Real Estate Buying Guide for Foreigners in Mexico
Real Estate Buying Guide for Foreigners in Mexico
The most important step is to verify the legal authenticity of the property by reviewing the six key documents required to legitimize a property sale in Mexico." Whether the property is new or pre owned, it’s important to make sure it has all the required government permits and follows all building regulations.
If you're buying during the pre-sale stage or from a real estate developer, it’s very important to check the developer’s financial health, find out if the project has any existing mortgage, and look into their background and past projects.
It’s essential to have a thorough inspection to ensure the property complies with all construction and architectural standards, and to evaluate the overall quality and durability.
We highly recommend doing a thorough inspection of all the materials in the property — from the structural elements to the final finishes.
Foreigners can buy property in Mexico, but there are restrictions within the so-called Restricted Zone, which includes land located within 50 kilometers (about 31 miles) of the coast or 100 kilometers (about 62 miles) of international borders. However, this restriction can be bypassed legally through a fideicomiso, a bank trust that allows foreigners to hold property in these areas while retaining full control.
It is also possible for a foreigner to acquire property in a restricted zone by establishing a corporation (such as an LLC), which is a relatively straightforward process. This option not only facilitates property management but also allows for the deduction of property-related expenses in the company's accounting.
Moreover, it is an excellent solution for properties with multiple owners, as ownership can be divided based on the number of shares each person holds in the corporation. These shares are also inheritable without triggering any transfer tax, making this structure highly beneficial for estate planning purposes.
The fideicomiso is a 50-year renewable trust agreement with a Mexican bank. The foreign buyer is the beneficiary and can sell, lease, or will the property. This system was created to promote foreign investment while complying with constitutional limitations.
Outside the restricted zone, foreigners can buy property directly without a trust or through a Mexican corporation, especially if the property is intended for business or rental purposes.
There is no need to be a resident or even physically present in Mexico to purchase real estate. The process can be handled through ALSo Buyer Advisors and is relatively straightforward with the help of a notary public and qualified legal professionals like us.
Hotspots for foreign investment include the Riviera Maya (Cancún, Playa del Carmen, Tulum), Puerto Vallarta, San Miguel de Allende, and Baja California. These locations offer strong rental potential, especially for vacation rentals.
Mexico has relatively low property taxes compared to many countries. Annual taxes (predial) are often just a few hundred dollars. Buyers should also budget for closing costs, typically around 5–7% of the purchase price.
Mexico has one of the largest foreign resident populations in Latin America. This has led to bilingual services, international schools, and healthcare facilities catering to expats.
Having a third-party like ALSO Real Estate Buyer Advisors for technical and legal advice during real estate transactions in Mexico is crucial because it ensures that the process is transparent, compliant with local laws, and free of potential risks. A qualified advisor can identify legal issues, verify property titles, and ensure that the purchase follows all regulations. This helps buyers avoid future disputes, hidden costs, or legal complications, making the transaction safer and more reliable.
Avoid fraud and legal issues. Don’t rely solely on someone whose duty is to the seller.
In Mexico, mortgage loans are available to foreigners; however, interest rates are generally higher than in the United States. Still, they can be a good option for those looking to finance a purchase, and the qualification process is quite similar and aligned with standards from the borrower's home country.
That said, not all properties are eligible—such as pre-sale units that are not yet ready for title registration—so it’s important to conduct a detailed property search when planning to buy with financing. ALSo Buyer Advisors partners with several institutions that offer mortgage loans to foreigners, and we manage the entire application process on your behalf.
Title insurance: Protects real estate owners and lenders against any property loss or damage they might experience because of liens, encumbrances or defects in the title to the property. Each title insurance policy is subject to specific terms, conditions and exclusions. Title insurance is not widely used in Mexico; however, in certain cases and based on our research, we may recommend obtaining one.
