FAQ for Non-Mexican Citizens: Renting, Purchasing, and Leasing Property in Mexico

1. Can a non-Mexican citizen rent property in Mexico? Yes. Foreigners can freely rent residential or commercial properties in Mexico without any legal restriction. It's a straightforward process similar to many other countries.

2. Can a non-Mexican citizen purchase property in Mexico? Yes, but with restrictions near the coast and borders. Foreigners can directly purchase property anywhere in Mexico except within the “Restricted Zone” — 50 km from the coast and 100 km from international borders. In these zones, foreigners must purchase through a bank trust (fideicomiso) or a Mexican corporation.

3. What is a fideicomiso (bank trust)? A fideicomiso is a legal arrangement where a Mexican bank holds the title to the property on behalf of the foreign buyer. The buyer retains all rights to sell, lease, or bequeath the property. Trusts are typically renewable every 50 years.

4. Can foreigners own property outright in the interior of Mexico? Yes. Outside of the Restricted Zone, foreigners can hold direct title to real estate, just like Mexican nationals.

5. Can a foreigner lease commercial property in Mexico? Yes. Foreigners can lease commercial real estate either as individuals or through a Mexican corporation. Long-term leases are often secured with a formal contract and may require a Mexican guarantor.

6. What are the costs associated with buying property in Mexico? Typical costs include:

• Acquisition tax (2%-4.5%)

• Notary fees

• Bank trust setup fees (if applicable)

• Annual bank trust maintenance fees

• Registration and legal fees

• Realtor commission fees (typically 4%-8%, but may vary by agreement)

7. Is financing available to foreigners? Yes, though limited. Some Mexican banks and private lenders offer financing to foreigners, often with higher interest rates and a larger down payment than for locals. Additionally, some private residential developers and real estate companies offer their own in-house financing options, typically requiring a down payment followed by fixed monthly payments. These arrangements can vary widely, so it’s important to review terms carefully and work with a real estate advisor.

8. Do I need residency status to buy property in Mexico? No. Foreigners can purchase property in Mexico without being residents. However, having temporary or permanent residency may make some processes smoother.

9. What legal protections exist for foreign property owners? Foreigners are protected under Mexican law and have the same rights as Mexican citizens in terms of property ownership through a fideicomiso or a corporation.

10. What are the best resources for foreigners investing in Mexican real estate?

• Instituto Nacional de Migración (INM): https://www.gob.mx/inm

• Secretaría de Relaciones Exteriores (SRE): https://www.gob.mx/sre

• Notary Public Directory: https://www.notariadomexicano.org.mx

• AMPI (Mexican Association of Real Estate Professionals): https://www.ampi.org

• Real estate legal firms (e.g., Dream Home Investments S.A. de C.V., MexLaw, Secure Title Riviera Maya)

• U.S. or Canadian consulates in Mexico