Buy a Property in Mexico

Buying a property in Mexico is not complicated, not even for foreign citizens. However, there are steps to complete and certain particularities that will be presented by our lawyers in Mexico, who can also help during the acquisition procedure.

Quick Facts
Specific legislation applicable (YES/NO)	No, the Civil Code of each Mexican state applies.
Possibility to acquire Mexican properties by foreigners (YES/NO)	Yes, with certain restrictions
Types of properties that can be purchased in Mexico	– town houses, – beach/vacation houses, – apartments, – villas.
Real estate due diligence required (YES/NO)	No, but it is recommended to have the property checked before acquisition.
Documents to draft for property acquisition	– the sale-purchase contract, – identification papers of the parties, – a Mexican bank account number, – Mexican visa for the buyer (if applicable), – an appraisal of the property.
Financing options availability (YES/NO)	Yes, it is possible to acquire properties in Mexico through a mortgage.
Special property acquisition programs for foreign citizens (YES/NO)	Yes, through the investment visa
Timeframe to acquire a property in Mexico (approx.)	A few weeks
Taxes to consider upon a property purchase	– property acquisition tax, – legal fees, – real estate agent fees (if applicable).
Land Registry registration requirement (YES/NO)	Yes
Best cities to buy properties in Mexico	– Mexico City, – Monterrey, – San Miguel, – Cancun.
Residency requirements for foreign citizens buying real estate	No, one does not need to be a resident to buy a property in Mexico.
Possibility to appoint a Mexican representative during the transaction (YES/NO)	Yes
Property tax rates in Mexico	– annual property tax (predial), usually about 0.1%–0.3% of the cadastral value, – income tax for rental.
Support in buying a property in Mexico (YES/NO)	Yes, we can assist people who want to buy real estate in Mexico.

Can I buy real estate in Mexico if I am a foreigner? Are there any restrictions that apply?

Yes, you can buy a property in Mexico, even if you are a foreign citizen, as long as it is not located in a restricted zone that covers the following:

areas that cover regions that are 50 kilometres or less from the coast;
areas that are located within 100 kilometres of a border.

Foreigners are not allowed to directly own land in these places, but they are still able to own property through a trust agreement with a bank in Mexico. The deed is held by this bank while the foreigner can use, rent, or sell the property.

You can also complete the purchase by opening a company in Mexico.

What are the steps to buy a house in Mexico?

Once you have taken a look at the houses for sale in Mexico and decided on the type of property you want, you will need to:

get in touch with a real estate agent to see the property;
have it inspected;
if you decide to buy it, you can also contact our law firm in Mexico for support in drafting the paperwork;
if you decide on a property in a restricted area, you will also need to obtain authorization from the Foreign Secretary’s Office;
meet with the seller and sign the sale-purchase agreement.

If you decide on a house that is located in a restricted area, our Mexican lawyers will help you create the trust deed.

Here is also our infographic on how to buy a Mexican property:

What are the documents required to buy a property in Mexico?

Here are the documents the seller needs to draft:

identity papers;
an appraisal of the property to be sold;
the title deed or ownership certificate;
copy of the purchase contract (in case the property is resold).

The buyer must also prepare a set of documents, among which we mention the following:

valid passport or ID, in the case of those who have Mexican citizenship;
valid Mexican residence permit, in the case of people who already live here;
a valid visa in the case of foreign citizens who come here to conclude the transaction;
proof of having a local bank account (our Mexican lawyers can help you set up a bank account before arrival);
a Mexican tax identification code;
bank deposit certificate indicating the buyer has the advance payment or the entire amount to purchase the property.

What are the best cities to buy houses in Mexico?

Here are some options:

Mexico City;
Merida;
Guadalajara;
Tulum.

Can I obtain a residence permit if I acquire a property in Mexico?

Yes, Mexico has a residency by investment scheme, and one of the ways to access it is real estate acquisition. However, in this case, you must note that the property you buy must have a specific value.

We recommend consulting our law office in Mexico City to find the best approach.

Do I need to be present in Mexico to purchase a property?

No. Our Mexican lawyers can represent you during the procedure through a power of attorney.

Is real estate due diligence required when buying a property in Mexico?

It is not required. However, due diligence checks are quite common among foreign citizens who want to know if they will enter the restricted zones and if the building is free of encumbrances.

Here is also our video on this subject:

Are advance payments common when buying a house or apartment in Mexico?

Yes, a 5% to 10% advance payment is quite common. The amount will be deducted from the final price.

What is the currency I can make the purchase in?

You can make the transaction in the local currency, the Mexican peso; however, as a foreigner, you can also pay in US dollars.

How long does it take to complete the purchase procedure of a Mexican property?

The entire procedure can take 2 to 3 months to complete.

Do I need to complete any other process after I buy a property in Mexico?

Yes, the property must be registered in your name with the Mexican Land Register.

What are the costs of buying a house in Mexico?

There are several costs you need to consider when buying a house in Mexico. These are:

an average of 1.5% of the value of the property for the notary fee;
a real estate acquisition tax (ISAI) of about 2% to 5%, depending on the state and municipality, computed on the value of the property;
a registration fee of 0.5% to 1% depending on the Mexican state the real estate is in.

If you want to buy a property in Mexico and need assistance, contact us.