Buy property in Mexico [2025 Guide]
Buying property in Mexico is possible for foreigners, and for non-resident Mexicans living in the US. Buying a place in Mexico could be a good investment, or you may want to buy a vacation place or somewhere to live yourself, now, or in the future. All in all there are many good reasons to buy property in Mexico – and the good news is that you’re legally able to buy a home in Mexico from the US, subject to a few rules.
This guide covers all you need to start your research. And because buying a property is always a big investment, we’ll also touch on providers like Wise and OFX as good options to make cheap, fast and safe international transfers which could cut your costs when you buy.
Key points: Buying property in Mexico as a foreigner
- Foreigners can buy property in Mexico subject to government permissions
- If you want to buy in the Mexican restricted areas, which include the coasts, you’ll need to set up a bank trust first
- The Mexican property market has seen a general upward trend in the last decade, making it an appealing place for investors
- Consider using a specialist to send your money to Mexico for your purchase, such as Wise which uses the mid-market exchange rate and offers low cost, high-value transfers with discounts of up to 0.17% on fee costs, or OFX which has no transfer fee and no maximum payment limit
| FAQs | Answers |
|---|---|
| Can I buy property in Mexico as a US citizen without being a resident? | Yes. Foreigners can buy property in Mexico subject to government permissions, which may require you to have a Bank Trust to act on your behalf. |
| Can I live in Mexico permanently if I buy a property? | Buying a property in Mexico does not automatically mean you can live there. You still need to have the right visa and permissions in place to cover your stay. |
| What is the cheapest way to transfer money from the US to Mexico? | Consider using a specialist to send your money to Mexico such as Wise which uses the mid-market exchange rate, or OFX which has no transfer fee and no maximum payment limit |
| How much tax do you pay on buying a property in Mexico? | The tax you pay can vary by state and the property’s value. Get legal advice to ensure you understand the rules based on your specific purchase. |
Can US residents and citizens buy property in Mexico?
The Mexican Consulate in the US advises that foreigners can buy property in Mexico, subject to a few important rules. If you’re a Mexican living in the US, these rules don’t apply to you – you’ll be able to buy from the US in the same way you would if you were still living in Mexico.
For foreign buyers it is important to note that you can’t own properties in the ‘restricted zone’ in your own right. This zone covers:
- Areas within 100 kilometers of Mexico’s international borders
- Area within 50 kilometers of Mexico’s coastlines
This doesn’t mean you can’t buy property here at all though. Instead, you’ll need to set up a Bank Trust to act on your behalf, which we’ll look at in a moment.
Aside from this restriction, you’ll also need to get permission from the Mexican government to buy a property there as a foreigner. Because of these additional rules for foreign buyers it is essential you get a local realtor and lawyer to support your purchase.
What are the requirements to buy a house in Mexico?
If you want to buy a property in the Mexican restricted zone you will need to set up a Bank Trust (Fideicomiso) first. In this case, a Mexican Bank will act as a trustee for the property, which you can buy for 50 years initially, with the option to extend the trust beyond this if you want to.
Foreign buyers, in and outside of the restricted zone, will also need to obtain a permit from the Ministry of Foreign Affairs (Secretaría de Relaciones Exteriores, SRE). This is an important step in the process of buying property in Mexico if you’re not a Mexican citizen yourself.
Aside from these specific requirements for foreigners, you’ll also need to prepare adequate documentation to support your purchase of Mexican property.
You’ll always need your passport as a proof of ID and your visa if you’re living in the property.
You’ll then need your certificate from the SRE showing you have permission to buy, and all of the property paperwork – your realtor and legal advisor will help you assemble this set of documents as part of the process.
How to buy a home in Mexico step by step
The exact process you follow to buy a property in Mexico can vary based on whether or not you’re a Mexican citizen, and also whether or not you’re planning to buy in the restricted zone.
You’ll want to have some local support in Mexico to make sure the whole process goes without a hitch – and your advisors will be able to help with any questions you may have about the steps required.
To give a flavor here’s how to buy a home in Mexico step by step for a foreigner or a non-resident:
1. Engage a realtor to help you find a home and act on your behalf during the purchase
If you’re unfamiliar with the process of buying real estate in Mexico, a great realtor is essential. Realistically, even if you’re a Mexican citizen and familiar with the process, if you’re living in the US, using a local realtor will make your purchase far easier to manage. They’ll be able to help lead negotiations and manage the transaction so you can continue with the purchase from a distance.
2. Find the right home and negotiate a sale price
Property searches are likely to start online – we’ll have some good agents to look at, a little later. Once you’ve got an idea of where you want to buy, you can make in person visits supported by your realtor. Then when you’ve spotted the right place for you, it’s time to negotiate a sales price.
