> ## Content Index > Fetch the complete content index at: https://settlemexico.com/llms.txt > Use this file to discover other available public pages before exploring further. # Buying property in Mexico as a foreigner: the trust, the notary and the real costs - URL: https://settlemexico.com/buying-property-mexico/ - Published: 2026-10-09T13:32:37.000Z - Updated: 2026-10-18T19:03:35.000Z - Description: Foreigners can own property in Mexico, through a bank trust near the coast and borders and outright elsewhere. The restricted zone, the fideicomiso, what the notary does, closing costs, and the checks that protect you. - Author: Roger Scott - Tags: Guides **The short answer:** yes, foreigners can own property in Mexico. How depends on where it is. Within 100 km of a border or 50 km of the coast (the *restricted zone*), a foreigner can't hold a home's title directly. A Mexican bank holds it in a trust, a **fideicomiso**, for up to 50 years, renewable, and you keep all the rights to use, rent, sell and leave it to heirs. Everywhere else you can own outright, after signing an agreement with the Foreign Ministry (SRE). On top of the price, budget roughly 4–7% for closing costs plus the trust's fees. You can't pay 941,413 pesos or more in cash, and buying a home doesn't give you residency. This guide covers the parts that are different for a foreign buyer: the restricted zone, the trust, the notary, closing costs and the checks that protect you. Once you own, the yearly bills are [predial](https://settlemexico.com/predial-mexico/) and [CFE electricity](https://settlemexico.com/cfe-bill-mexico/). If you're not sure yet, [renting first](https://settlemexico.com/renting-in-mexico/) is the cheapest way to find out whether a city suits you. ## The restricted zone Article 27 of the Constitution says foreigners may never acquire direct ownership of land in a strip **100 kilometers wide along the borders and 50 kilometers wide along the coasts**. The Foreign Investment Law calls it the *zona restringida*. In practice it covers almost every beach town people buy in (Puerto Vallarta, Mazatlán, Cancún and the Riviera Maya, the Baja California coast), and none of the inland highland cities such as Mexico City, Guadalajara, Querétaro, San Miguel de Allende or Lake Chapala. Some municipalities lie partly inside the zone. The notary checks the exact location of the property, and INEGI publishes the official list of municipalities wholly or partly inside it. ## Inside the zone: the fideicomiso A *fideicomiso* is a trust. A Mexican bank, as trustee (*fiduciario*), holds the title, and you are the beneficiary (*fideicomisario*) with the right to use and benefit from the property. What that means in practice: - **You control the property.** You can live in it, rent it out, improve it and sell it, with the bank following your instructions. - **It lasts up to 50 years and can be extended** at your request (Foreign Investment Law, Article 13). - **You name substitute beneficiaries** in the trust, so the property can usually pass to them without a Mexican probate. - **It needs an SRE permit,** which the bank requests. The federal fee for the permit is 21,648.83 pesos in the Federal Fees Law, adjusted for inflation. - **The bank charges a setup fee and an annual fee.** Each bank sets its own, and some quote in dollars. Ask two or three banks for their fee schedule in writing before the notary picks one. If the seller already holds the property in a fideicomiso, the trust rights can often be assigned to you instead of creating a new one. Ask the notary which option costs less. You'll also see the option of buying through a Mexican company. Inside the zone, a company with foreign shareholders may own property directly only for non-residential use (Article 10). It isn't a way to hold a holiday home, and running a company has its own accounting and tax costs. ## Outside the zone: owning outright Outside the restricted zone a foreigner can hold title in their own name. First you sign an agreement with the SRE, the *convenio de renuncia* (Article 10-A of the Foreign Investment Law). You agree to be treated as a Mexican national for that property and not to ask your own government to intervene over it, on pain of losing it. Lawyers call it the Calvo clause. The notary usually files it for you. The federal fee for it is 5,252.02 pesos in the Federal Fees Law, which the government adjusts for inflation. Where the municipality lies wholly outside the zone, the permit counts as granted if the SRE doesn't refuse it within five business days. ## The notary is not a US notary A Mexican *notario público* is an experienced lawyer appointed by the state, and no property sale is final without one. The notary: - checks the seller's title and requests the *certificado de libertad de gravamen*, the certificate that the property has no liens or mortgages; - confirms that predial and water are paid up; - handles the SRE agreement or the trust permit; - calculates and collects the transfer tax and the seller's capital-gains tax; - drafts the deed (*escritura*), has it signed, and registers it with the state's Public Property Registry (*Registro Público de la Propiedad*). The buyer usually chooses the notary, since the buyer pays most of the costs. Choosing your own, rather than the seller's or the developer's, is worth doing. ## Closing costs Most of the closing costs fall on the buyer. Rough ranges, which vary by state: | Cost | Typical size | | ---------------------------------------------------------- | ------------------------------------------------------- | | Acquisition tax (*ISAI*), set by the state or municipality | About 2–5% of the value, the largest item | | Notary's fees | About 0.5–1.5% of the value, plus 16% IVA | | Public registry fees | A fraction of a percent, set by the state | | Appraisal (*avalúo*) and certificates | Several thousand pesos | | Fideicomiso, if in the restricted zone | SRE permit plus the bank's setup fee, then a yearly fee | Buyer's costs before any trust commonly come to 4–7% of the price. The seller normally pays their capital-gains tax and the real-estate agent's commission. Mexican tax residents selling their home can be exempt from that tax up to a limit; see [taxes for Americans living in Mexico](https://settlemexico.com/taxes-americans-in-mexico/). Ask the notary for a written quote early, because the ISAI rate is where states differ most. ## No cash for the purchase price Mexico's anti-money-laundering law bans paying for property in cash, Mexican or foreign currency, at or above 8,025 times the daily UMA (Article 32). With the 2026 UMA of 117.31 pesos, that is **941,412.75 pesos**, and the UMA rises every February. Pay by bank transfer and keep the records, because the notary records how the price was paid. ## What to check before you pay a deposit 1. **That the land isn't *ejido* land.