Buying Property in Mexico as a Foreigner: What You Need to Know (2026 Guid

If you’re considering moving to Mexico—or even just investing in a second home—you’ve probably asked yourself:
“Can foreigners actually buy property in Mexico?”

The short answer is yes. But there are some important details, especially if you’re buying near the coast (like in Los Cabos).

At ExPAT MX, we’ve helped many clients navigate this process—and as a Canadian who has personally purchased property in Mexico, I’ve gone through it myself. Here’s what you need to know.

Can Foreigners Own Property in Mexico?

Yes—foreigners can legally own property in Mexico.

However, if the property is located within the “restricted zone” (which includes:

• Within 50 km of the coastline

• Within 100 km of an international border

—you’ll need to purchase through a structure called a fideicomiso (bank trust).

What Is a Fideicomiso?

A fideicomiso is a bank trust that allows foreigners to purchase property in restricted zones while maintaining full control and rights.

Here’s how it works:

• A Mexican bank holds the title in trust on your behalf

• You are the beneficiary (you control the property)

• You can sell, rent, renovate, or pass it on to heirs

Think of it as a legal structure—not a limitation.

My Experience 

When I purchased property in Los Cabos, I went through the fideicomiso process myself. From start to finish, it was straightforward—as long as you have the right team in place.

What I found:

• The process is secure and well-established

• Everything is handled through a notario (public attorney)

• Once set up, it’s very hands-off

• You retain full control of your asset

Locking everything down through a fideicomiso gave me the confidence to invest—and it’s the same path most Americans and Canadians take when buying in coastal areas like Cabo or Cancun.

 Cash vs Financing

One of the biggest differences from the U.S. and Canada is financing.

Most foreign buyers:

• Purchase in cash, or

• Use financing from their home country (like a HELOC)

Why?

• Mexican banks typically don’t lend easily to non-residents

• Interest rates in Mexico are usually higher

That said, there are cross boarder mortgage companies that specialize in working with expats and foreign buyers. These lenders can help facilitate financing for property purchases in Mexico, especially in popular markets like Los Cabos.

However, you should expect higher interest rates and stricter terms compared to what you might find in the U.S. or Canada, so it’s important to factor that into your overall investment strategy.

If you’re planning to finance, it’s often smartest to explore options in your home country first, then compare against international lenders.

 Important Costs to Factor In

When buying property in Mexico, expect additional costs such as:

• Closing costs (~4–7%)

• Notary fees

• Trust setup + annual fideicomiso fee

• Property taxes (generally low compared to U.S./Canada)

 Restricted Zones = Opportunity

Most of the most desirable real estate in Mexico is inside the restricted zone:

• Los Cabos

• Puerto Vallarta

• Riviera Maya

These are exactly the areas where expats want to live—and where investment potential is highest.

 Buying for Investment (Short-Term Rentals)

Many buyers purchase property for rental income—but be careful:

• Regulations for short-term rentals (STRs) vary by city

• Some areas are tightening rules

• Property management is key if you’re not living there full-time

Always check local regulations before buying.

 Build the Right Team

This is where most people either succeed—or run into issues.

You’ll want:

• A trusted real estate agent

• A reputable notario

• A reliable property manager and accountant (if renting)

Having the right people in place makes the process smooth and stress-free.

 Final Thoughts

Buying property in Mexico as a foreigner is not only possible—it’s increasingly common among Canadians and Americans looking for lifestyle upgrades, investment opportunities, or a second home.

With the right structure (like a fideicomiso), the right planning, and the right guidance, it can be a very secure and rewarding move.

Thinking About Buying in Mexico?

At ExPAT MX, we help guide you through the full process—from understanding ownership structures to connecting you with trusted local professionals.

👉 Schedule your free 15-minute consultation today and we’ll help you take the next step with confidence.
Questions? email: expatmx.agency@gmail.com and we'll answer any questions you may have.