Property Insurance: A property insurance in Mexico protects real estate against risks like fire, theft, earthquakes, hurricanes, or other damages. It helps cover repair or replacement costs
*Our service includes a one-year insurance policy covering legal services related to breaches, as well as warranty follow-up insurance for construction defects in the property.
1. Cancun - Riviera Maya
Invest in land, earn a piece of paradise.
Cancun and the Riviera Maya make up the most sought-after region in Mexico for beachfront properties, offering the widest range of options. Stretching from the newly revitalized Cancun—with its modern developments, golf courses, and marinas—through the vibrant coastal area of Playa del Carmen, where there's always something new to discover, all the way to the trendy, up-and-coming destination of Tulum on the Mexican Caribbean, this region offers endless opportunities. Thanks to its vast size, the real estate market here is incredibly diverse, with options ranging from very attractive entry-level prices to premium investments. However, it's always essential to evaluate carefully—not just to live in paradise, but to ensure long-term value appreciation as well.
For those looking for a more Caribbean atmosphere, this region also features the stunning islands of Cozumel and Isla Mujeres, offering exceptional opportunities to purchase uniquely charming properties.
2. Puerto Vallarta - Riviera Nayarit
The Jewel of the Pacific.
Nestled between lush tropical mountains and the beautiful warm waters of the Pacific—it's no coincidence that this city is home to our headquarters.
This city lies at a latitude similar to that of Hawaii and the Philippines, which explains its breathtaking natural beauty. Towering mountains covered in lush vegetation and vibrant wildlife create a stunning contrast with the Pacific Ocean, offering a truly one-of-a-kind landscape. Puerto Vallarta is also the only international destination in Mexico that features a fully colonial downtown by the sea, a delight to walk through and enjoy its welcoming people and exceptional restaurants.
Together with the Riviera Nayarit, the area is home to ultra-exclusive, world-class properties, stretching from Nuevo Vallarta and Bucerías to Punta Mita, Sayulita, and the coastal regions of Nayarit. The Riviera Nayarit is quickly earning a place among North America's jet set, thanks to its unique villas and luxurious estates that offer unmatched privacy and exclusivity.
3. Los Cabos - Cabo San Lucas
A Rising Star in Coastal Luxury
Nestled at the southern tip of Mexico’s Baja California Peninsula, Los Cabos is a vibrant region composed of two main towns: Cabo San Lucas and San José del Cabo, connected by a scenic 30-kilometer tourist corridor. Over the past few decades, Los Cabos has transformed from a sleepy fishing village into one of the most sought-after destinations in Mexico, not only for vacationers but also for real estate investors from around the world.
Why Los Cabos?
Los Cabos offers a rare blend of natural beauty, luxury amenities, and a relaxed coastal lifestyle. Stunning beaches, dramatic desert landscapes, world-class golf courses, and a thriving culinary scene make it a magnet for both short-term visitors and long-term residents. Its proximity to the U.S., particularly to cities like Los Angeles and Dallas, makes it especially appealing to North American buyers.
The Real Estate Landscape
The Los Cabos real estate market has seen consistent growth, with a notable surge in activity following the COVID-19 pandemic. Buyers are drawn to a wide range of property types, from oceanfront condominiums and luxury villas to exclusive gated communities with resort-style amenities. There’s also increasing demand for vacation rental properties and homes suited for remote work or retirement living.
Key trends include:
Strong demand from U.S. and Canadian buyers.
Rising property values in high-end areas like Pedregal, Palmilla, and the Tourist Corridor.
Increased focus on sustainable, eco-friendly developments.
Expanded infrastructure, including improved highways, private medical facilities, and airport upgrades.
4. Mazatlan
Mexico’s Hidden Gem on the Rise
Located on Mexico’s Pacific Coast in the state of Sinaloa, Mazatlán is a city that blends rich colonial heritage with vibrant beach culture. Known as the “Pearl of the Pacific,” Mazatlán is gaining increasing attention from tourists, retirees, and real estate investors alike for its affordability, charm, and growing infrastructure.
