It is completely legal for foreigners to buy & own Mexican real estate. Beyond the somewhat tedious process of setting up a bank trust (fideicomiso), buying property in Mexico as an American or Canadian is fairly straightforward.
We all have heard about how they purchase beach property in Mexico with a relatively low budget. And you know what? It’s true, all you need to do is do a little research and find a trusted Real Estate Company.
Can Americans buy property in Mexico?
The myth about Americans or Canadians not being able to buy a property has to stop! It’s not true.
Mexican citizens are able to buy properties anywhere within the country, but foreigners face some restrictions when purchasing in some of the more desirable areas.
Properties within 50 Km (31 Mi) of the coast or 100 Km 62 (Mi) from a border will have to purchase the property(a house or a condo) through a trust with a Mexican bank known as a fideicomiso. International buyers are encouraged to work with a notary as they figure out all the paperwork and documents needed to create the fideicomiso. The fideicomiso is a renewable 50-year trust that costs on average $600 USD per year.
While the process may vary, the general process for a Canadian or US Citizen buying property in Mexico’s “restricted zone” should be:
- Find your dream property (a house or a condo) and make an offer.
- Sign the initial sales agreement to sell/buy. A 5%-10% deposit is usually expected from the buyer. The legally binding version of the contract is in Spanish and should be written by a Mexican lawyer.
- Send your deposit via wire transfer, along with any other sequential payments as outlined in the terms of your sales contract.
- Once you have paid the full balance for the property, the seller contacts your bank to start the trust application for your fideicomiso.
- Pay closing costs, taxes, & fees. Closing costs average around 6% in Playa del Carmen, Mexico.
- Within 3 months of your closing date, the Public Registry issues the final deed (escritura) to your property and the property is officially yours.
You may also like this: All inclusive vs Airbnb
The whole process of registering a property can be completed in 45 – 100 days. The process may be slightly different depending on the type of property; e.g. pre-construction deals, beachfront properties, land purchases, etc.
If you have more questions about how to purchase a property in Mexico, please send us a message, and we will be pleased to help you.