Yes, foreigners can safely and legally buy real estate in Mexico, ensuring the buyer is protected.

Foreigners can buy and own property in Mexico. When buying in the restricted zone (50 kilometers of the coast and 100 kilometers of international borders), Buyers must purchase via a Fideicomiso (Bank Trust) or by establishing a Mexican corporation.

A fideicomiso is a trust where the bank acts as a trustee, giving you complete control over the property. It is established for 50 years and can be renewed indefinitely, with an annual fee payable to the bank.

Yes, purchasing through a Mexican corporation is a viable option, especially for investors looking to buy multiple properties or dealing with commercial land. For most buyers, we recommend purchasing via Fideicomiso.

When buying real estate in Mexico, the process involves several key parties, each playing a crucial role in ensuring a smooth and legally compliant transaction. Understanding the function and importance of each participant can significantly enhance the buying experience, providing clarity and confidence every step of the way. Here’s a closer look at the roles of each party involved:

1. Real Estate Agent: A local real estate agent or broker is often the buyer’s first point of contact. They assist in finding properties that match the buyer’s criteria, provide information about the local real estate market, and help navigate the complexities of the Mexican real estate environment. Agents are familiar with the nuances of the local market, including pricing trends, desirable locations, and negotiation tactics.
2. Buyer’s Attorney: It’s highly recommended that buyers engage a reputable attorney to represent their interests throughout the purchasing process. An attorney will review all contracts and perform due diligence on the property, including verifying the title and ensuring no liens or encumbrances. They are pivotal in protecting the buyer’s investment and meeting all legal requirements. Guardian Closing Services is highly recommended for buyers looking for reputable legal representation. They are known for their expertise in real estate transactions, providing comprehensive legal services to ensure your property purchase is secure and compliant with all Mexican real estate laws.
3. Bank (when buying via Fideicomiso): Foreigners who purchase property in restricted zones—within 50 kilometers of the coast or 100 kilometers of international borders—must use a fideicomiso or bank trust. The bank acts as the trustee, holding the legal title to the property on behalf of the buyer. They ensure the trust complies with Mexican law and safeguard the buyer’s interests.
4. Notary Public: In Mexico, a notary public (notario público) is a licensed attorney appointed by the state government, playing an essential role in the real estate transaction. They are responsible for authenticating legal documents, calculating and ensuring payment of taxes, and officially registering the property transfer. Unlike in many countries, Mexican notaries have significant legal authority and are responsible for the legal correctness of the conveyance documents. They confirm the seller’s legal capacity to sell, the property’s legal status, and the absence of liens.
5. Escrow Service: Typically only used when buying a previously owned property, an escrow service can act as a neutral third party to securely hold funds during the transaction. This ensures that the buyer’s funds are only released when all conditions of the sale have been met, providing an additional layer of financial security.

Closing costs range between 5%-9% of the property’s value, including taxes, notary fees, and other government fees.

Property taxes in Mexico are remarkably low, approximately 0.1% of the property’s value annually. Early payment can also lead to discounts.

While Mexico does not offer a direct investment visa for real estate purchases, owning property can support your financial solvency proof for temporary or permanent residency visas.​