Mazatlán offers a unique combination of historic character and coastal living. Its beautifully restored Centro Histórico (Old Town) features colonial-era architecture, quaint plazas, and a thriving arts scene. Meanwhile, its Golden Zone (Zona Dorada) boasts miles of sandy beaches, modern resorts, and an ever-expanding selection of restaurants and nightlife venues.
Unlike more commercialized destinations, Mazatlán retains an authentic Mexican feel while still offering the amenities that foreign buyers seek — making it particularly appealing to retirees and digital nomads looking for a lower cost of living without sacrificing quality of life.
Real Estate Market Overview
The Mazatlán real estate market is one of the most affordable coastal markets in Mexico, yet it’s experiencing steady growth thanks to increased domestic and international interest. Properties range from colonial-style homes in the historic center to modern beachfront condos and gated communities.
Key trends:
Rising interest from U.S. and Canadian buyers seeking affordable secnd homes.
Expansion of condominium developments along the Malecón and in the Cerritos and Marina areas.
Investment in revitalizing historic districts, boosting demand for restored homes.
Mazatlán is considered a low-risk, high-value market, particularly for early investors. The city is investing heavily in infrastructure, including port upgrades, road improvements, and tourism promotion, all of which contribute to rising property values.
Foreign buyers can purchase property safely through a fideicomiso (bank trust), and the buying process is generally straightforward with the help of reputable local real estate professionals.
5. Mexico City
A Growing Opportunity
Mexico City has become an increasingly attractive destination for foreign buyers and investors in recent years. With its rich cultural heritage, vibrant urban life, and relatively affordable real estate compared to major cities in North America and Europe, the capital offers a unique opportunity for those looking to own property abroad.
Foreigners are allowed to buy property in Mexico, including in Mexico City, with relatively few restrictions. Unlike coastal or border areas, where purchases within the so-called "restricted zones" require a bank trust (fideicomiso), the interior of the country—including the capital—permits direct ownership under a Mexican deed (escritura).
The city offers a wide range of property types, from colonial-style homes in Coyoacán to modern apartments in neighborhoods like Polanco, Condesa, and Roma. These areas are especially popular among expats due to their safety, amenities, walkability, and proximity to international schools, embassies, and cultural attractions.
One of the main appeals for foreign investors is value for money. While prices have risen in recent years, property in Mexico City still tends to be significantly more affordable than in cities like New York, London, or Los Angeles. Additionally, the potential for rental income—especially through platforms like Airbnb—has made investing in the capital an appealing prospect.
However, navigating the real estate market in Mexico can be complex. Legal guidance, a reputable real estate agent, and thorough due diligence are essential. Issues like property titles, zoning regulations, and construction permits require careful review to avoid complications.
In summary, Mexico City’s real estate market presents promising opportunities for foreigners—whether they’re seeking a second home, retirement property, or investment. With the right approach and support, purchasing property in the capital can be a rewarding venture.
6. Merida
A Promising Investment Destination
In recent years, Mérida, Yucatán has become one of the most attractive real estate destinations in Mexico for foreigners. Known for its colonial charm, low cost of living, and strong sense of safety, the city is drawing retirees, remote workers, and investors alike.
The local property market offers a wide range of options, from restored colonial homes in the historic center to new developments and gated communities on the city’s outskirts. Popular neighborhoods among expats include Santiago, Santa Ana, and García Ginerés, where traditional architecture meets walkable streets, local markets, and a growing café culture.
Prices remain affordable by North American or European standards, although demand is steadily driving them up, particularly in central areas. Despite this, Mérida continues to offer excellent value for long-term investors and those looking to relocate or retire.
Another key factor is infrastructure. Mérida boasts quality healthcare, reliable internet, and a well-connected airport, making it an ideal base for international residents. The city’s growing reputation for safety also contributes to its appeal—Yucatán is consistently ranked as one of the safest states in Mexico.
