Buying a vacation home or investment property in Mexico should be an exciting and stress-free experience. The Riviera Maya Real Estate team is here to help guide you through the entire process. Our laid-back approach means there will be no pressure on you to buy until you find the perfect place, and our primary goal is to make you happy.
Yes! Buying real estate in Mexico as a foreigner is a straightforward and secure process designed to protect you as the buyer.
As a foreigner buying property within 50 kilometers (about 31 miles) from the coast and 100 kilometers (about 62 miles) from international borders, you have two options. You can buy via a Fideicomiso (Bank Trust) or with a Mexican corporation.
A fideicomiso is similar to a living trust, where the bank acts as a trustee. You choose the bank and maintain complete control over the trust, including the ability to have beneficiaries and sell your property at any time. A fideicomiso is not a lease.
The fideicomiso, when first created, is established for a period of 50 years and can be renewed at any time, with the guarantee remaining in effect forever.
A fideicomiso has a yearly fee payable to the bank.
Absolutely! If you are looking to buy multiple properties as income generators or buy and sell land, some investors choose to do so through a Mexican corporation, and we can help guide you through this process.
Real Estate Agent: Your agent is the first point of contact when looking to buy, and while their responsibilities are very similar to those of a Real Estate Agent back home, there are slight differences. Our team of experienced and qualified agents is here to guide you through this exciting process.
Buyer’s Attorney: We always recommend our clients use a trusted attorney when purchasing real estate in Mexico. It is the attorney’s job to represent and protect you as the buyer, and your attorney will be responsible for drafting or reviewing all contracts involved with your purchase. We only work with trusted firms with whom we have a longstanding relationship.
Bank (when buying via Fideicomiso): The bank you choose to hold your trust will guarantee that the closing is both appropriate and legal. They will review all documents involved before the closing, and their name and information will be included on the property deed alongside those of the buyers. The bank trustee is prohibited by Mexican law from transferring ownership of the property, changing beneficiaries, or modifying the trust without written instructions from the buyer. The bank you choose, which reviews all documentation and looks out for your interests as the buyer, is just another way to protect your interests.
Notary: The notary is responsible for various tasks, including the authentication of legal documents, and is involved in all real estate transactions in Mexico. Any real estate transaction not approved by a notary and duly recorded in the Public Registry is considered invalid and not enforceable.
Closing costs, which include taxes, notary fees, attorneys’ fees, fideicomiso, escrow, and government fees, will typically cost between 5% and 9% of the property’s value. The higher the value of the property, normally, the lower the closing costs as a percentage of the property value.
Low property taxes are one of the many significant aspects of buying in Mexico. You can expect to pay approximately .1% of the property’s value every year. If your property is worth $250,000 USD, then your yearly taxes will be around $250 USD. The government loves it when people pay early. Should you pay your taxes in December of the year prior (December 2019 for the 2020 tax year), you can save approximately 25%.
