There are plenty of houses for sale in Mexico, especially in tourist areas, as these are the most sought by foreigners. The real estate acquisition procedure 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.
Below, we invite you to discover how you can buy a property in Mexico.
Possibility to buy a house in Mexico as a foreigner
The good news is that you can acquire a Mexican property no matter your nationality. However, just like stated in the introduction, you will need to observe some rules in this sense. The most important refers to the restrictions that apply.
|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,
|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,
– San Miguel,
|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)||
|Property tax rates in Mexico||
– annual property tax (6 -10%),
– 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.|
Foreigners are permitted to own properties in Mexico, as long as they are not located in a restricted zone that covers the following:
- areas that cover regions that are 50 kilometers or less from the coast;
- areas that are located within 100 kilometers 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.
If you are interested in Cabo homes for sale, you can rely on us for dedicated legal services in Mexico. We can also assist if you are interested in the acquisition of a property as part of the process of immigration to Mexico.
The best way to buy a property in Mexico as a foreigner
First of all, you should know that there are two ways to acquire real estate if the desired place is not located in a restricted zone. These are:
- the direct way;
- the investment visa program.
Unlike other countries, the best way to buy a house in Mexico is the direct way. You do not even have to obtain a residence permit for Mexico for this purpose.
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 check the property out;
- have it inspected;
- if you decide to buy it, you can also contact our law firm in Mexico for support in drafting the paperwork;
- 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.
Particularities you should know when buying a property in Mexico
Before starting the real estate acquisition procedure, there are a few things you should know. These are:
- you will need to have a minimum deposit that will be set aside in an escrow account to secure the transaction;
- the minimum deposit is usually 10% of the value of the house for sale in Mexico;
- if you decide on a property in a restricted area, you will also need to obtain authorization from the Foreign Secretary’s Office;
- after buying the property, you need to register it with the Land Register.
Apart from these, you also need to consider the fees and taxes collected by the authorities when you buy a property in Mexico.
We remind you that if you are interested in Cabo homes for sale, our law firm in Mexico can help you.
Real estate costs 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 2% transfer tax, which is also 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. Our lawyers also remain at your service if you want to apply for citizenship in Mexico.