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How to choose the right property

Property types


Depending on where you choose to buy the type of properties avaliable to pick from will vary. In the major cities, look for apartments and townhouses- you may struggle to find land or freestanding homes. By the beach, however, you might find larger villas, land parcels and plenty of apartments, many of which can be in residential hotels.

Condition of the property


Technically, there are no official building standards for property in Mexico. If you’re buying a prefabricated home, you may want to hire someone to do a thorough inspection before you settle on your new place.

What are the steps to buying a property as a foreigner?


While the steps for buying a home in Mexico can seem pretty simple, you may want to protect yourself from the unknow by using the proper and recommended services. While they vary from transaction to transaction, the process should be something like the following:


  1. Investigate a Mortgage or, if you’re in the restricted zone, a bank trust or fideicomiso
  2. Engage a real estate agent
  3. Find your property and make an offer
  4. Have a sale contract written by a notary
  5. Finalize your fideicomiso or mortgage with the bank.
  6. Sign the contract
  7. Pay taxes


What are the legal requirements to buying a property in Mexico?


Buying property in Mexico will require you to engage a notary to draw up a sale contract, but otherwise the legal requirements are pretty clear.

You’ll want to:

  • Look into how you will hold the title. If it’s in the restricted zone, the title will be held by a Mexican Bank in the form of a fideicomiso. If you’re outside of the restricted zone, you can hold the title in your own name.
  • Have all of your contracts translated to English. Most firms will take care of this for you.
  • Thoroughly read your regimen de condominio, which outlines owners rights and restrictions, as well as any obligations.

How do I get a bank loan/mortgage?


To get a mortgage, you can go to any major Mexican bank or a bank in your home country.

You don’t need to be a Mexican resident or even have a visa to buy property in Mexico.

If you need a fideicomiso to make your purchase, you’ll also find a wealth of options- many of the larger international banks that work in Mexico will help you get a trust, as will local Mexican banks.

If you’re planning to pay your down payment from a foreign bank account, you’ll want to keep an eye on the exchange rate and associated fees from your bank to make sure you’re not going way over budget.



What kind of taxes and fees will I need to pay?


Unfortunately it can be a little hard to pin down exactly what level of fees you’ll pay due to the fact that fee vary by what state and area you will be purchasing in, but some good ones to look out for include:

  • Agency/Agent fees, which are variable by region generally 6-8% plus VAT
  • Notary/Lawyer fees, which are variable but are also taxed at 16% VAT
  • Acquisition Tax, between .2 and 4.5%
  • Registration Fee, which can be anywhere from .02 to 1.8%
  • Title insurance, at roughly .5%

It can be a bit of a process to purchase, but once completed, you will find that it was well worth it. With a relatively small budget, you can enjoy a beautiful beachfront villa or a modern urban apartment. As far as investment in Mexico is concerned, there’s never been a better time as the nation’s citizens and a multitude of tourists rush to enjoy the Mexican seaside. Good luck with your property purchase!