yes, but it will require a lot of paperwork, months of processing, and high-interest rates.

99% of sales are cash sales due to the costs of mortgages.

Can the Mexican government seize your property?

No. If your property was purchased legally and you are not doing anything illegal on the property, the Mexican government has no legal right to take the property.

For example, if the land is required to build roads or railways.

This same process exists in most countries, including the US and Canada.

What kind of government does Mexico have?

Mexico has a federal system of government, with a constitution that establishes the division of powers between the federal government and the individual states.

Therefore, real estate law in Mexico is governed by federal law, but state and local laws can apply.

The federal law regulating real estate in Mexico is the Federal Civil Code, which sets out the general principles that apply to the acquisition, ownership, and transfer of real property.

In addition to the Federal Civil Code, specific laws apply to different types of real estate transactions, such as the Law on Urban Leases, the Law on Rural Leases, and the Law on the

Protection of Private Property – For Example, Real Estate

Mexico also has a system of land registration that the National Property Registry administers.

This system is designed to provide a public record of ownership and other interests in real property and to facilitate the transfer of ownership from one party to another.

Final Thoughts

Suppose you are considering purchasing real estate in Mexico. In that case, ensuring that the property or real estate you want to buy is properly registered and that all necessary documents are in order is essential.

Please get in touch with us if you have any questions about buying real estate in Tulum, Playa del Carmen, Cancun, or the Riviera Maya.

If you are looking to buy or sell real estate please contact us today.