Acquiring Real Estate Property in Mexico as a Foreigner
In recent years, investors from around the world have found attractive opportunities to acquire real estate in Mexico. While the Mexican real estate market is not exactly a bargain, it often offers an appealing combination for foreign investors: purchase prices are typically negotiated in U.S. dollars, while many maintenance and operating costs are paid in Mexican pesos, which can translate into a significant financial advantage.
The real estate industry in Mexico is regulated at the federal level; however, acquiring a property also involves complying with Mexican laws at the state and municipal levels. A typical real estate transaction involves several participants, such as a notary public, tax authorities, appraisers, and the corresponding Public Registry.
Restrictions applicable to foreigners
The Mexican Constitution and its related laws establish certain limitations and formalities that foreigners must comply when intending to acquire real estate in Mexico. In this regard, it is important to note that, geographically, our territory is divided into two zones: the “Restricted Zone” and the “Permitted Zone”.
The “Restricted Zone” comprises a strip of national territory extending up to one hundred kilometers along Mexico’s international borders, and fifty kilometers along Mexico’s coastlines, whereas the “Permitted Zone” consists of the remaining territory located outside the “Restricted Zone”. Pursuant to Mexican law, foreign individuals are not allowed to acquire property directly in the “Restricted Zone”.
However, foreign investors can acquire real estate in the “Restricted Zone” indirectly, by using different investment vehicles, like trusts or Mexican companies, designed for such purpose, but within the limit of certain conditions, like obtaining a permit from the Mexican Ministry of Foreign Affairs (Secretaría de Relaciones Exteriores, “SRE”).
This SRE permit is processed through its electronic portal and is usually granted in less than 15 (fifteen) business days from the date in which the application is submitted.
Acquisition through a trust
When the acquisition of the property in the “Restricted Zone” is for housing purposes, foreigners may establish a trust after obtaining a permit from the SRE for such purposes.
A trust is a contract through which the owner of the property transfers the property to a Mexican financial institution that will act as the trustee. This way, the foreigner is involved as beneficiary of the trust, and in such capacity he can use, enjoy and, in such case, dispose of the property as an indirect owner. Generally speaking, under the trust agreement, the foreigner holds the title of beneficiary of the property, while the trustee holds legal title thereto. This type of trust has a term of up to 50 (fifty) years and may be renewed for equal periods.
Even though the trustee maintains legal title to the property, it cannot limit how the beneficiary (in this case, the foreigner) uses the property, nor may it dispose of, encumber, or sell the property without the beneficiary’s prior written consent. Additionally, the beneficiary may transfer its beneficiary rights in the property to another foreigner, by means of an assignment agreement of the trust rights. On the other hand, if the beneficiary wishes to transfer its beneficiary rights to a Mexican national, the trust must then be terminated.
Acquisition through a Mexican company
When the acquisition is for commercial or investment purposes, foreigners must be incorporated as a Mexican company, which must include a clause for the admission of foreigners as shareholders, whether they are natural or legal persons.
Through the Mexican company, the foreigner may acquire ownership of real estate in the “Restricted Zone” after obtaining permission from the SRE. It is important to consider that the incorporation and maintenance of a Mexican company involves a reasonable amount of organization and operating expenses, as well as the fulfillment of various annual or periodic obligations imposed by Mexican law for all commercial companies incorporated in the country, regardless of the origin of their investment.
Other formalities
Both the acquisition of real estate located in the “Permitted Zone” and the indirect acquisition of real estate in the “Restricted Zone” through a trust or a Mexican company require the execution of a purchase and sale agreement between the seller and the buyer. Such agreement must be signed before a Mexican notary public, who will then issue and execute the corresponding public deed setting forth the property rights. Subsequently, the public deed must be recorded with the corresponding Public Registry of Property of the nearest city or the city in which the property is located. These two steps form a process that guarantees the validity of property rights against third parties, whether domestic or foreign.
As of 2022, Mexican public notaries are required to issue a digital tax receipt (CFDI) with the specific addendum for real estate transactions. Likewise, buyers must have a Federal Taxpayer Registry number (RFC), including foreign buyers, make payment of the transaction through a bank transfer or cashier’s check, and comply with the applicable tax requirements for deductions or tax credits.
Similarly, before closing a real estate transaction, it is essential to verify the property’s registration status with the Public Registry of Property, as well as its updated cadastral status. This helps confirm that the seller holds a valid title to the property and that there are no existing liens or pending legal proceedings.
Lastly, other applicable taxes and fees must be paid in a real estate purchase and sale transaction by both the seller and the buyer, such as income tax, value-added tax, real estate acquisition tax, registration fees, appraiser fees, notary fees, advisory fees, and any other local taxes that may be applicable in the relevant municipality.
The acquisition of real estate in Mexico by foreigners is perfectly legal when the appropriate mechanisms are used. However, these types of transactions require clear information, proper planning, and strict compliance with applicable regulations to ensure that the transaction is valid and provides legal certainty.
February 2026.
This article was originally written in 2018 by Verónica Cantú. and updated and supplemented in February 2026. Please send any questions or comments to info@jata.mx. The author is a Partner at JATA - J.A. Treviño Abogados and can be reached at vcantu@jata.mx. JATA is a Mexican law firm with offices in Monterrey, N.L., Mexico, and Houston, Texas.
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