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.
Table of Contents
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.
| 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 (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.
Documents required to buy a property in Mexico
Both the seller and buyer need to prepare their own specific set of documents when selling, respectively acquiring a Mexican property. Another important aspect to consider is also the relation between the two parties.
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.
Apart from these, there is also the most important document: the sale-purchase agreement which can be drafted by any of the parties.
In Mexico, properties can be bought from natural persons or real estate developers. It is also possible for Mexican companies with full foreign ownership to acquire real estate in restricted areas.
Our law office in Mexico City is also at the service of companies seeking to buy real estate in this country.
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.
The role of the lawyer in Mexico
Compared to other countries, buying a house in Mexico is not completed by a public notary. In this case, the parties’ lawyers will act as representatives of the seller and buyer during the transaction. They will verify the documents and complete all due diligence matters.
So, if you need representation in buying a home in Mexico, you can address our lawyers who can also help you draft the sale-purchase contract.
What are the best cities to buy houses in Mexico?
Without a doubt, Mexico is associated with the sunny beaches of Cancun, Puerto Vallarta, and Cabo. These are great places to own properties, however, as a foreigner, it is important to get acquainted with the restrictions of real estate ownership too close to coastal areas. This is why, our Mexican lawyers present you with some interesting alternatives, such as:
- Mexico City;
- Merida;
- Guadalajara;
- Tulum.
Also, the investor visa is a great alternative for those who want to immigrate to Mexico and want to acquire properties through this special program. This is a great alternative for those who open companies to get access to buying properties in restricted areas.
Here is also our video on this subject:
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.