Buying Property in Mexico as a Foreigner: What You Need to Know Before You Invest

Looking to invest in Mexican real estate or purchase a vacation home, rental property, or retirement retreat? You’re in good company. Every year, thousands of Americans, Canadians, and Europeans explore buying property in Mexico—not just for the lifestyle, but for the attractive investment potential.

At Expat Property Search, we specialize in helping foreign buyers navigate the ins and outs of buying property in Mexico. From beachfront condos to colonial homes inland, here’s what you need to know to make your purchase legally secure and financially sound.

Can Foreigners Own Property in Mexico?

Yes, foreigners can legally own property in Mexico—even in popular coastal areas like Tulum, Playa del Carmen, Puerto Vallarta, and Los Cabos. However, there are specific legal structures involved, especially when buying in Mexico’s “Restricted Zone” (within 50 km of the coastline or 100 km of international borders).

The most common structure used is called a fideicomiso, or bank trust.

What Is a Fideicomiso?

A fideicomiso is a trust agreement that allows foreigners to enjoy full rights of property ownership in restricted zones. A Mexican bank holds the title, but you retain all the rights to use, lease, improve, sell, or inherit the property. These trusts are valid for 50 years and renewable thereafter.

When browsing properties on our site in coastal destinations, you’ll see notes on whether a fideicomiso is required—and we connect you with trusted professionals to help set it up.

Where Can You Buy Without a Trust?

If you’re considering inland areas like Guadalajara, San Miguel de Allende, or Mexico City, you may not need a fideicomiso at all. In these cases, foreigners can often hold direct title—especially if you’ve obtained Mexican residency.

Each region can have its own legal nuances, so always confirm with a licensed agent or notario.

Can You Rent Out Your Property?

Absolutely. One of the major benefits of buying property in Mexico is that there are no restrictions on rental income. Whether you plan to list on Airbnb or sign long-term leases, foreign owners are allowed to rent out their properties legally—just be sure to report income in both Mexico and your home country.

What About Financing Options?

While cash is king in the Mexican real estate market, foreign buyers can still access financing. Some banks offer cross-border loans, and private lenders may work with expats—though rates and requirements vary.

If you’re exploring mortgage options, we can connect you with vetted brokers who specialize in international clients.

The Notario Público: Your Legal Gatekeeper

In Mexican real estate, a Notario Público is much more than a notary. They are government-appointed attorneys who oversee the entire closing process, ensure legal compliance, verify ownership, and register the property.

No transaction is valid without their involvement, and we ensure that every property listed on our MLS is ready for a smooth closing with a qualified notario.

Don’t Forget Taxes and Fees

Before you buy or sell, be aware of the capital gains taxes that may apply—especially for non-residents. Without the right documentation, you could owe up to 35% upon resale. Planning ahead with a tax advisor who understands both Mexican and foreign tax laws is essential.

Beware of “Too Good to Be True” Deals

If you’ve come across foreclosed properties or unusually cheap land listings, proceed with caution. These deals often involve unclear title history, legal disputes, or restricted access. For most foreign buyers, it’s safer and more efficient to purchase through licensed agents and verified MLS platforms like ours.

Your Professional Team for Buying Property in Mexico

To protect your investment and ensure a smooth buying experience, make sure your team includes:

• ✅ A licensed Mexican real estate agent
• ✅ A Notario Público
• ✅ A real estate attorney familiar with local and expat laws
• ✅ A tax strategist for cross-border planning
• ✅ A relocation consultant (we can help!)

Explore Featured Properties in Mexico

Ready to start your search? Browse our curated listings of homes, condos, and investment properties across Mexico. Each listing includes detailed descriptions, legal status, and notes on whether a fideicomiso or residency is required.

Final Thoughts: Is Buying Property in Mexico a Good Investment?

Yes—if you do it with the right guidance. Mexican real estate offers lifestyle benefits, income opportunities, and even a path to residency. But it’s not a “do-it-yourself” process.

Our team is here to make it simple and secure. Whether you’re buying your first vacation home or diversifying your portfolio, we’ll connect you with local experts who speak your language and understand your goals.

Need help with real estate, tax strategy and immigration? We have a team of experts to help. Book a relocation consultation here.