Guide to Buying Property in Mexico: A Comprehensive Overview for Foreigners (2025)

Buying property in Mexico can be an attractive investment opportunity, offering affordable prices, a vibrant culture, and stunning locations including the Riviera Maya coast. As of 2025, foreigners can own property in Mexico, but there are specific rules and restrictions, particularly in certain geographic areas. This guide covers the legal framework, step-by-step process, costs, and tips to help you navigate the purchase successfully. Whether you're eyeing a condo or villa within Tulum Country Club, understanding these details is crucial.

Note: Always consult with qualified professionals, such as a Mexican real estate attorney and notary, for personalized advice. We are happy to recommend some we have worked with in the past.

Can Foreigners Own Property in Mexico?

Yes, foreigners can own property in Mexico, but ownership rules depend on the property's location. You do not need to be a resident or hold a visa to purchase property, though residency can simplify some processes like setting up utilities or handling taxes. However, in "restricted zones", areas within 50 kilometers (31 miles) of the coastline or 100 kilometers (62 miles) of international borders, foreigners cannot hold direct title to residential property due to constitutional restrictions aimed at protecting national security. These zones include properties within Tulum Country Club.

Ownership Options in Restricted Zones

To buy in restricted zones:

• Fideicomiso (Bank Trust): The most common method for residential purchases. A Mexican bank holds the legal title, but you (the foreigner) are the beneficiary with full rights to use, rent, remodel, sell, or inherit the property. The trust lasts 50 years and can be renewed indefinitely. You need a permit from the Secretaría de Relaciones Exteriores (SRE) to set it up.

• Mexican Corporation: Suitable for commercial or investment properties. You form a Mexican company that owns the property, and you own the company. This isn't allowed for purely residential use in restricted zones.

Step-by-Step Process for Buying Property in Mexico

The buying process typically takes 45-90 days. Here's a breakdown:

1. Research and Find a Property: Use online portals, local agents, or visit in person. Focus on areas like the Riviera Maya for coastal vibes or inland cities for urban living. Consider factors like rental potential (higher yields in tourist spots).

2. Make an Offer and Sign a Preliminary Agreement: Negotiate terms with the seller via your agent. Sign a "Contrato de Compraventa" (purchase agreement) and pay a deposit (usually 10-20% earnest money, held in escrow).

3. Conduct Due Diligence: Hire a Mexican attorney to perform a title search, check for liens, debts, zoning compliance, and any disputes. Verify the seller's ownership and ensure no unpaid taxes. This step is critical to avoid fraud.

4. Obtain Necessary Permits: For restricted zones, apply for an SRE permit. If using a fideicomiso, select a bank and set up the trust.

5. Arrange Financing (If Needed): Foreigners can get mortgages from Mexican banks or U.S. lenders, with down payments of 20-30% and interest rates around 10%.

6. Engage a Notario Público: A government appointed notary (Notario) verifies all documents, calculates taxes, prepares the deed (Escritura Pública), and oversees the closing. This is mandatory for legal validity.

7. Close the Deal: Sign the Escritura at the notary's office, pay the balance, and transfer funds (use escrow for security). The notary registers the property with the Public Registry of Property.

8. Post-Closing: Obtain your title copy, set up utilities, and pay ongoing taxes. If renting, check HOA rules and local zoning for short-term rentals like Airbnb.

Costs and Fees Involved

Buying property in Mexico is relatively affordable, but plan for these expenses:

Closing Costs: Approximately 10% of the purchase price, including:

• Property Acquisition Tax (ISAI): 2-5% (varies by state).

• Notary Fees: 0.5-1.5%.

• Legal Fees: 1-1.5%.

• Registration and Appraisal: 0.5-1%.

• Fideicomiso Setup (if applicable): $450-$2,000 USD, plus SRE permit (~$1,100 USD).

Ongoing Costs:

• Annual Property Tax (Predial): 0.1-0.3% of assessed value (often low about $100-$500 USD/year for a mid-range home).

• Fideicomiso Annual Fees: $400-$700 USD.

• HOA or Maintenance Fees: Varies for condos or gated communities.

• Capital Gains Tax on Sale: Up to 35% for non-residents, with exemptions possible.

Total roundtrip transaction costs (buying and selling) range from 6.5-13.5%.

Tips and Warnings for Foreign Buyers

• Hire Professionals: Work with experienced agents, attorneys, and notaries familiar with foreign transactions. Check references and avoid deals that seem too good to be true.

• Avoid Risks: Watch for title issues, scams, or natural disaster-prone areas. Use escrow and title insurance.

• Inheritance and Selling: Name beneficiaries in your fideicomiso to simplify inheritance without Mexican probate. For selling, ensure all taxes are paid.

• Pros and Cons: Pros include low costs, high rental yields (up to 10–15% in tourist areas), and lifestyle benefits. Cons involve legal complexities, potential delays, and market fluctuations.

• Documents Needed: Passport, proof of income, purchase agreement (in Spanish), and appraisal.

By following this guide and seeking expert help, you can confidently invest in Mexican real estate. 

At Tulum Country Club Living, we are your local experts for buying and selling within the Riviera Maya. We specialize in properties exclusive to Tulum Country Club and have worked with over 300 clients from all over the world. You can trust us to walk you through this process from finding a property to moving in, we’ve got you covered. 

Tulum Country Club Living. Own the Lifestyle.