The Ultimate Guide to Buying Property in Mexico as a Foreigner

If you’re considering buying property in Mexico, you’re far from alone. Every single day, around 100 properties are sold to foreign investors—mostly Americans (about 60%), followed by Canadians, Europeans, Brazilians, and others. With its low cost of living, growing infrastructure, and diverse lifestyle offerings, Mexican real estate continues to attract global attention.

At Expat Property Search, we specialize in helping international buyers and expats find the right property, understand legal requirements, and make smart investment decisions. Whether you want a vacation home, a rental asset, or a forever home to retire in—this is your complete guide.

🌍 Where Foreigners Are Buying Property in Mexico

Different destinations offer different benefits depending on your goals:

1. Riviera Maya (Quintana Roo)

Includes Tulum, Playa del Carmen, Bacalar, and Cancún. Offers strong short-term rental potential and stunning beachfront living.

2. Merida & Yucatán

Known as one of the safest regions in Latin America. Great for long-term appreciation and eco-conscious development.

3. Guadalajara & Lake Chapala

A cultural hub with mild weather and affordable living. Lake Chapala is a top retirement spot with a growing expat community.

4. San Miguel de Allende

UNESCO-listed city with colonial charm, walkability, and strong long-term rental value.

5. Oaxaca

An emerging hotspot with Pacific beaches, a booming food scene, and rising values.

6. Baja California Sur

From Los Cabos to La Paz, this region is ideal for high-end homes and rental returns.

7. Riviera Nayarit (Sayulita, Bucerías)

Perfect for digital nomads, surfers, and those looking for laid-back community living.

🏗️ Should You Buy Land in Mexico or a Move-In Ready Property?

🔨 Buying Land in Mexico

Pros:

• Build exactly what you want
• Potential for strong appreciation
• Lower upfront costs

Cons:

• Longer timelines
• Legal complexity (especially ejido land)
• Infrastructure delays (water, electricity, permits)

There are two primary approaches:

• Raw Land: Requires full development and permits.
• Community Developments: Infrastructure like roads and utilities are pre-installed.

You’ll need to consider whether the land is ejido, communal, or privately titled. Ejido land is not privately owned and must be converted—this can take 4–5 years.

🏡 Buying Move-In Ready Homes

Pros:

• Immediate use or rental income
• Full legal documentation and utilities
• Easier for first-time buyers

Cons:

• Higher price point
• Less design flexibility

These properties often come with access to fideicomisos, title insurance, and financing options, making them ideal for expats new to Mexico.

🔑 Can Foreigners Legally Own Property in Mexico?

Yes—but it depends on location:

• Interior Zones: Foreigners can own property outright (fee simple).
• Restricted Zones (within 50 km of the coast or 100 km from a border): Must use a fideicomiso (a renewable 50-year bank trust) or a Mexican corporation (for commercial use).

Navigating these structures properly is key—always work with a legal advisor and real estate professional.

📈 What Makes Mexican Real Estate a Good Investment?

Mexico is investing heavily in:

• The Tren Maya Project
• Tourism corridors
• New airports
• Highways and urban infrastructure

These improvements are pushing prices up and opening new investment corridors.

Investment Types:

• Cash Flow: Properties in tourist or university areas (Tulum, Chapala)
• Appreciation: Growth markets like Merida outskirts or Campeche
• Fractional Ownership: Lower entry point for luxury buyers

🚨 Red Flags: Why You MUST See Property in Person

Unlike the U.S. or Canada, Mexican listings are not centralized. Some listings may be outdated or fraudulent. That’s why we only work with licensed agents, attorneys and notaries who do title checks, pricing analysis, and accompany you in person.

📍 Up-and-Coming Markets for Early-Mover Advantage

Look beyond the top cities for future appreciation:

• Progreso, Yucatán – A beach town near Merida
• Campeche – Historic, colorful, and undervalued
• Morelia – A colonial gem with lower buy-ins
• Select areas in Guerrero – Natural beauty and room to grow

📋 Legal Checklist: Taxes, Closing Costs & Due Diligence

When buying property in Mexico, here’s what to expect:

Key Costs:

• Closing Costs: 5–7% (notary fees, taxes, registration)
• Taxes when you sell the property as a foreigner: Up to 35% for non-residents unless exempt

Key Professionals:

• ✅ Licensed real estate agent
• ✅ Notario público (government-appointed)
• ✅ Real estate attorney
• ✅ Cross-border tax advisor
• ✅ Relocation consultant

🌟 Final Thoughts: Is Buying in Mexico a Smart Move?

Yes—if done correctly.
With strong rental yields, affordable lifestyle options, and growing expat communities, Mexican real estate can be one of the best investments of the decade.

Whether you want to build your dream home, retire in peace, or grow your passive income portfolio—now is the time to act.

Need help with real estate, immigration and tax strategy? Our team of experts can help you. Book a Relocation Consultation here.