Yes — but with a few legal nuances. Mexico welcomes foreign buyers, yet there are special mechanisms in place for properties located in what’s called the Restricted Zone.
Understanding the Restricted Zone
Foreigners cannot hold direct title to land within 50 km (31 miles) of the coastline or 100 km (62 miles) of international borders. However, ownership is fully legal through a fideicomiso — a property trust arrangement.
Under this system:
A Mexican bank acts as trustee (fiduciario).
The buyer is the beneficiary, retaining all rights to occupy, rent, sell, or bequeath the property.
The fideicomiso is renewable every 50 years and can be transferred or sold at any time.
For properties outside restricted zones (e.g., in Mexico City or inland), foreigners may hold direct title just like a local citizen.
Property Taxes & Fees
Property tax (predial) is low compared to global standards — typically 0.1%–0.3% annually of assessed value.
Closing costs range from 5%–7% of the property price, covering notary, registration, and legal fees.
Financing Options
While most foreign buyers pay in cash, developer financing has grown popular in resort areas, often offering 3- to 5-year payment plans with modest interest rates.
Summary
Buying property in Mexico is straightforward and secure, provided you use a qualified notario público and registered real estate agent. The fideicomiso structure has been standard for decades and provides full legal control to foreign investors.
Add comment
Comments