Step-by-Step Guide to Buying Real Estate in Mexico

Who do you need in your Mariachi??

A Mariachi is a team of people who play in sync to create meaningful experiences.

Buying in Mexico is safe and rewarding when done properly. The key is the right team, we call a "Mariachi": Legal guidance, due diligence, and proper structuring (fideicomiso or corporation).

Choose the right location.

Lifestyle choice: Do you want a tourist hub (Cancún, Playa del Carmen, Puerto Vallarta, Cabo), a colonial town (San Miguel de Allende, Mérida), or a quieter fishing village?

Accessibility: Consider proximity to airports, hospitals, and U.S. flights.

Investment vs. living: Rentals work best in tourist-heavy areas, while retirees may prefer smaller, quieter communities.

Understand Foreign Ownership Rules.

A big misconception is, foreigners cannot directly own property within the restricted zone (50 km from the coast, 100 km from the border).
Not true! We got options.

Fideicomiso (Bank Trust):

You hold the property via a Mexican bank (you are the beneficiary).
Valid for 50 years, renewable indefinitely.
Annual fee: ~$500–$700.

Mexican Corporation:

Common for commercial or rental investments.
You own property through a company, not as an individual.
Requires ongoing tax filings and accounting.

Surround yourself with the right team.

Real estate agent: Choose one experienced with foreign buyers and with a strong local reputation.

Attorney (Notario Público): Crucial for verifying clear title, checking permits, and drafting contracts.

Accountant (if using a corporation): Helps with taxes and compliance.

Do the Due Diligence.

We would do it with you:

Verify the title is clear (no liens, debts, or disputes).
Confirm zoning and permits (especially if building or buying undeveloped land).
Check utilities access (water, electricity, internet).
Ensure HOA/condo rules (if applicable) align with your rental or living plans.

Make an Offer & Sign a Promissory Agreement.

Typically requires a deposit (5–10%).

Agreement should spell out deadlines, payment terms, and contingencies.
All documents must be in Spanish (official language), but request a certified translation for yourself.

Set Up the Fideicomiso or Corporation.

If in the restricted zone, your attorney applies for a bank trust (takes ~4–8 weeks).
For investment/rental businesses, set up a Mexican corporation with help from an attorney + accountant.

After the purchase.

Annual Costs:

Property taxes (usually very low compared to U.S.).
Fideicomiso renewal fee (if applicable).
HOA fees (if condo/community).
Property Management: If renting or not living there full-time, hire a local management company.
Taxes: Rental income in Mexico is taxable; coordinate with a cross-border tax specialist to avoid double taxation.

Closing.

The Notario Público oversees the final sale and ensures taxes are paid.
Buyer pays closing costs (approx. 4–7% of purchase price) including notary fees, transfer tax, bank fees.
You receive the escritura (deed), officially registered in your name (via the fideicomiso or corporation).

Tips for staying safe.

Always use a reputable attorney, never rely solely on the seller or agent.
Avoid “ejido land” (communal farmland) unless it’s been legally privatized — foreigners cannot legally own ejido property.
Get everything in writing and notarized.
Consider title insurance for added protection.

Summary: Buying in Mexico is safe and rewarding when done properly. The key is legal guidance, due diligence, and proper structuring (fideicomiso or corporation).