Thinking About Buying A Home in Mexico? Here’s What You Need to Know

Melissa Eisenman

Pink Mexican villa house with tan wicker furniture and glass tables.

Last year, over 40 million people from around the globe visited Mexico. And it’s no surprise — Mexico is an extraordinary country full of wonderful options for guests looking for an experience, an adventure, breathtaking nature spots, and delicious cuisine. With all these amazing characteristics, you can imagine how many people become fascinated with the idea (or dream) of purchasing a home in Mexico.

While there are many factors to consider, it’s important to ask these basic questions before buying a home in Mexico.

Can a non-Mexican own property in Mexico? If so, what is entailed for a foreigner to purchase a home?

The easy answer is yes - buying a home in Mexico as an American or foreigner from any other country is possible. Initially, the Mexican Constitution stated that foreigners could only buy property outside of the Mexican restricted zone, which lies 31 miles (50 km) from the coastline, or 62 miles (100 km) from the borders of Mexico. However, recent laws allow foreign investors to own property within the restricted zone using a fideicomiso (pronounced Fee-day-ee-co-me-so), which is similar to a bank trust that is recorded in public records. A fideicomiso:

Has an annual fee
Lasts for 50 years, with no limit on the number of times it can be renewed.
Gives the bank the deed to the property
Names the buyer the beneficiary, giving them the legal rights to occupy, rent, modify and sell the property

Please remember that you should work only with a professional real estate company and/or agent and a licensed real estate attorney throughout the purchasing process.

Where should I look?

Before buying a property in Mexico, you should take your time and thoroughly research the weather and confirm there are easily accessible utility options in the city or area you’re considering. You should also:

Discover the area’s major highlight. Buying a house in Mexico City will give you plenty of options while some more research may be needed for other areas.
Speak with locals. They'll let you know about all the fun and interesting things that might not show up on the first page of a Google search.
Determine what will best suit your future lifestyle needs. Some areas are great for families, while others may be more tourism-centric.
Join expat forum groups online. Here, foreigners are willing to share information about their experiences in Mexico.

What type of property should I buy?

Here's how to by a house in Mexico: first, decide if you’re looking for a vacation home, an investment property, or a seasonal home. There are many options, including private homes, homes in private communities and condominiums in beautiful complexes. Weigh your options and make a list of pros and cons so that you can easily come to the best conclusion.

Make sure to consider your personal needs and wants, your finances and extra costs, and to compare pre-construction purchases with resell options. If you're buying a resale, have each home inspected and tour them in-person yourself. Negotiate pricing if you can and make sure you have all the necessary documents ready to close the deal when it's time.

White condo building in Mexico surrounded by palm trees.

How hands-on am I required to be?

Having a second home comes with a lot of responsibility- it’s not always easy to maintain two properties at once. If you aren’t able to visit your second home as consistently as you’d like, or you don’t want to spend your vacation time working on landscaping and other chores, consider hiring a property management company to handle any repairs or necessary maintenance while you’re away.

Understanding Home Ownership In Mexico's Managed Communities

If you've decided you're buying a home in Mexico, you'll want to find out if it's part of a homeowners' association (HOA). Managed communities do exist in Mexico, but unless you know the language, you may run into translation hurdles when discussing the managed community lifestyle, leadership, and laws.

That’s why it’s so important to explore the varied terminology used to describe managed communities in Mexico. Download our ebook, "How Do You Say HOA?" to learn terminology used in the U.S., Mexico, and Canada to describe certain aspects of homeowners' associations.

Buying a Home in Mexico FAQs

Can a US citizen buy a home in Mexico?

Yes, US citizens can buy homes in Mexico, but those purchases must be made with some additional provisions compared to standard homebuying in the country.

Initially, the Mexican Constitution stated that foreigners could only buy property outside of the Mexican restricted zone, which lies 31 miles (50 km) from the coastline, or 62 miles (100 km) from the borders of Mexico. However, recent laws allow foreign investors to own property within the restricted zone using a fideicomiso (pronounced Fee-day-ee-co-me-so), which is similar to a bank trust that is recorded in public records.

Can a Canadian citizen buy a home in Mexico?

Buying a home in Mexico as a Canadian is very similar to doing so as an American. Canadians are allowed to make these purchases as long as they follow the rules for foreigners buying homes in the country.

Is it smart to buy a house in Mexico?

Purchasing a home in Mexico is a great decision for many and comes with plenty of benefits, including:

Affordability
Lower cost of living
Vibrant cultural

How long can I stay in Mexico if I buy a house?

Homebuyers in Mexico are typically able to apply for a temporary resident visa, allowing them to live in Mexico for up to four years.

What is the average cost of a house in Mexico?

Home costs in Mexico are determined by a variety of factors including the home type and the region of the country they are located in. Some homes can be purchased for less than $90,000 while luxury properties can go over $1,000,000.