How to buy property in Mexico as a foreigner: a guide for U.S. and Canadian buyers

Can foreigners own property in Mexico? Yes — and the process is simpler than most buyers expect.

Article 27 of the Mexican Constitution prohibits direct ownership of real estate by foreigners within 50 kilometers of the coastline and 100 kilometers of the national borders. Because nearly every coastal destination international investors care about — Punta de Mita, Riviera Maya, Los Cabos, Puerto Vallarta — falls inside this "restricted zone," the legal mechanism designed to enable foreign ownership is the bank trust (fideicomiso).

The instrument has existed since 1973 and has handled millions of transactions without significant legal incident. It is the standard, secure path to acquisition for U.S., Canadian and European buyers.

What is a fideicomiso? The plain-English version

A fideicomiso is a trust agreement, regulated under Mexican law, in which:

• A Mexican bank (Scotiabank, BBVA, Santander, etc.) acts as the trustee
• The foreign buyer is the named beneficiary
• The seller transfers the property into the trust

Although the bank holds legal title, the beneficiary retains every right of ownership:

• Exclusive use and enjoyment of the property
• The right to sell, lease or mortgage
• The right to remodel, demolish or build
• The ability to name successor beneficiaries (estate planning)
• Full entitlement to any capital gains

The bank's role is purely custodial. It cannot sell the property, encumber it or interfere with the beneficiary's decisions absent express instructions.

The buying process for foreign buyers, step by step

Step 1: Property selection and offer

Work with a real estate agent certified by AMPI (Asociación Mexicana de Profesionales Inmobiliarios), Mexico's equivalent of NAR. AMPI maintains educational and ethical standards that establish a baseline of competence.

Step 2: Sign the promise of purchase agreement

The agreement is executed before a notary public with a 5–10% earnest deposit. It sets out:

• Price and payment terms
• Closing deadline
• Default penalties
• Delivery conditions

Step 3: Set up the fideicomiso

The notary coordinates with the trustee bank to:

• Request authorization from the Ministry of Foreign Affairs (SRE) — 15 to 30 business days
• Draft the trust agreement — defines the beneficiary's rights
• Execute the public deed — buyer, seller, notary and bank representative sign
• Record with the Public Registry of Property

Step 4: Taxes and closing costs

Step 5: Delivery of the property

After execution and recording, the beneficiary receives:

• Certified copy of the public deed
• Adhesion contract to the trust
• Tax payment receipts
• Physical access to the property

Cost breakdown for the fideicomiso

One-time setup costs

Annual costs

Renewing the trust

The fideicomiso has an initial term of 50 years, renewable for equal periods indefinitely. Renewal is an administrative formality the bank typically processes after notifying the beneficiary. Renewal cost is roughly equivalent to the original setup adjusted for inflation.

Tax and currency considerations

Taxes for the foreign buyer

• Property tax (predial): 0.1% to 0.5% of assessed value annually — meaningfully lower than U.S. property taxes
• VAT on new construction: 16% (typically built into the list price)
• Capital gains on sale: 25–28% on net gain for foreign sellers (as of January 2025)

Currency considerations

Most transactions on the Riviera Nayarit are denominated in U.S. dollars, although payment may settle in Mexican pesos at the prevailing exchange rate. For U.S. and Canadian buyers this neutralizes currency risk on the purchase price. A few practical notes:

• Ongoing costs (predial, utilities) are paid in pesos
• Rental income can be received in dollars
• At sale, payment currency is negotiated between the parties

Why Punta de Mita specifically — for U.S. and Canadian buyers

Proximity and connectivity

• Puerto Vallarta International Airport (PVR): about 28 km in a straight line from Cumbres de Mita (roughly 45 minutes by car)
• Direct flights from: Los Angeles (3.5h), Houston (2.5h), Dallas (2.5h), Denver (3.5h), Phoenix (2.5h), Chicago (4.5h), Calgary (4.5h), Vancouver (4.5h)
• Time zone: Central Time (same as Dallas; one hour behind New York)

International community

Punta de Mita and the wider Riviera Nayarit corridor are home to one of the largest concentrations of permanent U.S. and Canadian residents in Mexico — an estimated 50,000+ across the Puerto Vallarta–Banderas Bay region.

English-language services

• Hospitals operating to international standards (CMQ, San Javier)
• Banks with English-speaking staff and USD operations
• Notaries experienced in foreign-buyer transactions
• Bilingual real estate attorneys
• Internationally certified brokerages

Frequently asked questions

Am I 100% the owner, or does the bank have rights over my property?

You are the 100% beneficiary. The bank holds legal title strictly as a constitutional formality — it has no right to use, enjoy, sell or make decisions about the property. In practical terms your position mirrors that of a fee-simple owner in the United States.

What happens if I sell the property?

The trust can be transferred in two ways: (a) sell the property and wind down the current trust while opening a new one for the buyer, or (b) assign the beneficiary rights of the existing trust to the buyer (faster and less expensive). Both processes are standard and typically complete in 30–60 days.

Can I leave the property to my heirs?

Yes. The fideicomiso lets you name successor beneficiaries in the original agreement. Upon the death of the principal beneficiary, the property passes directly to the named successors without probate — a meaningful advantage over direct ownership in many U.S. states.

Is it safe to buy in Mexico given the headlines about ejidos and communal land?

Ejido risk applies exclusively to communal land (ejidal or comunidad), which cannot legally be sold to foreigners without a prior "regularization" process. Properties inside formal developments built on private-property land (propiedad privada), rather than ejido land, are not exposed to this risk. Always verify that the title is private property and not ejidal.