Mexican laws give foreigners the ability to own real estate in Mexico. There is, however, a Restricted Zone that extends 50 km inland from the coastline. Outside the Restricted Zone, a foreigner may acquire land and be direct owners of the property with all the rights of a Mexican national in compliance with Mexican Law. Inside the Restricted Zone, there are two alternatives for foreigners who wish to buy real estate. Since 1973, foreigners have been able to purchase coastal property through a Mexican bank trust, known as a Fideicomiso.

A Fideicomiso is established by the government and gives foreigners the same rights of ownership as Mexican citizens. The only difference is that they never receive the actual fee simple title. A bank holds it in trust for them. The Trust system of ownership is sanctioned by the Mexican government, provided for under the Mexican Constitution, and secured by the Central Bank of Mexico, all exclusively for the purpose and protection of enabling foreign ownership of coastal property in Mexico.

For most purchases, you will need to present your Passport and Tourist Visa, which is issued to you upon arrival. (If you already have your Temporary or Permanent Residency Visa, you would present this in lieu of the Tourist Visa.) If you are married, divorced, widowed, you may also need to present the documentation to demonstrate your civil status.

While each property and negotiation process will result in different terms and specifics, most transactions follow general pattern. Once you have decided on a property to purchase, the negotiation process begins:

• Through an “Offer to Purchase” document, buyer and seller can negotiate price and terms of sale.
• Once the price and basic terms have been agreed upon via the “Offer to Purchase”, then a good faith deposit is given to the seller by the buyer. This is a small amount that indicates the sincerity of the buyer and in exchange, the seller removes the property from the market for a short period of time. During this time, the buyer’s notary or attorney can review the documents related to the sale in a process called “due diligence”.
• After the due diligence process has proven the property suitable for sale, the buyer and seller enter into a formal Buy/Sell contract. This contract will include all of the terms and conditions of the sale, as well as any additional deposit that will be given to seller prior to closing. (Often times, if buyer requires an extended period of time to close, seller will request a down payment.)
• Once buyer and seller have entered the Buy/Sell contract, the buyer’s side can then apply for title insurance and contract with a bank to open a real estate trust. The bank will apply for a federal permit to open a trust on the buyer’s behalf. The seller’s side will gather all necessary closing documents that had not been gathered during the “due diligence” process.
• Once both sides are ready, parties close before a notary and the real estate trust is formalized.
• This process generally takes 60-90 days, providing that seller’s paperwork is in order, the buyers have cash ready for closing, and that government offices are operating under normal hours (government offices essentially close from mid-December through mid-January).

All buyers who are listed on the deed will need to be physically present at the time of closing. If one or more are unable to attend closing, a representative with a Power of Attorney for each absentee buyer must be present for closing.

• Annual Property Tax (“Predial”) – most residential properties pay less than $500 USD.
• Annual Real Estate Trust Fee – paid to Trustee Bank (Approx. $550 USD)
• Annual Federal Beach Tax – only assessed to beachfront properties and based on meters of beach frontage.
• Utilities (Gas, Water, Electricity, Phone, etc.)
• Condominium or Homeowner’s Association Fees, if applicable.