Buying Real Estate in Mexico

Whether you are a first time buyer or a veteran investor in Mexican real estate, InvexCabo is devoted to making your buying experience as comfortable and rewarding as possible.

With proper guidance and understanding of the process for acquiring property ownership in Mexico, you can soon be on your way to enjoying that special place you’ve looked for and found in Los Cabos as an owner.

Here’s a brief primer on Buying real estate in Mexico, followed by answers to some of the most common questions about buying and owning property in Mexico:

In 1973 Mexico amended their constitution with the Foreign Investment Law which allowed foreigners to purchase real estate anywhere in Mexico except the restricted zones of within 100 km (64 miles) of the international borders and 50 km (32 miles) from the coastline. In 1993, in order to help increase foreign investment, Mexico amended their constitution again to allow foreigners to purchase real estate through a Fideicomiso bank trust specifically designed to allow them to buy residential property within the restricted zones with the same types of ownership protection rights as Mexican citizens.

A Fideicomiso trust is setup with a Mexican bank (the trustee), which holds the title in trust for the buyer (the beneficiary) and gives the buyer absolute and irrevocable control over the property with all of the benefits and responsibilities of ownership. The trust never becomes an asset of the bank. The bank simply acts as the trustee to hold the trust for the buyer who is the sole beneficiary of all the rights of use and enjoyment. The initial term of a Fideicomiso trust is 50-years, and thereafter is renewable indefinitely for additional 50-year periods. Fideicomiso trusts can be bought, sold, leased, mortgaged, willed and passed on to heirs for generations. If the property being purchased already has a Fideicomiso, the existing trust may, in most cases, be transferred to the new owner for the remainder of its 50-year period, or more commonly the old trust can be extinguished and a new 50-year trust can be made for the new owner.

The time frame for setting up a Fideicomiso trust and closing on a property, generally takes anywhere from 45 to 90 days depending on the particulars. Fideicomiso trusts generally cost north or south of $2000 to set up, and there is an annual fee of about $450 – $600 depending on which bank is selected for administering the trust each year. All Fideicomiso trusts require authorization from the Ministry of Foreign Affairs before they can be set up and a Mexican notary can formalize them. As in any other real estate transaction, the creation of a Fideicomiso trust requires due diligence being done to check the status of the property, including title search, certificate of no liens and no debt, property tax appraisals, as well as any other requirements under local or state laws for closing the sale. As with any major real estate transaction its always a good idea to have everything reviewed by a competent lawyer and to request a property inspection and survey to insure the physical boundaries and description of the property match those found on the title.

In Mexico, closing costs are always paid for by the buyer, and the seller is only responsible for paying their capital gains tax and any legal fees they personally incur in order to be able to sell the property. The total closing costs including the setup of up a trust, the Foreign Affairs permit, title search, certificates of no lien and no debt, notary & legal fees, and the acquisition tax (2%), generally run about 3.5% to 8% of the purchase price. Closing costs are proportionately more for less expensive properties, and less for more expensive properties. All closing costs and fees are deductible later on, if and when you sell your property, as are any other expenses you may incur for construction or other improvements to the property providing they are documented with legal receipts (Facturas).

For more information about Buying In Mexico, Fideicomiso Trusts, and Closing Your Real Estate Transaction, please contact us.

InvexCabo Real Estate & Development, a full service real estate brokerage, project development, and property management company that is 100% focused on our client’s needs and investment interests.

Whether you are interested in buying or selling property, project development, or managing your investments in Los Cabos, InvexCabo services are designed to always represent your best interests and customized for you to achieve maximum results.


El Encanto Inn
Art & Historic District
Downtown San Jose del Cabo
Morelos #133, SJC, Los Cabos,
Baja California Sur, Mexico 23400

Local Phone
+52 (624) 688-6958
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