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Frequently Asked Questions
Everything You Need to Know About Buying Property in Mexico
Can foreigners buy property in Mexico?
What is a fideicomiso?
A fideicomiso is a real estate trust established through a Mexican bank, allowing foreigners to purchase property within the restricted zone (50 km from the coast or 100 km from the border).
The bank holds the title on your behalf, but you are the sole beneficiary and retain all ownership rights. It functions much like a living trust and is fully recognized under Mexican law.
How much does a fideicomiso cost?
The setup cost for a fideicomiso ranges from $1,500 to $2,500 USD, depending on the bank and location.
Annual maintenance fees are typically between $500 and $800 USD.
This includes trust management and legal compliance.
Are there property taxes in Mexico?
Yes, but they’re very low compared to the U.S. and Canada.
Property taxes (predial) usually range between 0.05% and 0.2% of the assessed value per year—often under $300 USD annually, even for oceanfront properties.
What are the closing costs?
Closing costs in Mexico typically add up to 5% to 8% of the property’s value. These include:
- Notary fees
- Acquisition tax
- Trust setup (if applicable)
- Title registration
Legal fees (optional but recommended)
Can I get financing in Mexico?
Yes, though most foreign buyers choose to pay in cash.
Some Mexican banks offer mortgages to foreigners, and private financing or developer payment plans may also be available, especially for pre-construction properties.
If you’re buying with financing, plan for higher interest rates and more documentation than in your home country.
Is buying pre-construction safe?
It can be, as long as the developer is reputable and the purchase is properly structured.
Many buyers prefer pre-construction because of lower prices and customization options. I always verify permits, delivery timelines, and legal contracts to protect your investment.
Do I need a real estate agent in Mexico?
Absolutely. A professional agent:
- Represents your interests (not the seller’s)
- Helps you avoid common pitfalls
- Connects you with vetted professionals
- Provides guidance on local laws, taxes, and market value
- Ensures a smooth, legal closing process
Buying real estate in Mexico is different—but with the right advisor, it can be simple, safe, and rewarding.