Question 1

Can Americans buy property in Mexico?

Accepted Answer

Yes. Americans can legally buy property anywhere in Mexico. For coastal properties within 50 kilometers of the shoreline (including all of Los Cabos), a fideicomiso bank trust is required. This gives you full ownership rights — you can live in it, rent it, remodel it, sell it, and pass it to your heirs.

Question 2

Can foreigners own property in Mexico?

Accepted Answer

Yes. Citizens of any country can own property in Mexico. In the restricted zone (within 50km of coast or 100km of borders), foreigners use a fideicomiso bank trust. Outside the restricted zone, foreigners can hold direct deed ownership identical to Mexican nationals.

Question 3

What is the restricted zone in Mexico?

Accepted Answer

The restricted zone is all land within 50 kilometers (31 miles) of any Mexican coastline and within 100 kilometers (62 miles) of any international border. Every property in Los Cabos, Puerto Vallarta, Cancun, and other beach destinations falls within this zone. Foreigners must use a fideicomiso to own residential property here.

Question 4

Do I need a visa to buy property in Mexico?

Accepted Answer

No. You do not need a visa or residency to purchase property in Mexico. Many foreign buyers complete transactions while visiting on a standard tourist permit (FMM), which allows stays of up to 180 days. Property ownership does not automatically grant residency, but it can support a residency application.

Question 5

What is a notario publico in Mexico?

Accepted Answer

A notario publico is a government-appointed attorney who supervises all real estate transactions in Mexico. Unlike a US notary, a Mexican notario is a highly qualified lawyer with the authority to authenticate documents, calculate taxes, register deeds, and legally bind transactions. The notario represents the buyer, seller, and government simultaneously.

Question 6

What is ejido land and can I buy it?

Accepted Answer

Ejido land is communal agricultural land that cannot be legally owned by foreigners under any circumstances. It cannot be sold, transferred via fideicomiso, or covered by title insurance. Some ejido land can be privatized through a process called dominio pleno, but this takes 5-10 years and is not guaranteed. Never buy ejido land — it is the number one source of real estate fraud for foreign buyers in Mexico.

Question 7

What is a fideicomiso?

Accepted Answer

A fideicomiso is a Mexican bank trust that enables foreigners to own residential property in Mexico's restricted zone (within 50km of the coast). A Mexican bank holds legal title as trustee, while you — the foreign buyer — are the beneficiary with full control and ownership rights. The trust lasts 50 years and is renewable indefinitely.

Question 8

How much does a fideicomiso cost?

Accepted Answer

A fideicomiso costs $2,000 to $3,000 USD to set up (one-time fee at closing) plus $550 to $1,000 USD in annual maintenance fees paid to the trustee bank. The SRE permit from the Ministry of Foreign Affairs costs approximately $1,500 MXN. Total first-year cost is approximately $3,000 to $4,000 USD.

Question 9

How long does a fideicomiso last?

Accepted Answer

A fideicomiso has an initial term of 50 years from the date of creation. It can be renewed for another 50 years with a simple administrative process. After 100 years total, a new foreign affairs permit is required. In practice, most properties change hands well before the 50-year term expires.

Question 10

What happens to my fideicomiso if the bank fails?

Accepted Answer

Your property is fully protected. The fideicomiso trust is legally separate from the bank's own assets. If the bank is liquidated or merged, your trust transfers automatically to another authorized bank. Your ownership rights, property, and all trust terms remain intact. This protection is guaranteed by Mexican banking law and regulated by the CNBV.

Cabo Real EstateFAQ

Most Asked Questions

Can Americans buy property in Mexico?

Can foreigners own property in Mexico?

What is the restricted zone in Mexico?

Do I need a visa to buy property in Mexico?

What is a notario publico in Mexico?

What is ejido land and can I buy it?

What is a fideicomiso?

How much does a fideicomiso cost?

How long does a fideicomiso last?

What happens to my fideicomiso if the bank fails?

Is a fideicomiso safe? Can the bank take my property?

How long does it take to buy property in Mexico?

Ownership & Legal

Can Americans buy property in Mexico?

Can foreigners own property in Mexico?

Can Canadians buy property in Mexico?

What is the restricted zone in Mexico?

Do I need a visa to buy property in Mexico?

Does buying property in Mexico give me residency?

What is a notario publico in Mexico?

Can I buy property in Mexico with a US LLC or corporation?

What is ejido land and can I buy it?

Is title insurance available in Mexico?

Can I build on vacant land in Mexico as a foreigner?

What rights do I have as a property owner in Mexico?

Do I need a Mexican bank account to own property?

Can two people co-own property in Mexico?

Is there a limit on how many properties a foreigner can own in Mexico?

Fideicomiso

What is a fideicomiso?

How much does a fideicomiso cost?

How long does a fideicomiso last?

What happens to my fideicomiso if the bank fails?

Can I change the bank that holds my fideicomiso?

What is the difference between a fideicomiso and a Mexican corporation?

Which banks offer fideicomisos in Mexico?

Can I sell my property if it's in a fideicomiso?

Can I name beneficiaries in my fideicomiso?

Do I pay the fideicomiso fee even if I don't live in the property?

Is a fideicomiso safe? Can the bank take my property?

How long does it take to set up a fideicomiso?

Buying Process

How long does it take to buy property in Mexico?

What are the steps to buy property in Mexico?

Do I need a real estate agent to buy in Mexico?

How much is the deposit when buying property in Mexico?

Can I buy property remotely without visiting Mexico?

What is a contrato de promesa?

What due diligence should I do before buying in Mexico?

Do I need a lawyer to buy property in Mexico?

What is an avaluo and is it required?

Can I make an offer below asking price in Mexico?

What happens at closing in Mexico?

Can I use a US escrow company for a Mexico purchase?

Closing Costs

How much are closing costs in Mexico?

What is the acquisition tax (ISAI) in Mexico?

How much are notario fees in Mexico?

Does the buyer or seller pay closing costs in Mexico?

Are there hidden costs when buying in Mexico?

How much is the property appraisal (avaluo) in Mexico?

Do I pay closing costs in USD or Mexican pesos?

Can I deduct closing costs on my US taxes?

Taxes

How much are property taxes in Cabo San Lucas?

What is the capital gains tax on selling property in Mexico?

Do I have to pay US taxes on my Mexico property?

What is the lodging tax on short-term rentals in Cabo?

Do I need a Mexican tax ID (RFC) to own property?

Is there an inheritance tax in Mexico?

How do I pay property taxes in Mexico?

Are there tax benefits to owning rental property in Mexico?

What is the ISR tax in Mexico?

Can I avoid capital gains tax in Mexico?

Financing

Can I get a mortgage to buy property in Mexico?

Do I need to pay cash for property in Mexico?

Can I use my US home equity to buy in Mexico?

Cabo Real Estate
FAQ