Mexico has become one of the best places to retire in Mexico thanks to its warm climate, affordable lifestyle, and welcoming expat communities. Yet, questions about how to buy real estate in Mexico and the legal process often hold people back. In these FAQs, we’ll cover the most common concerns future retirees have when planning their move.
Can American Citizens Own Land in Mexico?
This is probably the number one question. The answer is yes—American citizens or most foreigners can own land in Mexico, but with one important detail. If the property is within the “restricted zone” (50 km from the coast or 100 km from the border), you’ll need a bank trust (fideicomiso).
In this setup, a Mexican bank holds the title as trustee, but you retain all ownership rights, including the ability to rent, sell, or pass the property on to heirs. Outside the restricted zone, foreigners can buy property outright with a direct deed.
What Are the Mexico Residency Requirements?
If you want to live here full-time, you’ll need to meet Mexico residency requirements. There are two main options:
-Temporary Residency: Often the first step, valid for 1–4 years.
-Mexico Permanent Residency: Ideal for retirees ready to stay long term.
For many, the retire in Mexico visa process is straightforward if you can show steady income, savings, or property ownership. The requirements vary slightly depending on the consulate, so it’s best to consult with a legal expert before applying.
If you’re asking how to buy property in Mexico as an American, the process involves a few extra steps compared to the U.S. or Canada.
How to Buy Property in Mexico as an American?
The process is not simple, but it can be with the right team working next to you. The number one recommendation would be to have a certified buyer representative in Mexico. However, working with a trusted legal for due diligence is just as important. Some of the other main steps would be; securing your bank trust if buying in the restricted zone and signing a promissory contract with a notary.
Knowing how to buy real estate in Mexico safely means surrounding yourself with the right professionals. This ensures that titles are clean, contracts are binding, and your investment is secure.
What About Capital Gains Tax in Mexico?
When it comes time to sell, many foreigners worry about capital gains tax in Mexico. The good news? If you meet certain conditions—like making the property your primary residence—you may qualify for significant exemptions. This is where having the right legal team makes a big difference, as they can help you save money and avoid mistakes.
Considering Retirement in Mexico? Don’t Miss Our Webinar
If these FAQs sparked even more questions, you’re not alone. That’s why Top Mexico Real Estate is hosting a free webinar: “How to Retire in Mexico? Real Estate & Legal FAQs.” Alongside Gerardo González, a notary public and partner at MexLaw, we’ll walk you through the buying process, Mexico permanent residency, and the legal steps to make your retirement move worry-free.
Retiring in Mexico doesn’t have to be complicated. With the right guidance, you can enjoy the beaches, culture, and lifestyle you’ve always dreamed of—without the stress.