** Ejidos are communal farmland under the Agrarian Law. Parcels can only be sold to other members of the ejido or residents of that community, unless they have been converted to full private ownership (*dominio pleno*) and entered in the Public Property Registry. Cheap land near beaches is sometimes ejido land. The notary's title search should show it. 2. **That the seller is the registered owner,** and that every co-owner, including a spouse where the law requires it, will sign. 3. **That predial, water and condo fees are paid.** Debts stay with the property. 4. **Where the deposit goes.** Keep it modest and, for a large one, use an escrow service rather than paying the seller or agent directly. 5. **With pre-construction, the developer.** You're buying a promise; check the developer's permits, land title and finished projects. 6. **That you understand what you sign.** The deed and the promise-to-buy contract (*contrato de promesa*) are in Spanish. Get a translation, and have your own lawyer read the contract before you sign it. ## Buying a home doesn't give you residency Owning property in Mexico is not an immigration status. To live there beyond tourist stays you still need a residency visa, which is based on your income or savings, not on what you own. Once you have it, you can bring your household goods in tax-free, once, under [menaje de casa](https://settlemexico.com/menaje-de-casa/). ResidencyMexico explains [why property doesn't buy residency or citizenship](https://residencymexico.com/blog/mexico-citizenship-by-investment-2026?utm%5Fsource=settlemexico&utm%5Fmedium=web&utm%5Fcampaign=buying-property-mexico). ## Frequently asked questions ### Can a foreigner buy a house in Mexico? Yes. Outside the restricted zone you can hold the title in your own name after signing the SRE agreement. Within 100 km of a border or 50 km of the coast, you buy through a bank trust (fideicomiso) that gives you full use of the property. ### How long does a fideicomiso last? Up to 50 years, and it can be extended at your request. You can also sell the property, or pass it to the substitute beneficiaries you name, before then. ### What are closing costs in Mexico? For the buyer, commonly about 4–7% of the price: mostly the state's acquisition tax, plus notary fees, registry fees and an appraisal. A fideicomiso adds the SRE permit and the bank's fees. ### Does buying property in Mexico give you residency? No. Property ownership and immigration status are separate. Residency is based on your income or savings. ## Sources - Constitution of Mexico, [Article 27, section I](https://www.diputados.gob.mx/LeyesBiblio/pdf/CPEUM.pdf?ref=settlemexico.com) (the 100 km and 50 km strip). - [Ley de Inversión Extranjera](https://www.diputados.gob.mx/LeyesBiblio/pdf/LIE.pdf?ref=settlemexico.com) (last amended 2024): Article 2 (restricted zone), Article 10 (companies), Article 10-A (agreement outside the zone, five-day rule), Articles 11–14 (fideicomiso, 50 years renewable, SRE permit). - [Ley Federal de Derechos](https://www.diputados.gob.mx/LeyesBiblio/pdf/LFD.pdf?ref=settlemexico.com), Article 25, sections V(a) and XV (SRE fees for the trust permit and the agreement). - [Ley Federal para la Prevención e Identificación de Operaciones con Recursos de Procedencia Ilícita](https://www.diputados.gob.mx/LeyesBiblio/pdf/LFPIORPI.pdf?ref=settlemexico.com), Article 32, section I (cash ban at 8,025 UMA); 2026 UMA of 117.31 pesos published by INEGI ([IDC](https://idconline.mx/laboral/2026/01/09/valor-uma-2026-inegi-publica-nuevos-montos?ref=settlemexico.com)). - [Ley Agraria](https://www.diputados.gob.mx/LeyesBiblio/pdf/LAgra.pdf?ref=settlemexico.com), Articles 80–82 (sale of ejido parcels, dominio pleno). - Closing-cost ranges: [IDC](https://idconline.mx/corporativo/2023/09/20/5-gastos-notariales-que-debes-tomar-en-cuenta-antes-de-comprar-una-casa?ref=settlemexico.com) and [Cotizador Hipotecario's state guide](https://cotizadorhipotecario.mx/guias/gastos-de-escrituracion-por-estado/?ref=settlemexico.com). These are typical figures, not official rates; the notary's written quote is the one that counts. **Planning to live in the house, not just visit?** Buying doesn't give you residency; your income or savings do. ResidencyMexico's free calculator checks whether they meet your consulate's requirements. [Open the calculator →](https://residencymexico.com/calculator?utm%5Fsource=settlemexico&utm%5Fmedium=web&utm%5Fcampaign=buying-property-mexico) I run ResidencyMexico as well as this site. Last checked October 9, 2026, against the federal laws cited above. Taxes and notary fees vary by state. This is general information, not legal advice: use a notary and, for anything unusual, your own lawyer. If something here doesn't match your experience, please [tell me](mailto:hello@settlemexico.com). ![Roger Scott](https://settlemexico.com/content/images/2026/10/roger-scott.jpeg) Written by Roger Scott I went through Mexican residency myself, and I write these guides from primary sources: the law, the government agency, the official page. I also run [ResidencyMexico](https://residencymexico.com/?utm%5Fsource=settlemexico&utm%5Fmedium=web&utm%5Fcampaign=author-box), which helps people through the residency paperwork. [More about me, and how facts are checked](https://settlemexico.com/about/).