Buying in Mexico

Foreign nationals can own residential property in Mexico's coastal zones through a fideicomiso — a bank trust. It sounds complex, but it's simply different. Not a loophole, not an exception. It's the standard legal mechanism used by every branded residence developer in the country.

A Mexican bank holds the trust on your behalf, typically for renewable 50-year terms. You retain full ownership rights: sell, lease, renovate, pass it to your heirs. The trust is the vehicle, not the limitation.

What seems unfamiliar at first becomes straightforward once you understand the framework. And every developer in our guide has navigated this process hundreds of times.

From reservation to closing, expect 60 to 120 days. Not instantaneous, but not bureaucratic infinity either.

The typical sequence: a reservation agreement with a deposit (usually 5-10%), followed by a due diligence period of 30 to 60 days. Then comes the promissory agreement, the establishment of the fideicomiso, and final closing before a Mexican notary public.

The notario is a government-appointed legal officer — not the same as a notary in the US. They verify the transaction, ensure tax compliance, and register the property. Think of them as the neutral referee that makes everything official.

Expect approximately 5-8% of the purchase price in transaction costs. This is predictable, not surprising.

The breakdown includes the acquisition tax (ISAI, typically 2-4% depending on the state), notary fees (1-2%), fideicomiso establishment ($1,500-3,000 USD), an appraisal, and miscellaneous registration costs. Annual trust maintenance runs $500-1,500 USD per year.

One thing that often surprises buyers in a good way: property taxes in Mexico are remarkably low compared to the US or Europe. Typically 0.1-0.3% of assessed value annually. Your annual predial might be less than a month's HOA in Miami.

Mexico has tax treaties with most countries to avoid double taxation. Rental income is declarable, capital gains exist but are manageable, and the structure is more straightforward than most people expect.

If you're a US citizen, you'll report your Mexican property on your US tax return, but treaty provisions generally prevent being taxed twice on the same income. Similar frameworks exist for Canadian and European buyers.

The important thing: work with a cross-border tax advisor who understands both jurisdictions. This isn't the place to improvise. The good news is that every developer in our guide can connect you with specialists who do this daily.

Most branded residences offer optional rental programs managed by the hotel operator. You earn income when you're not using the property, and the hotel handles everything — marketing, operations, maintenance.

Returns vary significantly by property, location, and season. Expect net yields of 3-6% in established markets, with newer developments sometimes projecting higher. The real value, though, is often in appreciation and lifestyle rather than pure rental yield.

A word of perspective: if you're buying primarily for investment returns, there are simpler vehicles. If you're buying for a way of life that also generates income when you're not there — that's where branded residences make sense.

Understanding the ownership framework isn't about becoming a legal expert. It's about having enough context to ask the right questions and recognize the right answers.

Every property in our guide has been through this process with dozens — sometimes hundreds — of international buyers. The path is well-worn. What makes the difference is having the right advisors and the right expectations.

We're not lawyers, and this isn't legal advice. It's editorial perspective from years of observing how international buyers navigate the Mexican luxury market. The specifics of your situation deserve professional counsel.