How to Buy Property in Mexico as a Foreigner

Are you a foreigner looking to buy property in Mexico? Here’s everything you need to know to make it happen.

With its stunning beaches, diverse wildlife, rich culture, and deep-rooted traditions, Mexico is one of the most attractive destinations for tourism and foreign investment. This has led to a steady increase in Foreign Direct Investment (FDI), particularly in the booming real estate sector. Opportunities for construction, purchase, sale, and investment continue to expand, especially in the Riviera Maya.

In this article, we’ll cover an essential topic to guide you through the process of acquiring property in Mexico as a foreigner.

Can Foreigners Buy Property in Mexico?

If you’re not a Mexican citizen, you cannot directly purchase property in certain restricted zones, which include areas within 50 km (31 miles) of the coastline and 100 km (62 miles) from international borders. However, there is a legal solution that allows foreign buyers to own real estate securely: a fideicomiso (bank trust).

A fideicomiso is a necessary legal arrangement that must be handled by a professional. Fortunately, most real estate developments in Mexico facilitate this process, and the cost is relatively low compared to the overall price of the property.

What Is a Fideicomiso and Why Is It Needed?

A fideicomiso is a legal trust agreement in which a property is held by a Mexican bank on behalf of a foreign buyer. The bank serves as the trustee, holding the title while granting full ownership rights to the buyer, including the ability to sell, lease, remodel, or bequeath the property to heirs.

This trust serves as a legal framework to ensure that foreigners can safely invest in real estate while complying with Mexican regulations. It also offers benefits beyond property ownership, such as asset protection and estate planning.

How Does a Fideicomiso Work?

• The foreign buyer selects a property.
• A Mexican bank establishes a fideicomiso, holding the title on behalf of the buyer.
• The buyer retains all rights to the property, just as if they held the title directly.
• The trust is renewable every 50 years and can be transferred or inherited.

This system was established by the Mexican government as a safeguard, ensuring that foreign real estate transactions are secure, transparent, and properly regulated. It also provides legal protection for buyers, as the bank ensures compliance with property laws throughout the process.

If you’re considering investing in Mexican real estate, working with an experienced real estate advisor can simplify the process, ensuring a smooth and legally sound transaction.

What Are the Benefits of a Fideicomiso?

• Assets held in a fideicomiso are protected from seizure and commercial risks.
• The trustor (fideicomitente) can designate multiple beneficiaries (fideicomisarios), either simultaneously or successively, based on legal provisions.
• It serves as a financial tool for obtaining credit and functions as a risk buffer by creating an independent asset structure.
• Beneficiaries can enforce guarantees more efficiently, leading to faster processes and higher asset recovery values.

Is It Difficult for Foreigners to Buy Property in Mexico?

Not at all. The large number of foreigners who own property along Mexico’s coasts is a testament to how straightforward the process is.

If you’re a foreign buyer, you must provide legal proof of your identity through official documentation from your home country.

Property Location Restrictions

Certain areas in Mexico are classified as “restricted zones”, where foreign ownership requires special arrangements. These include:

• A 100 km (62-mile) strip along the U.S.-Mexico border.
• A 50 km (31-mile) strip along the coastline, including the Sea of Cortez.

Why Is a Fideicomiso Important for Foreign Property Buyers?

If you want to purchase real estate in a restricted zone, there are two legal ways to do so:

1. Through a Mexican corporation (for non-residential properties).
2. Via a Mexican bank trust (fideicomiso) for residential properties.

A fideicomiso bancario allows a foreign buyer to appoint a Mexican bank as the legal titleholder while retaining full ownership rights. In this arrangement:

• The foreign buyer becomes both the trustor (fideicomitente) and the beneficiary (fideicomisario).
• The bank holds the legal title for the agreed-upon trust period, exclusively for the buyer’s benefit.
• The buyer retains full rights to use, lease, sell, or inherit the property.

This system ensures compliance with Mexican property laws while providing foreign investors with secure ownership rights.