Can a foreigner buy property in Mexico?

Yes. Foreigners can freely buy property in Mexico. In the restricted zone (50 km from the coast or 100 km from a border), they do so through a bank trust (fideicomiso) that grants them all ownership rights.

How much does a fideicomiso cost?

Setting up a fideicomiso costs between $2,000 and $3,500 USD one-time, plus an annual fee of $500 to $800 USD paid to the trustee bank. These are the official costs and vary by bank.

How long does the fideicomiso process take?

The full fideicomiso takes between 45 and 90 days, from contract signing to final deed registration before a notary public.

Does the fideicomiso give the same rights as direct ownership?

Yes. The trust beneficiary can live in the property, rent it, remodel it, sell it, or pass it to heirs. The rights are equivalent to those of a Mexican owner.

How long does the fideicomiso last?

The fideicomiso has an initial 50-year term, indefinitely renewable by the beneficiary or their heirs.

Fideicomiso Bank Trust: How Foreigners Buy Property in Mexico

If you are a foreigner and want to buy property in Cancun, Playa del Carmen, Tulum, Isla Mujeres, or any coastal area of Mexico, the first thing you need to understand is the fideicomiso bancario (bank trust). It's the legal instrument that makes it possible — and completely safe — for non-Mexicans to own property in the so-called "restricted zone."

In this guide, we'll explain what it is, how much it costs, how long it takes, and the full process step by step, without unnecessary legal jargon.

What is the restricted zone?

The Mexican Constitution establishes that foreigners cannot acquire direct ownership of land within 100 km of a border or 50 km of the coastline. All of the Riviera Maya falls within this restricted zone.

However, this doesn't mean foreigners can't buy there. The Foreign Investment Law created a perfectly valid and secure legal structure: the bank trust or fideicomiso.

What is a fideicomiso?

A fideicomiso is a contract in which an authorized Mexican bank acquires the property on behalf of the foreigner and holds it in trust for their benefit. The foreigner is the beneficiary (fideicomisario) and has all ownership rights: they can live in it, rent it, remodel it, sell it, or pass it to heirs.

It's important to emphasize: the bank does not own your property. It simply holds title on your behalf by legal mandate, in the same way a notary holds a will.

Year term

45-90

Days to close

100%

Ownership rights

Rights granted by the fideicomiso

Live in the property — for residential, vacation, or retirement purposes
Rent the property — short-term (Airbnb, Booking) or long-term
Remodel, expand, or demolish — subject only to municipal permits
Sell the property — to another foreigner or to a Mexican citizen
Pass it to heirs — you designate substitute beneficiaries directly in the trust contract
Use it as mortgage collateral — for financing purposes

The fideicomiso gives you the same practical rights as direct ownership by a Mexican citizen. The only difference is the legal structure under which it is registered.

Real costs of the fideicomiso in 2026

Costs vary by trustee bank (Banorte, Scotiabank, BBVA, Santander, Banamex, and others), but these are the current ranges:

Initial setup: $2,000 – $3,500 USD (one-time fee, paid when establishing the trust)
Annual bank fee: $500 – $800 USD (to keep the trust active)
Foreign Affairs Ministry (SRE) permit: approximately $2,000 MXN
Notary fees: 1% – 1.5% of the property value
ISAI (Real Estate Acquisition Tax): 2% – 4% of cadastral value depending on the state

In total, closing costs for a $500,000 USD property range between $15,000 and $22,000 USD, including the fideicomiso. For your specific property, you can calculate your closing costs by municipality with our calculator.

The process step by step

Signing the purchase agreement

After choosing the property and agreeing on price and dates in an offer letter signed by both parties, you sign the promissory purchase agreement and pay the down payment.

Trustee bank selection

You choose the bank that will administer the trust. Your advisor or notary will recommend an institution based on cost and timing.

SRE permit application

The Foreign Affairs Ministry issues authorization to create the trust. Takes 10-20 business days.

Trust contract drafting

The bank and notary prepare the contract. You designate substitute beneficiaries (heirs) and set conditions.

Closing before a notary public

On closing day you sign the deed and trust contract before the notary. You make the full property payment.

Public property registry

The notary registers the property with the Public Registry. You receive certified copies within 30-45 days.

Documents you will need

Valid passport (and visa if required by your nationality)
Proof of address from your country of origin
Marriage certificate (if applicable, to define marital property regime)
Official photo ID
Tax identification from your country (TIN for U.S., SIN for Canada)
Temporary or permanent CURP (can be obtained in Mexico)

Tax benefits for foreigners

Mexico has double-taxation treaties with the United States, Canada, and over 50 other countries. This means taxes paid in Mexico can be credited in your home country, avoiding double taxation.

Additionally, if you rent the property on Airbnb, you can apply the rental income regime with effective rates of 12-15% on income, and deduct management, maintenance, and depreciation expenses.

Common mistakes to avoid

Buying through a "prestanombre" — putting the property under a Mexican citizen's name. It's illegal, insecure, and lacks judicial protection. Never do this.
Not vetting the developer — research delivered projects, previous buyer reviews, and the company's legal standing.
Paying in cash or without a notarized receipt — all payments must be reflected in the deed. Informal payments create serious tax and legal problems.
Not reviewing condo regime terms — maintenance fees, internal regulations, reserve funds.
Skipping the notary — in Mexico, notarial deeds are mandatory. Without them, the purchase doesn't legally exist.

Several of these mistakes are also the exact red flags scammers exploit. If you want a full anti-fraud due-diligence checklist before wiring a single dollar, read our guide to avoiding real estate fraud in the Riviera Maya.

How long does the full process take?

From signing the promissory agreement to holding your deed, the average timeline is 45 to 90 days. The range depends on:

SRE processing time (10-20 business days)
Notary availability
Whether official document translations are required
Whether the property is pre-construction (adjusts to delivery schedule)

Conclusion

Buying property in Mexico as a foreigner is completely legal, safe, and common. The fideicomiso bank trust is a proven instrument that has allowed hundreds of thousands of Americans, Canadians, and Europeans to invest in the Mexican Caribbean with all the guarantees of a local owner.

The key is to surround yourself with the right professionals: a real estate advisor with international experience, a trusted notary public, and a solid trustee bank. At Nautilus Real Estate we coordinate the full process so your purchase in Mexico is as smooth as it would be in your home country.