How to Buy Property in Mexico as a Foreigner

The basics

What is a fideicomiso?

Mexico's constitution restricts direct foreign ownership within 50km of the coast and 100km of international borders — this is called the "restricted zone." Puerto Vallarta falls within this zone. But a legal mechanism called a fideicomiso (bank trust) allows foreigners to own property here with the same rights as any Mexican citizen.

Mexican bank holds title

A Mexican bank (trustee) holds the legal title to the property on your behalf. You are the sole beneficiary.

You have full control

You can use, rent, renovate, sell, or pass the property to heirs — exactly like owning it outright.

50-year renewable term

The trust lasts 50 years and is renewable indefinitely. It transfers automatically with any sale.

Common misconceptions

Myths vs. reality

Most buyer hesitation comes from misinformation. Here's what's actually true.

Myth

"The Mexican government can take my property at any time."

Reality

The fideicomiso is a legally binding trust protected under Mexican law. Your rights are the same as any property owner.

Myth

"The bank owns my property and can sell it without my permission."

Reality

The bank acts purely as a trustee and has no authority to sell, rent, or modify the property. All decisions are yours alone.

Myth

"I can't pass the property to my children."

Reality

You can name heirs as trust beneficiaries. The property transfers without probate — simpler than in most US states.

Myth

"The process is too complicated for a foreigner to navigate."

Reality

With an experienced local realtor and a bilingual notario, most buyers close in 30–60 days. Thousands of Americans and Canadians do this every year.

Step by step

The buying process in Puerto Vallarta

From offer to keys, here's exactly what happens and when.

Step 1

Find your property & make an offer

Work with a licensed local realtor (like James) to identify properties that match your lifestyle and budget. Once you find the right one, a formal written offer is submitted. Counteroffers are common — negotiations typically wrap in a few days.

1–2 weeks

Step 2

Promissory agreement & deposit

A promissory purchase agreement (contrato de promesa) is signed by both parties. You deposit 10% of the purchase price into escrow to secure the property. This is held by a neutral escrow company — not the seller.

1 week

Step 3

Due diligence & title search

A Mexican notario público (a government-appointed attorney) conducts a thorough title search to verify ownership, confirm no liens or encumbrances exist, and validate property boundaries. This is the most important step — and the notario works for neither buyer nor seller.

2–4 weeks

Step 4

Fideicomiso permit & setup

Your notario applies to the Mexican Ministry of Foreign Affairs for a permit to establish the fideicomiso. A Mexican bank is selected as trustee. This process runs in parallel with due diligence and typically takes 2–3 weeks.

2–3 weeks

Step 5

Closing & title transfer

Both parties sign the deed (escritura) before the notario. Remaining funds are released from escrow. The notario registers the new deed with the Public Registry. You can be present in person or sign remotely via power of attorney.

1 day

You're done

Keys in hand — you own your PV property

Total typical timeline: 30–60 days from accepted offer to close. Most buyers find the process simpler than purchasing real estate back home.

Typical total: 30–60 days

Know your numbers

Typical closing costs

Closing costs in Mexico are paid by the buyer and are higher than in the US or Canada — plan for 5–8% of the purchase price. Here's the breakdown.

Acquisition tax

2–3%

One-time government transfer tax on the property value.

Notario fees

1–1.5%

Includes title search, deed preparation, and registration.

Fideicomiso setup

$1,000–$1,500

One-time fee to establish the bank trust.

Annual trust fee

$500–$700/yr

Annual maintenance fee paid to the trustee bank.

Escrow fee

0.5–1%

Neutral third-party escrow for deposit and final funds.

Predial (property tax)

~0.1%/yr

Annual property tax — a fraction of US/Canadian rates.

Common questions

Frequently asked questions

More free tools

Keep exploring

Neighborhood match quiz

Find your perfect PV neighborhood in 5 questions

Cost of living calculator

Compare PV to your US or Canadian city

Ready to take the next step?

Get a free, no-pressure consultation with James. He'll walk you through the process, answer your questions, and help you find the right property for your goals.

You're all set!
James will reach out within 24 hours to schedule your free consultation.
Questions right now? Call or WhatsApp: +52 551 020 6431

James Nash · Puerto Vallarta Real Estate

+52 551 020 6431 JamesNashRealtor@gmail.com

This guide is for informational purposes only and does not constitute legal advice. Consult a licensed Mexican notario or attorney for guidance specific to your situation. Costs and timelines are typical estimates and may vary.