Understanding Property Ownership in Mexico
One of the most common questions future retirees ask is: Can American citizens own land in Mexico? The short answer is yes—but with some specific rules to follow. Foreigners can own property outright in most parts of Mexico. However, in the so-called restricted zone—areas within 50 km of the coast or 100 km of the borders—ownership must be structured through a bank trust (fideicomiso) or a Mexican corporation.
This system often surprises people who come from the U.S. or Canada, but in practice, a fideicomiso gives you the same control and rights as a direct title: you can sell, lease, rent, improve, and even pass the property to your heirs.
Do I Need to Be A Legal Resident to Buy Real Estate in Mexico?
While you don’t need residency to purchase real estate, many retirees decide to apply for a temporary residency or even Mexico permanent residency. Why? Because these visas make day-to-day life simpler: opening bank accounts, accessing healthcare, and staying longer without visa renewals.
Even avoiding capital tax gains when selling, requires you to prove that the property is your legal residence and that you have a legal residency in the country. The financial requirements vary, but for many retirees with steady income or savings, they are quite achievable.
How Does Capital Tax Gains Work in Mexico?
Another key concern is capital gains tax in Mexico. If you eventually sell your property, the tax implications depend on several factors: how long you’ve owned the property, whether it was your primary residence, and proper documentation at closing. Working with a knowledgeable notary and real estate attorney is essential to avoid unnecessary costs.
Why is Mexico So Popular Amongst Retirees?
Mexico consistently ranks among the best places to retire in the world thanks to its affordability, vibrant culture, and proximity to the U.S. The cost of living can be 40–60% lower than in major U.S. cities, making it possible to live comfortably on around $2,500 per month or less, depending on the location and lifestyle.
Popular retirement destinations include Playa del Carmen, Tulum, Mérida, Campeche, Puerto Vallarta, and Lake Chapala. Each offers a unique mix of modern amenities, healthcare access, and community life.
How Can Foreigners Buy Property in Mexico?
If you’re ready to take the leap, understanding how to buy real estate in Mexico is the first step. The process usually includes:
- Making an offer with the help of a buyer’s representative.
- Conducting due diligence through a qualified lawyer.
- Setting up the fideicomiso (if in the restricted zone).
- Finalizing the purchase before a Mexican Notary Public, the highest legal authority in property transactions.
With the right guidance, buying property in Mexico is straightforward and secure.
Want All Your FAQs Answered?
If these questions are on your mind, you’re not alone. That’s why we’re hosting a FREE WEBINAR:
“How to Retire in Mexico? Real Estate & Legal FAQs”
October 9th | 4:00–5:00 pm CST
Join Thomas Lloyd, CEO of Top Mexico Real Estate, and Gerardo González, a Notary Public in Mexico, as they break down the legal and real estate details you need to know before making your move.
