Buying Land in Mexico: A 2025 Guide for Foreigners

Yes, Americans can own land in Mexico, but with restrictions. In restricted zones (within 100 km of borders and 50 km of coastlines), ownership requires a fideicomiso (bank trust) or a Mexican corporation. Outside these zones, Americans can own land outright. Navigating the legal and financial aspects properly ensures a secure investment.

Enlist the help of local agents with knowledge of the market and insight into the best places to buy. Contact Mycasa Real Estate and one of their licensed agents will hold your hand every step of the way.

Theyre experts in the Riviera Maya and are landowners themselves with intimate knowledge of all the ins & outs to purchasing your first piece of paradise. See our land listings HERE.

Table of Contents

• Can Americans Legally Own Land in Mexico?
• Understanding Restricted Zones
• What is a Fideicomiso?
• Buying Property Outside Restricted Zones
• The Role Of Real Estate Agents
• Legal Requirements for Purchasing Property
• Financial Considerations
• Navigating the Buying Process
• Post-Purchase Responsibilities
• Common Risks and How to Avoid Them
• Buying Ejido Land
• Summary
• Frequently Asked Questions

Can Americans Legally Own Land in Mexico?

Yes, U.S. citizens can own property in Mexico. However, the Mexican Constitution restricts direct foreign ownership within restricted zones (100 km from borders, 50 km from coastlines). Despite these limitations, Americans can buy property through two legal structures:

1. Fideicomiso (Bank Trust): Grants full ownership rights while a bank holds the title.

2. Mexican Corporation: Suitable for commercial properties.

For properties outside restricted zones, Americans can own land outright, simplifying the buying process.

Understanding Restricted Zones

Restricted zones exist to protect Mexican sovereignty and national security. However, Americans can still buy property in these areas using a fideicomiso or a Mexican corporation.

Key Facts About Restricted Zones:

• 
  

• Defined as 100 km from borders and 50 km from coastlines.

• Zona Federal Maritimo Terrestre laws apply to beachfront properties.

• Requires additional legal steps to ensure compliance.

The Riviera Maya has many land options which fall into this restricted zone. Our legal teams set up the Fideicomiso trust during the acquisition process so there are no extra steps you need to take on your own. 

What is a Fideicomiso?

A fideicomiso is a bank trust that allows foreigners to own land in restricted zones. The trustee bank holds the title, but the buyer retains full ownership rights, including the ability to use, sell, or rent the property.

Setting Up a Fideicomiso:

1. Obtain authorization from the Mexican Secretary of Foreign Affairs.

2. Sign a deed with a Mexican Notary.

3. Pay trustee fees and annual maintenance costs.

Buying Property Outside Restricted Zones

Outside restricted zones, Americans can buy land outright without requiring a fideicomiso or corporation.

Benefits of Buying Outside Restricted Zones:

• Simplified legal process

• Lower costs (no trustee or legal fees)

• Greater ownership security

The Role of Real Estate Agents

A qualified real estate agent helps buyers navigate the market, ensuring compliance with local laws and securing the best deal.

How to Find a Reliable Agent:

• Choose agents with a strong local reputation.

• Verify experience in foreign transactions.

• Request references from past clients.

Legal Requirements for Purchasing Property

Key Legal Steps:

1. Engage a Mexican lawyer to verify the title and contract.

2. Hire a Notario Publico for due diligence and contract certification.

3. Conduct a title search to check for liens or disputes.

4. 
   

Documents Needed:

• Passport and proof of income

• Purchase-sale agreement (written in Spanish)

• Property appraisal and registration

Financial Considerations

Buying property in Mexico involves various financial obligations.

Costs to Consider:

• Down Payment: Typically 20-30%

• Property Taxes: Lower than in the U.S.

• Closing Costs: Usually 8-10% of the sale price

• Fideicomiso Fees: If applicable, annual maintenance costs apply

Financing Options for Foreign Buyers:

• Mexican Banks (e.g., BBVA, Santander, HSBC) offer mortgages for clients that can demonstrate income & credit in Mexico

• U.S. banks and private lenders provide cross-border loans.

• Developer financing is available for new builds.

