Last updated April 1, 2026

Can Foreigners Buy Property in Mexico?

Yes. US, Canadian, European, and other foreign nationals legally purchase and own real estate throughout Mexico every day. The process is well-established and protected under Mexican federal law. Mexico Life Realty has guided hundreds of foreign buyers through this process since 2007.

The Restricted Zone and the Fideicomiso

Mexico’s Constitution includes a “restricted zone” — land within 50 kilometers of the coastline and 100 kilometers of international borders. Puerto Vallarta, Nuevo Vallarta, Bucerias, Sayulita, and the entire Banderas Bay region fall within this zone.

Foreign buyers in the restricted zone acquire property through a Fideicomiso — a bank trust. Here’s how it works:

• A Mexican bank holds the legal title to the property in trust on your behalf
• You are the beneficiary with full ownership rights — you can sell, rent, renovate, remodel, or pass the property to your heirs
• The trust is valid for 50 years and is renewable indefinitely
• The bank charges an annual trust fee, typically $500–$800 USD per year
• You maintain complete control over the property at all times

The Fideicomiso is not a lease. It is not shared ownership. It grants you the same practical rights as owning property outright in the United States or Canada.

Escritura: Direct Ownership

In some cases, foreigners can own property via Escritura (direct deed) through a Mexican corporation. This is more common for commercial properties or investment portfolios. Your agent and notary will advise which structure is best for your situation.

The Buying Process Step by Step

1. Find your property — Work with a licensed Mexico Life Realty agent who knows the local developments, HOA rules, and market conditions
2. Make an offer — Your agent submits a written offer. Negotiations are common and expected
3. Sign a purchase agreement — Once both parties agree on price and terms, a formal contract is executed. A deposit (typically 5–10% of the purchase price) is placed in escrow
4. Apply for the Fideicomiso — Your agent submits the trust application to a Mexican bank. The bank obtains a foreign affairs permit, which takes approximately 4–6 weeks
5. Due diligence — The Notario Publico (a government-appointed attorney) verifies clear title, confirms no liens or encumbrances, and reviews all documentation
6. Closing — The Notario Publico executes the deed transfer. You sign the trust documents, pay closing costs, and receive the keys. The entire process typically takes 45–60 days from accepted offer to closing

Closing Costs

Expect closing costs of approximately 4% to 6% of the purchase price. These typically include:

• Notario Publico fee — The notary handles all legal filings, title verification, and government registrations
• Acquisition tax (Impuesto Sobre Adquisición de Inmuebles) — A state transfer tax, typically 2–3%
• Fideicomiso setup fee — The bank’s one-time fee to establish the trust
• Appraisal — Required by the bank and notary to confirm property value
• Certificate of No Liens — Confirms the property is free of debts

Your Mexico Life Realty agent will provide a detailed cost estimate before you commit to any purchase.

The Role of the Notario Publico

In Mexico, the Notario Publico is a government-appointed legal professional — not the same as a notary public in the US or Canada. The Notario:

• Verifies clear title and ownership history
• Ensures all taxes and fees are paid
• Registers the transaction with the Public Registry of Property
• Acts as a neutral third party — they represent the transaction, not either party

Frequently Asked Questions

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