Foreigners Buying Property in Mexico: Legal Guide 2026

Mexico welcomes foreign buyers, but the legal framework has specific rules you must understand first.

The Restricted Zone

Mexican law prohibits foreigners from holding direct title to land within 50 km of any coastline or 100 km of any border. This covers virtually all beach destinations.

The solution: fideicomiso (bank trust). A Mexican bank holds title as trustee; you hold all beneficial rights — use, lease, improve, sell, inherit. Cost: $500–800 USD setup + ~$700/year. Duration: 50 years, auto-renewable.

Outside the Restricted Zone

In Mérida, Mexico City, Guadalajara — foreigners hold direct title (escritura), just like a Mexican citizen. No trust required.

The Notario System

All closings go through a government-appointed Notario Público who verifies title, calculates acquisition tax (ISAI: 2–4%), and registers the transaction. Hire your own lawyer to review docs before signing on any purchase over $100K USD.

Key Legal Checks

Folio registral — confirmed entry in Public Registry
Libertad de gravamen — no liens
Uso de suelo — zoning allows intended use
ZOFEMAT — federal coastal strip (20m from high tide); requires concession
Ejido land — communal land; conversion to private title takes 2–5 years

Taxes

Acquisition (ISAI): 2–4% of declared value
Capital gains on sale: 25% gross or 35% net
Annual predial: very low (0.1–0.3% of cadastral value)

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