Navigating the Buying Process

Key Steps:

1. Find the Right Property: Use online listings or a trusted agent.

2. Negotiate Price & Terms: Secure a fair deal.

3. Sign an Initial Sales Agreement: This outlines terms and the final price.

4. Complete Due Diligence: Engage a lawyer and notary to verify property status.

5. Finalize the Purchase: Pay closing costs and sign the final deed.

6. 
   

Post-Purchase Responsibilities

Owning property in Mexico comes with ongoing responsibilities, including:

• Regular property maintenance

• Property tax payments

• Complying with homeowner association (HOA) regulations (if applicable)

• Hiring a property manager for absentee owners

• 
  

Common Risks and How to Avoid Them

Potential Risks:

• Title Issues: Conduct a thorough title search to verify legal ownership.

• Scams: Only work with licensed agents and lawyers.

• Legal Disputes: Understand local property laws and environmental regulations.

• Natural Disasters: Consider insurance for hurricanes, earthquakes, and floods.

Buying Ejido Land

Many foreigners come to Mexico and find incredible land deals that seem too good to be true. Typically these deals involve land which is classified as "ejidal" or communal agricultural lands.

If you're considering buying land that was previously classified as ejido land, it's essential to understand the unique challenges and risks involved. But don't worry – we're here to guide you through the process and explain why hiring a lawyer is your best move.

What is Ejido Land?

First, let's clear up what ejido land is. In Mexico, ejido lands were communal agricultural lands given to local communities for farming and livelihood. While these lands have now been allowed to be sold and bought privately, the transition from communal to private ownership involves a legal process called "regularization." This process ensures that the land is legally recognized as private property.

The Risks Involved

Incomplete Regularization If the regularization process isn't fully completed, the land might still have communal claims. This can lead to disputes and legal battles down the road. Title Issues Proper documentation is crucial. Without a clear title, proving ownership can become problematic, affecting your ability to sell, develop, or even use the land as you wish. Historical Claims Sometimes, former ejido members or their descendants might challenge the sale, claiming rights to the land based on historical use.

Why You Need a Lawyer

Navigating the legal intricacies of purchasing former ejido land can be daunting. Here's how a qualified real estate lawyer can make a difference:

Expert Document Review

Lawyers will meticulously examine all documents to ensure the regularization process is complete and the title is clear.

Legal Assurance

They can verify that there are no lingering claims or disputes over the property. Peace of Mind With a lawyer by your side, you can proceed with confidence, knowing that your investment is secure. Buying former ejido land can be a fantastic opportunity, but it's not without its challenges. By hiring an experienced real estate attorney, you can navigate these potential pitfalls with ease and ensure that your investment is protected.

Javier Contreras Nieto

CEO | Chief Attorney

Lighthouse Real Estate & Legal Services

Summary

Americans can legally own property in Mexico with the right approach. Understanding restricted zones, fideicomiso structures, legal requirements, and financial considerations is essential for a smooth transaction. By hiring experts, conducting due diligence, and planning financially, buyers can confidently invest in Mexican real estate while ensuring compliance with local laws.

Frequently Asked Questions

Can Americans legally own land in Mexico?

Yes, Americans can legally own land in Mexico, though they must navigate specific legal regulations, especially in restricted zones near borders and coastlines. It's essential to understand these legal considerations before making a property purchase.

What is a fideicomiso, and why do I need one?

A fideicomiso is a trust mechanism that enables foreign buyers to secure property ownership in restricted zones of Mexico by having a Mexican bank hold the title. It is essential for complying with local regulations and ensuring legal property rights.

What are the closing costs when buying property in Mexico?

Closing costs in Mexico generally range from 5% to 10% of the property's sale price, encompassing various fees and taxes associated with the transaction. It is essential to budget for these costs when purchasing property.

Do I need a Mexican lawyer to buy property in Mexico?

Yes, engaging a Mexican lawyer is highly recommended to navigate legal complexities and ensure compliance with local laws when purchasing property in Mexico.

How can I avoid common risks when buying property in Mexico?

To avoid common risks when buying property in Mexico, conduct thorough title searches and work with reputable professionals. Ensuring that all transactions are well-documented is essential to preventing legal issues and scams.

Updated 2/20/25