Buying Real Estate in Mexico: FAQ for Foreigners

Yes. Foreigners can purchase real estate anywhere in Mexico. In coastal zones (within 50 km of the sea) or border areas (within 100 km of a border), foreign buyers use a bank trust called a fideicomiso, which grants full ownership rights — the right to use, rent, sell, modify, and inherit the property. In interior cities like Mexico City, Guadalajara, or Mérida, foreigners can hold the deed directly in their name.

A fideicomiso is a bank trust where a Mexican bank (Banamex, BBVA, Santander, Scotiabank, among others) holds the legal title as trustee while you are the named beneficiary with full ownership rights. It is not a lease or rental arrangement. You need a fideicomiso only if you buy in a restricted coastal or border zone — this includes popular areas like Sisal, Los Cabos, Puerto Vallarta, and Tulum. The trust is renewable every 50 years with a simple procedure.

Setup costs typically range from $1,800 to $3,000 USD depending on the bank. Annual maintenance fees run between $500 and $800 USD per year. These costs are separate from the property purchase price and closing costs. When budgeting, we recommend factoring in $4,000–5,000 USD for the first year (setup + first annual fee).

Closing costs in Mexico typically add 5–8% on top of the purchase price. The main components are: ISAI acquisition tax (2–4% of the cadastral value), notary fees (1–2% of the price), SRE permit for foreigners (~$15,000 MXN), fideicomiso setup fee if applicable, and registry fees. Your notary will give you a closing cost estimate before you sign the purchase agreement.

With complete documentation, the process from accepted offer to key handover takes 8–12 weeks. If there are title issues, a fideicomiso with mortgage financing is involved, or the property has ejidal land complications, it can extend to 16 weeks. Cash purchases with clean title typically close on the faster end of that range.

You will need: a valid passport, proof of address (utility bill or bank statement), source of funds documentation if the amount triggers AML requirements, and a notarized power of attorney if you cannot be present at closing. If using a fideicomiso, the bank will request additional KYC (Know Your Customer) documents. Your real estate attorney and notary will guide you through the full checklist.

Ejidal land is communally held land governed by Mexico's agrarian reform system. It cannot be sold or held under a fideicomiso until it goes through a formal privatization process (dominio pleno). In coastal Yucatán, some beachfront parcels near Sisal are ejidal. We strongly recommend buying only properties with clear private title or those where dominio pleno has been completed and verified by a notary. Never skip a title search.

ZOFEMAT (Zona Federal Marítimo Terrestre) is the federally owned strip along Mexico's coastline — 20 meters from the average high-tide line. No one can own this strip; beachfront homes "front" ZOFEMAT but the property line starts behind it. Legitimate beachfront properties have a ZOFEMAT concession for private access across the federal strip. Always confirm the property's survey and ZOFEMAT status before buying.

Yes. Foreign owners with a fideicomiso have the same rental rights as Mexican nationals with a deed. You can list on Airbnb, VRBO, or any platform. The key tax consideration: rental income earned in Mexico is subject to Mexican income tax (ISR), and depending on your home country, you may also need to declare it there. Consult a cross-border tax advisor. Yucatán coastal properties, especially near Sisal, have shown solid short-term rental demand as tourism grows.

No. In the Mexican real estate market, seller's commission (typically 3–6% of the sale price) is paid by the seller. As a buyer working with Mexico Living, you do not pay an additional buyer's commission on top of the agreed price. Your only out-of-pocket costs beyond the purchase price are closing costs (notary, ISAI, fideicomiso setup) as described above.

Sisal is a fishing village on the Yucatán coast, 45 minutes north of Mérida. It offers beachfront and near-beach properties at a fraction of the cost of Tulum or Los Cabos, with Mérida's world-class infrastructure — healthcare, international airport, restaurants — nearby. The Yucatán coast (Sisal, Chuburná, Chicxulub) has seen consistent appreciation driven by Mérida's growth as one of Mexico's most liveable cities. It attracts retirees, remote workers, and investors seeking early-mover positioning in an undervalued coastal market.

The first step is a free 30-minute qualification call. We review your budget, goals, and ideal property type (beachfront, near-beach, Mérida, or another destination), and determine whether a fideicomiso applies. You can schedule directly from the contact page or message us on WhatsApp. No commitment required.