Can a foreigner buy real estate in Mexico? | The Complete 2026 Guide

Short answer? Yes. A foreigner can generally acquire direct ownership of real estate in Mexico, but only outside “The Restricted Zone“.

Under Article 27, Section I of the Mexican Constitution, foreigners cannot acquire direct ownership of land and waters located within 100 kilometers (approximately 62 miles) of Mexico’s international borders or within 50 kilometers (approximately 31 miles) of its beaches.

This area is commonly referred to as the “Restricted Zone” (Zona Restringida).

So… what happens when a foreigner wants to purchase a property within this area?

This is where the Fideicomiso, or Mexican Trust, comes into play.

Let’s dive in!

What is exactly a Fideicomiso?

A Fideicomiso is a legal arrangement under which one person, known as the Fideicomitente (Trustor or Settlor), transfers ownership of an asset or right to another party, known as the Fiduciario (Trustee), to hold and manage it for the benefit of a third party, known as the Fideicomisario (Beneficiary).

The beneficiary can be a different person or, depending on the structure, the same person who established the Trust / Fideicomiso.

In a real estate Fideicomiso/Trust, the bank or authorized financial institution acts as the Trustee, while the foreign purchaser is the Trustor and Beneficiary (Fideicomitente y Fideicomisario).

Fiduciaries are authorized financial institutions. In the case of real estate Trusts in Mexico, banks are commonly used as Fiduciaries.

These institutions operate within a highly regulated financial system and are subject to oversight by Mexican authorities and regulations involving institutions such as:

• The National Banking and Securities Commission (CNBV);
• The Secretariat of Finance and Public Credit (SHCP);
• Banco de México (Banxico);
• The Financial Intelligence Unit (UIF); and
• The Tax Administration Service (SAT).

This regulatory framework provides an important level of security and oversight to the Fideicomiso structure.

The Fideicomiso itself is primarily regulated by the General Law of Negotiable Instruments and Credit Operations (LGTOC), together with other applicable financial, tax, anti-money-laundering and banking regulations.

Both individuals and legal entities, whether Mexican or foreign, may generally act as Fideicomitentes and/or Fideicomisarios, depending on the specific structure and purpose of the trust.

Do I need Mexican residency?

No. You do not need Mexican residency to purchase real estate in Mexico through
a Fideicomiso.

How much does it cost?

Cost varies depending on the finantial institution / bank, the property and the
transaction. Typically, there is an initial setup fee, plus annual bank trustee fees,
in addition to notary fees, government fees and other closing costs. Once a
property has been selected, we will – as part of our services –
provide you with an estimate for it.

What taxes will I pay?

Main taxes and costs may include Acquisition Tax (ISAI) when purchasing the
property, annual property tax (Predial), and potentially VAT (IVA) and Income
Tax (ISR) depending on the use of the property.
The cost of the authorization granted by the Secretariat of Foreign Affairs for this type of operation must also
be considered.

Can foreigners get a mortgage?

Yes. Foreigners can obtain mortgage financing in Mexico, although requirements,
interest rates, loan-to-value ratios and eligibility vary between lenders. Financing
may also be available through certain Mexican banks and specialized lenders for
foreign buyers.

Can I rent my property?

Yes. A foreign owner can rent a property held through a Fideicomiso. Rental
income generated from property located in Mexico it may be subject to Mexican tax
rules, and the owner must comply with the applicable tax and reporting obligations.

To wrap it up, a Fideicomiso allows foreigners to own and enjoy residential real estate in
Mexico, including high-end properties in some of the country’s most desirable coastal
destinations… In my opinion, Cancun is a marvelous city to live in… International, very well connected with major airports around the world, featuring stunning natural beauty, great weather, culture, and lots of fun things to do!

I hope you find this article useful! We still have lots of interesting topics coming up, so stay tuned!
If you have any questions or comments about Fideicomisos, real estate in Mexico, or the process of buying / selling a property as a foreigner, feel free to reach out to us.

We’ll be happy to hear from you!

Until next time,
Gilberto Esponda