How to buy the property in Mexico

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Lately, you hear lots about Mexico’s incredible investment opportunities, comfortable, affordable lifestyle, and easy visa process. No wonder that thousands of Americans and Canadians are buying property here, either for investment or to move permanently.

Whether you’re looking for a perfect retirement home or an investment property, I can help you turn your dream into reality.

First question: can foreigners own property in Mexico? The answer is YES. It is perfectly legal for foreigners to buy and own Mexican property, and it’s easier than you think.

When a foreigner purchase property less than 50 km from the coast, a fideicomisso, or bank trust, is required. This is a legal procedure in which a Mexican bank acts as a trustee for the property and holds title to the property on behalf of the foreign buyer.

The trust lasts for 50 years and is automatically renewed. During this period, the foreigner has all the rights and benefits of ownership, including the ability to sell, rent, or inherit the property. The Fideicomisso protects your rights as an owner and makes it easier for you to buy and sell as a foreigner. Fideicomisso costs about $2,000 to obtain, and then you pay an annual fee of $500, regardless of the value of the property. You could say that this is an additional tax on seaside properties for foreigners. Considering that the basic property tax is a very low – 0.001%, the total amount does not seem burdensome.

Some aspects of buying property in Mexico are the same as in any other foreign country. Having a reliable trustworthy realtor is crucial. The most common mistakes can be avoided if you work with an experienced and honest real estate agent. I will help you research and understand the local real estate market, choose the right property and financing options.

The purchase is completed at a notary office. A lawyer checks the identity of the buyer and seller and checks the property for debt, calculates government taxes, creates a Title Deed for the property. This process called the closing and has a cost, which includes government taxes and legal fees. Typically it is 6-9% of price of the property.

You have probably heard stories about expats “getting a great deal” from a nice guy they met on vacation. Most of these real estate deals will not be what they seem. Bad news spread much faster than good one, so many people heard about good people who lost money in Mexico real estate. To avoid such experience stay with professionals from reputable companies.

We have all heard about the three main rules of buying real estate: Location! Location! Location! Different areas have different advantages and disadvantages that you need to consider when choosing what suits you and your lifestyle.

With an abundance of available real estate projects, a steadily growing economy, and favorable political stability, Mexico is one of the most attractive countries for foreign investment in North America.

The endless beaches, warm, mild climate, and the longest swimming season, the Mexican Caribbean coast is one of the best places for vacations and life. Real estate in popular coastal cities such as Tulum, Playa del Carmen and Cancun can bring a good income of 8 -12% per year and capital growth of 20-30% per year depending on the right choice of property.