3. Draw up a sales agreement and pay your deposit
Once you’ve been able to agree on a price, the realtor and your legal representative can draw up a sales agreement to show your commitment to buy. Once this is completed and signed you will need to pay a deposit – usually 10% of the sale price.
4. Complete all due diligence checks
Your team in Mexico can lead the process to complete due diligence checks and to ensure the property is being legally sold. The Mexican Consulate in the US advises you to use a lawyer to check important details, including that the seller has completed any outstanding mortgage, tax and water payments before you buy.
5. Set up a Bank Trust (Fideicomiso) if needed
If you’re not a Mexican citizen and you want to buy in the restricted area, you must set up a bank trust. If you’re a Mexican living in the US and buying a place back home, this step isn’t needed. Setting up a bank trust requires you to choose a bank to act in your interests and then pay them an annual fee to continue to act on your behalf.
6. Get your SRE Permit from the Ministry of Foreign Affairs if needed
If you’re not a Mexican citizen, you need an SRE permit to buy property in or outside of the restricted area. Your legal advisor can help you set up this step so you have all the documents you need in hand before the purchase closing date.
7. Close and pay all monies owed
The final step is to sign the deed of sale (escritura), and complete the payment processes. You’ll need to pay the seller the remaining money, and also any legal fees, taxes and other costs which are still outstanding.
When you’re sending money overseas from the US, using a specialist provider like Wise could mean you get a faster service – and a lower fee – compared to using your bank. Be sure to shop around before you make any international transfers, to keep down your costs as far as possible, and avoid unnecessary fees and delays.
How much does it cost to buy property in Mexico?
There’s an enormous mixture of different property types in Mexico – which comes with an enormous mix of price tags. Buying a larger property or villa will normally be more expensive than an apartment or condo which is on the smaller size. Location is then the key determinant factor.
You can easily spend a million USD on a coastal villa in a popular resort – while a smaller place in an inland town will set you back a fraction of that.
Once you’ve found the right property for your specific needs and budget, you’ll also need to take into account a few extra costs, which can include:
- Acquisition tax
- Notary fees
- Other annual property taxes
Closing costs do vary a lot as some of the taxes you pay are set by the state and the size or value of the home – budgeting 5% to 10% of the property value is usually advised.
In addition to property costs, international transfer fees and marked up exchange rates can also contribute to costs when you’re making an overseas property purchase.
Specialist providers like Wise and OFX offer cheap, fast and secure international transfers. Take a look at these providers compared to your bank – to see if you can cut out a few fees here to bring down your overall cost.
Wise offers an automatic discount for higher amount transfers and OFX can offer competitive rates for large transfers as well. Here’s a summary:
- Wise: Wise uses the mid-market exchange rate and offers low cost, high-value transfers with discounts of up to 0.17% on fee costs. Transfers are typically completed within 1–2 business days.
- OFX: OFX doesn’t have maximum transfer limits meaning you can send as much currency as you need to, making them a good option for substantial property transactions.
Cheapest places to buy property in Mexico
The costs of real estate in Mexico are changing all the time depending on demand. Generally if you’re interested in the cheapest places to buy Mexican property you’ll be best off sticking with inland cities.
Pueblo is often held up as a good example of a city where your money goes a long way, while still getting a fabulous experience. As well as being UNESCO recognised, Pueblo has amazing food, making this a good choice for many people.
If your focus is on coastal areas there are also some cheaper options to target including Playa del Carmen and Akumal. Shop around to get a feel for the costs in different areas according to your personal needs and preferences.
Best ways to transfer money to Mexico to buy property from the US
If you’re transferring money to Mexico to buy property, you may find that you can save money on fees if you use a specialist international money transfer service instead of your bank.
There are many services available which can offer low costs and high transfer limits, which can make them convenient and quick solutions for transferring money to buy Mexican property.
Here are a few options to consider:
| Provider | Limits | Fees | Exchange rate | Speed |
|---|---|---|---|---|
| Wise | Varied limits, usually up to 1 million USD per transfer | From 0.57% | Mid-market rate | 45% of transfer arrive instantly, 90% in 24 hours* |
| Xe Money Transfer | 535,000 USD per transfer | Variable fee depending on destination | Exchange rate includes a markup | Variable depending on destination and payment method |
| OFX | No limit per transfer | No fee | Exchange rate includes a markup | Variable – usually 1 – 2 days |
| TorFX | No limit per transfer | No fee | Exchange rate includes a markup | Variable – usually 1 – 2 days |
Details correct at time of writing -27th January 2025.
*The speed of transaction claims depends on individual circumstances and may not be available for all transactions
Here’s a quick summary of the providers we’ve selected here:
Wise review: Wise payments can be sent online or in the Wise app, and offer discounts on fees for higher value payments. You’ll be able to fund your transfer from your bank or with a card, and the money could be deposited into a bank account in Mexico quickly and using the mid-market rate with a low, transparent fee.
