Buying Property in Mexico as a Foreigner: Fideicomiso, Taxes and Closing Costs
Updated Fri, 16 October 2026
Estimate closing costs for your purchase →Foreigners can own homes in Mexico, and many do. How you hold the property depends on where it is, and the costs on top of the price depend on the municipality.
The restricted zone
Article 27 of the Mexican Constitution stops foreigners holding direct title to land within 50 km of a coast or 100 km of a border. That covers almost every beach town: Cancún, Playa del Carmen, Tulum, Puerto Vallarta, Los Cabos, La Paz, Mazatlán and all of the Baja California peninsula.
Inland, in places like San Miguel de Allende, Guadalajara, Lake Chapala, Querétaro, Oaxaca and Mexico City, you can hold title in your own name. Mérida is borderline: the city centre is about 35 km from the coast, and sources disagree, so ask the notary about the exact property.
Check a town or a distance with the restricted zone checker.
The bank trust (fideicomiso)
Inside the zone you buy through a fideicomiso, a trust where a Mexican bank holds title and you are the beneficiary. You can live in the home, rent it out, sell it and name who inherits it. The trust lasts up to 50 years and can be renewed.
It costs:
- A Foreign Ministry (SRE) permit: MXN 21,650 in 2026.
- A bank set-up fee: independent guides quote about USD 500 to 2,500.
- An annual bank fee: about USD 500 to 900 a year.
Acquisition tax (ISAI)
Every buyer pays a one-off acquisition tax to the municipality. The rate is set locally and is charged on the higher of the price and the official valuation. Examples for 2026:
| Area | Rate |
|---|---|
| San Miguel de Allende | 2% to 4% by price band |
| Puerto Vallarta | 2.65% to 3.55% by price band |
| Lake Chapala / Ajijic | 2.5% to 3% by price band |
| Cancún | 3% |
| Nuevo Vallarta, Bucerías, Sayulita (Bahía de Banderas) | 2% |
| Los Cabos | 3% (from press reports) |
Other closing costs
- Notary fees: around 1% to 1.5% of the price. In Mexico the notary is a senior lawyer appointed by the state who checks title, calculates taxes and registers the sale.
- Appraisal (avalúo): around USD 500 to 1,500.
- Registry and certificates: a few hundred dollars.
All told, independent guides put closing costs at about 5% to 8% of the price in coastal areas. Ask for a written quote from the notary before you sign the offer.
Before you buy
- Choose the notary yourself; do not leave it to the seller’s agent.
- Ask the notary for a title search and a certificate that there are no debts on the property, including property tax (predial) and water.
- If you are buying on ejido (communal) land, stop and get specialist advice: it cannot be sold to foreigners in the usual way.
Add up the costs for your purchase with the property closing cost calculator.
Estimate closing costs for your purchase →This guide is general information, not legal or tax advice. Rules change, so confirm with the INM, the SAT, a notary or another professional.