For those who wish to live near the sea, Mérida also offers access to the beautiful beaches of Puerto Progreso and Telchac, located just 40 minutes from the historic center. These are very appealing places to live and are experiencing remarkable growth in the real estate market
In summary, Mérida offers a blend of historical beauty, modern convenience, and strong investment potential. For foreigners looking to own a piece of Mexico in a stable, welcoming environment, Mérida is an increasingly compelling choice.
7. San Miguel de Allende
A Timeless Investment for Foreign Buyers
San Miguel de Allende, a picturesque colonial town in central Mexico, has long captured the hearts of foreign visitors—and many have chosen to stay. With its cobblestone streets, vibrant arts scene, and temperate climate, the city offers an exceptional lifestyle that blends old-world charm with modern comfort. It’s no surprise that San Miguel consistently ranks as one of the top destinations for expats and retirees in Latin America.
From a real estate perspective, San Miguel is a mature and stable market that continues to attract foreign buyers. The historic center, known for its beautifully preserved architecture and walkability, remains the most sought-after area. However, newer developments on the outskirts of town—offering more space, privacy, and modern amenities—are gaining attention, especially among younger expats and families.
Prices in San Miguel vary widely depending on location, size, and condition, but they remain competitive compared to many North American cities. While the historic center commands premium prices, it also offers strong rental potential for short-term visitors. This has made the area particularly attractive for investors seeking both capital appreciation and rental income.
One of the city’s greatest assets is its strong international community. English is widely spoken, healthcare is accessible and affordable, and the lifestyle is enriched by festivals, cultural events, and a thriving culinary scene. These factors, along with political stability and the region’s safety, make San Miguel de Allende a top-tier destination for foreign buyers looking for more than just a real estate investment—many are looking for a better quality of life.
In summary, San Miguel de Allende offers a rare combination of aesthetic beauty, cultural depth, and real estate opportunity. Whether you’re retiring, relocating, or investing, the city delivers enduring value and a welcoming community.
8. Queretaro
Growth, Stability, and Opportunity
Querétaro has quickly become one of Mexico’s most attractive cities for foreign real estate buyers. With its clean, modern infrastructure, growing economy, and high quality of life, the city offers a compelling alternative to more saturated markets like Mexico City or San Miguel de Allende.
One of the main draws for foreigners is Querétaro’s economic stability and modern feel. Known as a hub for the aerospace and technology industries, the city attracts both national and international investment. This ongoing growth has fueled steady development in the housing market, creating opportunities for both long-term living and rental income.
Foreigners are allowed to purchase property in Querétaro without restrictions, as it is not located in a coastal or border “restricted zone.” This means that international buyers can acquire full ownership of property in their own name—making the buying process more straightforward compared to other regions in Mexico.
Querétaro’s real estate offerings are diverse. From colonial-style homes in the historic downtown to sleek condominiums in high-end neighborhoods like Juriquilla and Zibata, there’s something for every taste and budget. Gated communities with amenities like pools, gyms, and green areas are especially popular among expats and returning Mexican nationals.
In terms of lifestyle, Querétaro delivers an excellent balance.
Prices remain more affordable than in coastal tourist zones, but they have been rising steadily as demand increases. For investors, this represents an opportunity for capital appreciation. For retirees or remote workers, it’s a chance to enjoy a high standard of living at a reasonable cost.
In summary, Querétaro is a city on the rise—with solid infrastructure, economic strength, and a welcoming atmosphere for foreign residents. Whether you're looking to invest, relocate, or retire, this dynamic city offers both value and long-term potential.
9. Guadalajara - Chapala
Tradition Meets Innovation
The real estate market in the Guadalajara and Chapala region of Jalisco, Mexico, continues to attract a growing number of foreign buyers, particularly from the United States, Canada, and Europe. The area's blend of modern infrastructure, rich cultural heritage, and affordable cost of living makes it especially appealing to retirees, digital nomads, and investors.