Xe Money Transfer review: Xe is part of one of the largest money transfer companies globally, and offers payments online and in app, to many countries including Mexico. Xe uses variable fees and an exchange rate which has a small markup added. You can sign up for an account to view the fees which apply based on different payment methods, and to compare the rate you’re quoted against those from other providers.
OFX review: OFX is a global provider of international payments and currency risk management services. There are no transfer fees and there’s no maximum payment limit, making this a good option for high value transfers such as buying a home. The OFX exchange rate has a small markup added. OFX has a 24/7 phone service if you want to arrange your payment by phone instead of online.
TorFX review: TorFX doesn’t have a transfer fee, but uses an exchange rate which has a small markup added. You can arrange your payment online, in app or by phone, and pay using your bank. TorFX has a very strong reputation for customer service, and the strongest possible credit rating which shows they’re a legit company to use.
Pros and cons of buying property in Mexico
| Pros of buying property in Mexico | Cons of buying property in Mexico |
|---|---|
| ✅ Large range of property types and prices ✅ Desirable place to live and work – with quite low costs of living ✅ Close neighbor, making this a good choice for a vacation home or rental ✅ Mexican property has enjoyed steady price growth in recent years | ❌ Buying beachfront property as a foreigner requires a Bank Trust ❌ You need permission to buy property if you’re not Mexican, adding an additional step to the process ❌ You’ll incur additional legal and agent fees in most cases ❌ There is a risk that your property will lose value if markets are volatile |
Financing a property purchase in Mexico
You can buy your property in Mexico using your own savings, or take a loan either in Mexico or in the US if you’re approved for one.
The options vary a lot depending on your citizenship and residence. If you’re from the US and living in Mexico you may find lenders who will offer you a mortgage, but not all banks are willing to support applications from non-resident foreigners.
If you’re a Mexican citizen you may have more luck getting a mortgage or loan, even if you’re based in the US, as you’ll have some local credit history in Mexico which may support your application.
Working with a broker is usually the easy way to get a non-standard mortgage – either as a non-resident or a foreigner in the country you’re buying in. Or, if you have the funds you could buy the place outright using your savings.
Buying a property in Mexico with cash
If you have the savings you could buy a Mexican property outright, and avoid interest and other costs associated with taking a loan. However, if you’re paying using international transfers, bear in mind that moving money from USD to MXN can be extremely expensive with a bank.
Consider using an alternative like Wise or OFX instead for a seamless and cheap transfer to Mexico. Compare different providers to find the best way to send money to Mexico.
How much down payment do you need to buy a house in Mexico?
The down payment you place to secure your purchase is open to negotiation at the point you’re agreeing the details of your property purchase. Usually the seller will ask for at least 10% of the property value.
Paying property tax in Mexico
Annual property taxes apply in Mexico which are set by the local state or municipality. Taxes vary a lot depending on your location and the size of your property, and can be higher in coastal regions compared to smaller inland cities.
Factors affecting the house prices
The primary factors affecting property prices are location and property type. Other factors include government policies, supply and demand, and in the case of buyers from overseas, the relative strength of the currency.
What’s the property market like in Mexico?
The Mexican property market has seen steady growth lately, but it’s not without its ups and downs. Like most of the world, the pandemic caused a decline in sales, and the recent uptick has corrected this.
However, there’s no way to predict the future of house prices – the market will move based on supply and demand, as well as external forces such as government rules and currency costs.
Cheapest ways to pay for a property in Mexico
Assuming you’ll be paying for your new property in Mexico from the US, you’ll need to figure out the best way to move your money to avoid excessive costs. This will mean looking for a provider which offers low fees and a great exchange rate.
When sending a high amount of money overseas, the USD to MXN exchange rate is especially important.
If the provider you use adds a markup to the rate used to convert your USD to MXN, this can add up quickly for higher value transfers.
If you’re sending 250,000 USD for example, and the provider uses a 3% markup, this means paying an additional 3% for the transfer – a huge 7,500 USD.
That’s likely to be far more than the transfer fee, but you may never even know you’re paying it.
Not all providers use this approach. Wise uses the mid-market exchange rate and offers low cost, high-value transfers with discounts of up to 0.17% on fee costs.
Here’s a summary of international transfer fees and rates for the providers we looked at earlier:
| Provider | Fees | Exchange rate |
|---|---|---|
| Wise | From 0.57% Automatic discounts of up to 0.17% on fees for high value transfers | Mid-market rate |
| Xe Money Transfer | Variable fee depending on destination | Exchange rate includes a markup |
| OFX | No fee | Exchange rate includes a markup |
| TorFX | No fee | Exchange rate includes a markup |
*Details correct at time of writing -27th January 2025
Another smart option is to open a multi-currency account with a provider like Wise or Revolut, which lets you hold and send both USD and MXN from the same account.
