Yes! You can own property in Mexico, and we are here to help make the process easy and understandable. We will accompany you step-by-step and introduce you to all the people and resources you'll need to purchase your property with complete peace of mind.
In the interior of Mexico, you can buy property fee simple in your own name, just as you would in the United States or Canada. But Mexican law has special exceptions governing property within 31 miles of the coast and within 62 miles of the border, an area known as the Restricted Zone. Most of the properties shown on this site are located within this zone.
After 1970, the Mexican government passed laws to permit foreigners, as private individuals, to buy property in the Restricted Zone through a bank trust or fideicomiso.
This trust, initially established for a 50 year term and renewable for an additional 50, grants you, the beneficiary, every right of ownership. You may use, modify, rent or sell the property. In the event of your death, the property passes to the beneficiary you have named without the necessity for probate. The current cost of establishing a trust is about $2,500 USD, and the annual maintenance fee charged after the second year is currently about $400 USD. Charges vary from bank to bank, and the annual maintenance fee depends on the value of the property.
If you intend to use the property for business, it is easy to form a Mexican Corporation, and in most cases is not necessary to have a Mexican partner. The property may be purchased by the corporation and 100% owned. Costs of forming a corporation vary from $1,000 to $2,000 USD. The Mexican government currently requires monthly tax filings, so plan to pay a Mexican accountant about $50 to $100 USD a month. It is also important that the principal officers of the corporation apply for and obtain FM3 Visas from the Department of Immigration. This process is not difficult - you can do it yourself, or we can recommend legal assistance.
Once you find your property, we will write a simple preliminary purchase agreement with the basic details of the transaction - price, closing date (subject to formation of the Trust or Corporation), and special exclusions or any special conditions.
The final sales agreement will be executed by a Notario Publico, a respected attorney with special government recognition to act in real estate transactions. It is the Notarios responsibility to review the deeds and title to the property, ensure that there are no existing liens, and then to formalize the final contract of sale, draft the new deed, collect and pay appropriate taxes and record the transfer as required by law.
It is customary in Mexico for most of the closing costs to be paid by the Buyer. Costs will be based on the appraised value of the property which may be lower than the actual sales price. There is a 2% transfer tax plus attorneys fees which will generally amount to 2-3% of the appraised value of the property.
Real estate commissions are generally paid by the Seller, unless we have been retained as your Buyers Broker. In most cases commissions are 6% of the sales price.
Recently, some U.S. Companies are bringing mortgage financing to Mexico. We were happy to be able to report that these companies are offering U.S. and Canadian citizens the opportunity to
finance their Mexican property purchases. Interest rates are a bit higher than what you might pay at home, but if you are interested in learning more, contact these
TEL: U.S. 800-370-1130, 205-951-7337
Marshall & Ilsley Bank
TEL: U.S. 480-855-8024
TEL: U.S. 800-281-0792
WMC, Affiliate of GE Mexico
TEL: US 800-287-6262
Ricardo Garcia Conde
TEL: Mexico 52-555-728-1900
In Puerto Vallarta
Wayne Franklin - Doug Jones
TEL: Mexico 52-918-342-0715