A loan provided to a foreign buyer to purchase Mexican real estate, typically denominated in USD or CAD and originated by an international or private lender.

A constitutional area where foreigners cannot directly own land (coastal and border zones). Ownership must be structured through a fideicomiso or a Mexican corporation.

A bank trust that allows foreigners to legally purchase property within the “Restricted Zone” (50km/30miles from the coast, 100km/60miles from the border). The bank holds title to the property on behalf of the buyer, who retains all ownership rights, including the ability to sell, lease, or pass it on to heirs.

An alternative to fideicomiso for property ownership, commonly used for commercial or rental properties. Requires more administration and local tax filings.

A government-appointed lawyer with the authority to validate and register real estate transactions. Plays a much larger role in Mexico than in countries like the U.S. or Canada.

The official document recorded with the Public Registry that proves legal ownership of the property.

The government office where property deeds and legal titles are officially recorded.

Capital gains tax on the sale of Mexican property. Foreigners may be eligible for exemptions, but only if the property is their primary residence and proper documentation is in place.

Value-added tax, typically 16%, which may apply to new construction or services like legal or notary fees.

Annual property tax. Generally low compared to the U.S. or Canada.

A formal letter or contract expressing the buyer’s intent to purchase a property at a specific price and terms.

A binding agreement that outlines the terms before the final deed is executed.

An independent valuation of the property’s fair market value, often required for financing or tax purposes.

These include notary fees, registration fees, transfer taxes, trust setup or renewal fees, and sometimes lawyer fees. Depending on which municipality your property is located in, closing costs can range between 5%–9% of your property’s value.