Can Foreigners Buy Property in Mexico?

Mexico has clear rules for foreign buyers, and they're more accommodating than most people expect.

In interior Mexico - Mexico City, San Miguel de Allende, Guadalajara, Oaxaca - foreigners can own property directly. Full freehold, same rights as Mexican citizens. No special structures required.

The coastal and border "restricted zone" (within 50km of any coast, 100km of any border) works differently. This includes the Riviera Maya, Los Cabos, Puerto Vallarta, and most beach destinations foreigners actually want. Here, direct ownership isn't permitted, but the fideicomiso (bank trust) structure provides an established solution.

A fideicomiso works like this: a Mexican bank holds legal title to the property, but you have 100% beneficial ownership. You can live there, rent it, renovate it, sell it, leave it to heirs - all the rights of ownership. The bank is a passive holder with no real control. The trust runs 50 years and is renewable.

Setup costs around $500-1,000. Annual fees run $500-800. On a $300K property, that's trivial. Some buyers resist the concept ("I don't really own it"), but the fideicomiso has been used by hundreds of thousands of foreigners since the 1970s. It's battle-tested.

The buying process is similar to other countries: make an offer, sign a preliminary contract, set up the fideicomiso if needed, complete due diligence with a notary (notaries in Mexico handle much of what lawyers do elsewhere), sign the final escritura (deed), register the property.

Transaction costs run 3-6% total: notary fees (0.5-1%), acquisition tax (2-5% depending on state), trust setup if applicable. Lower than most European countries.

The Riviera Maya (Tulum, Playa del Carmen, Cancun) is booming with American remote workers and investors. Yields run 5-8% on vacation rentals. San Miguel de Allende and Lake Chapala have large established expat communities, particularly retirees.