Complete Guide to Buying Property in Mexico as a Foreigner

Carlos Ruiz
Apr 30
2 min read

Buying property in Mexico is more accessible than many people think, but it's important to understand the legal framework, especially if it's a property near the coast, in places like Puerto Vallarta or Banderas Bay.

This guide explains the essential aspects.

Can foreigners own property in Mexico?

Yes, foreigners can legally own property in Mexico, including beachfront homes. However, properties located within the "restricted zone" (less than 50 km from the coast or 100 km from international borders) require a specific ownership structure.

What is a bank trust?

In coastal areas, foreign buyers often acquire properties through a bank trust.

Here's how it works:

A Mexican bank holds the title to the property in its name.

You retain all ownership rights: you can sell, rent, remodel, or bequeath the property to your heirs.

The trust is renewable and secure.

This system has been in operation for decades and is widely used in markets such as Puerto Vallarta.

Step-by-step purchase process

1. Make an offer

Once you find a property, your agent will help you submit an offer and negotiate the terms.

2. Sign a purchase agreement

This contract details the price, deadlines, conditions and terms of the deposit.

3. Due diligence

A notary public verifies:

Property title

Liens or debts

Zoning and permits

4. Establishment of the trust

If applicable, the bank establishes the trust.

5. Closing

The final documents are signed, the funds are transferred, and the property is officially registered.

Additional costs to consider

In addition to the property price, buyers should budget for the following:

Closing costs (generally between 4% and 7%)
Notary fees
Establishment of a trust and annual maintenance fees
Property taxes (generally lower than in the US or Canada)

Is financing available?

While some financing options exist, most foreign buyers pay in cash or use financing from their home country. Developer financing is sometimes available for projects under construction.

Common mistakes you should avoid

Not working with a qualified local real estate agent
Omitting due legal diligence
Underestimating closing costs
Buying based solely on online ads without visiting the property

Final considerations

Buying a property in Mexico, especially in high-demand coastal areas like Puerto Vallarta and Banderas Bay, can be a smart investment and an improvement to your lifestyle.

With the right guidance, the process is safe, transparent, and very rewarding.