Can Americans, Canadians & Other Foreigners Really Own Property in Mexico – Even on the Beach?
- Alberto Amador
- Sep 7
- 5 min read
If you’ve ever dreamed of owning an airy, ocean-view condo in Cancún, a bohemian, jungle-immersed villa in Tulum, or perhaps a mid-century modern pied-à-terre in Mexico City, you’ve probably wondered: Can foreigners actually own property in Mexico? The short answer is yes, and the process is more straightforward than you might think.
Related: Where to Buy Property in the Mexican Caribbean: Your Quick-Guide to 9 Key Destinations in Paradise
The Basics: Foreign Ownership in Mexico
Foreign nationals – whether American, Canadian, European or otherwise – can legally buy and own property anywhere in Mexico. The only distinction comes when purchasing property in the Restricted Zone, which covers:
50 km (about 31 miles) from any coastline.
100 km (about 62 miles) from an international border.
In other words, the very places most international buyers love – beachfront, coastal towns, resort destinations – fall into this category.
Purchasing Property Inside the Restricted Zone: How It Works
To both enable and safeguard foreign ownership within the Restricted Zone, Mexico provides a secure legal framework known as the fideicomiso, or bank trust. This system was introduced under the country’s Foreign Investment Law of 1973 and remains the foundation for foreign ownership of coastal and border-region property today.
Here’s how the fideicomiso actually works:
✓ A Mexican bank holds the property title in trust on your behalf, where you (the buyer) are the sole beneficiary.
✓ The bank does not own or control the property. Only you do.
✓ You have the same property rights as any Mexican owner. You can improve, lease, sell or pass the property on to heirs – without needing approval from the bank.
✓ The fideicomiso is valid for a period of 50 years and can be renewed in perpetuity.
Important distinctions:
✓ The fideicomiso is not a lease.
✓ Even though it’s called a trust, the fideicomiso functions much more like a permit to own. The bank has no decision-making power; it’s simply the legal custodian of the title. Every choice about your property is yours alone.
✓ Should you ever choose, you can even transfer the fideicomiso to a different bank with ease, underscoring that true ownership and decision-making always remain in your hands.
Wondering about purchasing property in Mexico through a U.S. based LLC, corporation, or other business entity from your home country?
You’ll still need a fideicomiso, which in this case will list your foreign legal entity as the beneficiary. This is entirely possible, but involves additional steps. Most importantly, having your formation documents apostilled (officially certified for international use) and translated into Spanish. You’ll also need to present a certificate of good standing from your state or country of origin, and in some cases, a power of attorney designating who can act on behalf of the entity in Mexico.
While this is a valid structure, most foreign buyers only use a home country-based LLC, corporation or other business entity for investment or commercial purposes. For personal use, holding title directly is the simpler, more streamlined option.
Costs of a Fideicomiso
Setting up and maintaining a fideicomiso involves straightforward fees:
Bank Set-up Fee: Typically around $2,500 USD (one-time, payable at closing).
Bank Annual Fee: Generally around $500 USD per year, depending on the bank.
These costs cover the bank’s role as trustee, plus regulatory compliance. They’re a normal and legal part of property ownership inside any Restricted Zone in Mexico.
Why the Fideicomiso Works for Foreign Buyers
✓ Proven track record. The fideicomiso system has been in place since the 1970s, and tens of thousands of foreigners legally hold coastal properties under it today.
✓ Security. The bank is a neutral custodian of title; your ownership rights are fully protected by Mexican law.
✓ Flexibility. You can sell your property at any time. If the new buyer is also foreign, the fideicomiso will be transferred into their name during closing proceedings. If the new buyer is Mexican, the fideicomiso will simply be cancelled.
✓ Estate planning advantages. Naming beneficiaries in your fideicomiso ensures smooth inheritance without the red tape of probate court.
Related: How to Finance Your Dream Property in Mexico as a Foreign Buyer: 7 Lending Options to Consider
Other Ownership Structures: Mexican Corporation
Some foreign investors choose to explore ownership through setting up a Mexican corporation, which can hold property directly. This route is typically used for commercial real estate or when buying multiple properties for rental income. For personal use, the fideicomiso is almost always the more straightforward and cost-effective option.
What About Purchasing Property Outside of the Restricted Zone?
If you’re interested in buying inland – say, the aforementioned Mexico City pied-à-terre, a ranch in San Miguel de Allende or perhaps a restored colonial-era hacienda in Mérida – you don’t need a fideicomiso. You can hold the title directly.
The Step-by-Step Purchase Process in Mexico: An Overview
For international buyers, understanding the flow of a transaction adds peace of mind. Here’s what the process typically looks like in the state of Quintana Roo (home to the Riviera Maya and greater Mexican Caribbean):
1. Offer & Acceptance
✓ A written offer (the carta oftera) is submitted and negotiated.
✓ Once accepted, both parties move forward with agreed terms and price.
2. Earnest Money Deposit
✓ At this stage, the buyer usually provides an earnest money deposit (often 5-10% of the purchase price). In a pre-sale transaction, this amount goes directly to the developer. In a resale (private seller) transaction, it is generally held in escrow by the buyer’s chosen notary or a trusted third party.
3. Promissory Agreement (Contrato de Promesa de Compraventa)
✓ This legal agreement sets the timeline for due diligence and closing, and confirms the terms of sale.
✓ Once signed by both parties, the buyer usually provides the agreed downpayment, which is reduced by the amount of the earlier earnest money deposit. In a pre-sale transaction, this amount goes directly to the developer. In a resale (private seller) transaction, it is generally held in escrow by the buyer’s chosen notary or a trusted third party.
4. Due Diligence
✓ A notary (notario público) verifies clear title, reviews permits, checks for liens, and ensures all documents are in order.
✓ This stage confirms the property is free of debts and legally transferable.
5. Fideicomiso Setup (if applicable)
✓ Your chosen bank begins the fideicomiso application and trust deed preparation.
✓ Beneficiaries (such as heirs) are named in the trust documents.
6. Final Deed & Closing
✓ The notary prepares and formalizes the purchase deed (escritura).
✓ Buyer pays the balance of the purchase price, closing costs, and fideicomiso setup fee.
✓ Title (or trust rights) are officially transferred, recorded in the Public Registry, and you receive your deed.
7. Ongoing Ownership
✓ Ongoing ownership responsibilities are the same as any Mexican buyer: utilities, maintenance and property taxes (which are very low – think 0.05% to 0.3% of your property’s assessed value, on average).
✓ If your property is located within the Restricted Zone, you’ll also pay your annual fideicomiso fee (usually invoiced directly by the bank).
The Bottom Line
Yes – foreigners can (and do) legally own property in Mexico, even right on the beach. The fideicomiso may sound complex, but in practice it’s straightforward, protective, and designed to give you the same ownership experience as any Mexican buyer.
When purchasing premium property in Mexico, the key is working with an experienced, licensed real estate advisor and a trusted closing team who understands every legal detail of the process. With the right guidance, your dream of owning property in Mexico isn’t just possible – it’s smart, legally secure and entirely within reach.
Ready to live away?
Contact us – your trusted husband & wife licensed international real estate team in Mexico – for seasoned, on-the-ground insight and expert guidance in making your vacation home, full time residence or investment property in paradise a reality.
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