How to Buy Property in Mexico as a Foreigner – A Step-by-Step Guide

If you're from the U.S. or Canada and dreaming of buying beachfront property in Mexico, it’s entirely possible — but it requires the right legal structure. Here's how to do it safely and without surprises.

🌐 1. Understand the Restricted Zone

The Restricted Zone refers to land within 50 km (31 miles) of the coastline or 100 km (62 miles) of the borders. Foreigners cannot directly hold title to land in these zones. However, Mexico offers a legal workaround: a bank trust (fideicomiso) approved by the Constitution.

🔐 2. What Is a Fideicomiso and How Does It Work?

A fideicomiso is a 50-year renewable bank trust that allows foreigners to buy property in the Restricted Zone. A Mexican bank acts as trustee, holding legal title on your behalf. You are the beneficiary and retain full rights to use, rent, improve, sell, or inherit the property.

Key Benefits:

• You hold all ownership rights

• The bank only acts as a titleholder on paper

• The trust is renewable indefinitely

Learn more in our FAQs.

📝 3. Steps to Set Up a Fideicomiso

1. Find the property (confirm the seller has legal title)

2. Request a permit from the Mexican Foreign Affairs Ministry (SRE)

3. Open a fideicomiso with a Mexican bank (e.g., Banorte, Santander)

4. Sign with a public notary and register with the Public Registry of Property

5. Pay all taxes and fees (see below)

Need help? Schedule a consultation.

💵 4. Estimated Costs

• Trust setup fee: US$1,000–3,000

• Annual trust maintenance: US$500–1,000

• SRE permit: approx. US$1,600

• Notary, taxes & closing: ~1–2% of property value

We help you compare options and negotiate fees. Talk to our team.

📄 5. Who Does What?

• Bank (fiduciary): Holds the title, handles paperwork

• You (beneficiary): Full property rights

• Notary public: Oversees the transaction and ensures legality

All these steps are coordinated for you when you work with Milele.

✅ 6. Is It Safe?

Yes. The fideicomiso is fully constitutional and backed by Mexican law. It's the standard mechanism used by thousands of Americans and Canadians to own property in coastal Mexico.

Read what our clients say.

📊 7. Are There Alternatives?

Yes. If the property is for commercial use (e.g. hotel, rentals), you can set up a Mexican corporation to own it. But for personal, residential use, a fideicomiso is simpler and more secure.

🏃 Ready to Take the First Step?

Schedule a free consultation with the bilingual experts at Milele Mexico. We'll walk you through the legal, real estate, and logistical process so you can buy with confidence.

Milele Mexico

Luxury Coastal Property & Legal Advisory for Foreign Buyers

🌐www.milelemexico.com

📞WhatsApp +52 1 56 6514 8098

📩 Email: milelemexico@gmail.com

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