Mexico is a country full of charm, with a rich culture and history that in recent years has become a popular destination for foreigners wishing to purchase property. Whether it is a house, an apartment or land, buying property in Mexico as a foreigner is a rewarding experience and investment decision. And for this it is important to know the legal requirements and the most important financial aspects involved in this process. The following is a complete guide on how foreigners can buy property in Mexico so you can take advantage of the opportunities offered by the real estate market in 2023.
What does a foreigner need to buy a property in Mexico?
Undoubtedly, when buying a property in Mexico as a foreigner you must take into account the legal aspects involved in the purchase. First, you should be aware of the “Calvo Clause”; this is an international law doctrine that guarantees equal treatment for foreigners under the laws of the host country and limits their ability to invoke the protection of their home government in case of disputes. In the context of Mexico and the acquisition of properties in restricted zones, this law may be beneficial to foreigners. By ensuring equal treatment, the Calvo Clause provides foreign buyers with a sound legal basis when entering into real estate transactions in Mexico.
However, the Calvo Clause establishes that foreigners may not purchase parcels of land or ejido land, or any property located in the restricted zone. The restricted zone comprises a 100 km strip along Mexico’s borders and 50 km wide with respect to the coasts and beaches.
In this scenario, and through a trust, it is possible for a foreign person to purchase a property located within the restricted zone. In simple terms, the trust allows another person to manage your property for a determined period of time and according to pre-established conditions. With different types of trusts regulated by the General Law of Securities and Credit Operations, their main objective is to facilitate the purchase and management of properties, avoid potential conflicts and be part of new businesses.
The trustees of credit institutions must file the corresponding applications with the Ministry of Foreign Affairs (SRE) to obtain the necessary permits.
Remember that foreigners can buy a house in Mexico, as long as a prior permit is obtained that clearly establishes the property as a trust and not a fully owned property of the foreigner.
What are the documents and requirements that a foreigner needs to buy a property in Mexico?
- Valid passport: To begin the process, you will need a valid passport that identifies you as a foreign citizen.
- Permanent or temporary residency: If you do not have a Mexican residency visa, it is necessary to obtain one in order to purchase a property. This involves making the corresponding arrangements at the Mexican Embassy or Consulate in your country of origin.
- Proof of income: the last 3 payroll receipts with a minimum amount of $15,000 mxn per month.
- Have credit history in Mexico: you can present credit history from another country if you do not have credit history in Mexico.
- Bank account in Mexico: It is important to open a bank account in Mexico to carry out the financial transactions related to the purchase of the property.
- Title Search: Before finalizing the purchase, it is essential to conduct a thorough title search to ensure that there are no legal problems or liens on the property.
- Appraisal of the property: It is advisable to obtain a professional appraisal of the property to determine its real value and make sure that the purchase price is fair.
- 360° support: Hiring the services of a team specialized in Mexican companies is essential to ensure that all legal aspects of the purchase are properly complied with.
What are the taxes for buying a property in Mexico as a foreigner?
The seller is responsible for covering the ISR (Income Tax) and declaring the sale of the property. As for the foreign buyer, the taxes to be paid do not present significant changes. You will have to comply with ISAI (Impuesto Sobre Adquisición de Inmuebles) and IVA (Impuesto al Valor Agregado) payments. In addition to the taxes, it is important that you consider notary fees, deed expenses, fees and rights. Our team of experts can advise you every step of the way to avoid setbacks and surprises in your process. Contact us at and find out how to do it.
What are the best destinations to buy property in Mexico as a foreigner?
We recently published an article dedicated to this topic; Top 7 places to live in Mexico as a foreigner Visit it and get all the detailed information about each destination.
- Polanco (Mexico City): Desired destination for its quality of life, safety, cultural offerings and proximity to financial centers.
- Colonias Roma and Condesa (Mexico City): Bohemian zone with a cosmopolitan lifestyle, varied cultural offerings and high adoption by foreigners.
- Tulum: Coastal paradise with pristine beaches, tranquil lifestyle, excellent gastronomy and quality real estate projects.
- Zihuatanejo: Charming destination on the Pacific coast, famous for its natural environment, warm climate and welcoming community.
- Merida: Capital of Yucatan with colonial architecture, rich cultural heritage, low cost of living and strategic location near beaches and Mayan archaeological sites.
- Oaxaca: City with rich culture, history and traditions, declared a World Heritage Site by UNESCO, with a charming historic center.
- Puerto Vallarta: A coastal city on the Bay of Banderas, with natural beauty, warm weather and a relaxed atmosphere. It offers a wide variety of restaurants, shopping and entertainment options.
Buying property in Mexico as a foreigner can be a rewarding experience, but it is important to be aware of the legal, financial and immigration issues involved in the process. At Nolab we have a group of specialists ready to help you throughout your shopping experience. Contact us and find out how to achieve it.