Wise Account: You can open a Wise account online or in the Wise app, and use it to manage currency exchange and payments to Mexico and around the world. You’ll also be able to order a Wise Multi-Currency Card for easy spending and withdrawals and there’s no fee to spend the currency you hold in your account.
Revolut Account: Revolut also offers multi-currency accounts which support USD and MXN, and which offer debit cards and easy ways to send payments overseas. With Revolut you can pick from several different account plans to find the one which suits your transaction needs, with all plans offering their own features and fees.
Can I live in Mexico permanently if I buy a property?
You can not buy property in Mexico to get a residency permit. In fact, to be able to live in your new home you’ll still need to have the correct visas in place if you’re not a Mexican citizen. Routes to citizenship exist but are likely to require you to live in Mexico for 5 years, with reduced time if you have a Mexican spouse or child.
If you’re considering moving to Mexico long-term, these guides might help you in your research:
- Digital nomad visa for Mexico
- How much spending money do you need for Mexico?
- Can I use Revolut card in Mexico?
- Can I use Wise Multi-Currency Card in Mexico?
- Best ways to take money to Mexico
- Best places to get Mexican Pesos in the US
- What is the currency in Mexico?
Tips for foreigners to buy property in Mexico
Here are a few final thoughts on buying a property in Mexico as a foreigner non-resident:
- Foreigners need permission to buy property, with additional rules in place if you’re buying in the restricted zones such as the coast
- Buying a property in Mexico will not give you a visa automatically
- Mexican property prices vary enormously – having a local realtor on side can be the best way to learn about the options in the area you’re interested in
- When sending money to Mexico for your purchase, check out and compare a few different money transfer services like Wise and OFX, to make sure you get the best available deal
How to find a Mexican property
You’ll want to start your search for properties in Mexico using online platforms, real estate agents, and local listings.
Umbrella websites like those we’ll cover in a moment are a great place to get a feel for the property prices and options on different places in Mexico.
You can filter based on price, features and location in many cases, to narrow down your search to places which may be of specific interest.
Mexico property websites
Using an umbrella website is a good way to start your search for a Mexican property. Different sites have their own niches, but because many people buy Mexican real estate from the US, there are options specialising in expat and foreign buyers which can be a good pick. Here are a few you may want to consider to jump start your search:
Should you rent or buy a house in Mexico?
If you’re moving to Mexico, the decision to buy or rent may simply come down to your long term plans. If you’re planning on staying a long time – or want to buy now as an investment – buying could be tempting.
But renting is also a good option if you’re testing the market or don’t have the funds right now to buy.
| When you’re in Mexico, you’ve got a few different options to exchange USD to MXN. Here are some pages that might be useful in your search: |
Is it a good idea to buy a house as an investment in Mexico?
You should take professional advice before you buy a property as an investment – in Mexico or anywhere else. Property values do change, and the value of your place may go down as well as up. While the market in Mexico has seen steady growth in past years, this can’t be guaranteed by anyone in future.
If growing your investment is the key priority for you, make sure you cut out all unnecessary costs when buying your property in Mexico by using a money transfer service like Wise or OFX.
Conclusion
Buying a new home in Mexico from the US is perfectly possible, but you’ll need to be mindful of a few rules if you’re not a Mexican citizen.
Foreign buyers in Mexico need to get state permission, and there are also additional rules if you want to buy in the restricted zone which includes all beachfront properties. However, because many people buy Mexican real estate from the US every year, there are many local realtors and lawyers who will be able to help you with your purchase.
This guide gives you some resources to start your search for a new home in Mexico. Before you make any payments from USD to MXN, be sure to look at providers like Wise and OFX which can be helpful when buying property abroad, with fast, cheap and secure international transfers, with good exchange rates.
FAQs on buying Property in Mexico
Can US residents buy property in Mexico?
Yes. However, if you’re not a Mexican citizen some extra rules apply. Foreign buyers need to get state permission, and you will need to establish a bank trust if you want to buy in the restricted zone which includes all beachfront properties.
How much deposit do you need to buy a property in Mexico?
The down payment you place to secure your property in Mexico is open to negotiation at the point you’re agreeing the details of your property purchase. Usually the seller will ask for at least 10% of the property value.
Is Mexico a good country to buy property?
Mexico is a popular place to buy property from the US, to live, work, study, retire or vacation. Property can also be an investment used for rentals. Take professional advice before you decide to invest, and get a team on side including a Mexican realtor and lawyer to ensure your property purchase goes through hassle free.