Guadalajara, Mexico’s second-largest city, offers a vibrant urban lifestyle with a strong tech industry, international schools, and a dynamic arts scene. Foreigners are drawn to neighborhoods such as Providencia, Chapalita, and the Historic Center, where colonial architecture meets modern amenities. Property values in Guadalajara have been rising steadily, though they remain accessible compared to North American or European standards.
Zapopan, a thriving suburb of Guadalajara, is becoming increasingly popular with foreign buyers thanks to its modern infrastructure, safety, and quality of life. Known for upscale neighborhoods like Puerta de Hierro and Valle Real, it offers luxury condos, gated communities, and proximity to shopping, hospitals, and international schools. With property values steadily rising, Zapopan presents a strong investment opportunity and an ideal location for expats seeking comfort and convenience in western Mexico.
Lakeside Chapala, about an hour south of Guadalajara, is one of the most popular retirement destinations for foreigners in Mexico. Towns like Ajijic, Chapala, and San Antonio Tlayacapan host well-established expat communities, supported by bilingual services, expat clubs, and international clinics. The real estate market here ranges from traditional Mexican-style homes to upscale lake-view villas. Prices are higher in Ajijic due to demand, but still offer significant value.
Foreigners can legally own property in these areas (unlike coastal and border zones, which require fideicomisos or trusts). Buying real estate in Jalisco is a relatively straightforward process, especially with assistance from reputable bilingual real estate agents and legal advisors familiar with expat transactions.
Overall, the region offers a stable investment environment, excellent quality of life, and strong potential for long-term appreciation, making it an attractive option for foreign buyers.
10. La Paz
Serenity by the Sea
La Paz, the capital of Baja California Sur, is steadily gaining attention among foreign buyers seeking a more laid-back and authentic coastal experience in Mexico. Unlike the more commercialized areas of Cabo San Lucas or Cancún, La Paz offers a quieter, more local lifestyle—yet still with stunning beaches, modern infrastructure, and increasing real estate potential.
For foreigners, buying property in La Paz is entirely possible through the use of a fideicomiso (bank trust), which is required for non-Mexican citizens purchasing land within 50 km of the coastline. This is a well-established and safe process that gives foreign buyers full rights to use, lease, remodel, or sell the property, just like any Mexican citizen.
The real estate market in La Paz is diverse and relatively affordable. Buyers will find a range of options—from ocean-view condos and beachfront homes in areas like El Centenario and Costa Baja, to more budget-friendly homes further inland. There’s also growing interest in lots and eco-friendly developments in surrounding areas such as El Sargento and La Ventana, popular with adventure seekers and kite-surfers.
What sets La Paz apart is its calm atmosphere and genuine community vibe. The city maintains a balance between modern living and a slower pace of life. Many foreign residents appreciate the low crime rate, walkable waterfront promenade (malecón), quality healthcare, and the proximity to pristine natural areas like Espiritu Santo Island and Balandra Beach.
Property values in La Paz have shown steady growth, particularly in recent years as more North Americans and Europeans discover the city. While it's still considered an affordable alternative to Los Cabos, rising demand suggests strong investment potential over the next decade.
In short, La Paz offers a compelling mix of safety, natural beauty, and affordability, making it an excellent option for foreigners looking to buy property—whether as a vacation home, retirement spot, or long-term investment.
Nuevo Vallarta
Avenida de las Palmas N.3
Interior 13, Nuevo Vallarta, Nay. MEX
Queretaro - San Miguel de Allende
Blvd. Bernardo Quintana 524A
Col Arboledas, Querétaro. MEX
Representative Offices
Miami 777 NW 72nd Ave STE 1075, Miami, FL 33126 USA
Los Cabos Blvd. Mauricio Castro, Plaza Las Velas.
Cancún Av. Bonampak, Sm. 6, Mz. 1. Piso 5
© Copyright 2025 - All Rights Reserved
Instagram
alsoadvisors
Facebook
ALSOAdvisors