It is increasingly common for foreigners to want to buy a property in Mexico, either as an investment, retirement, or vacation. The weather, culture, natural beauties, gastronomy and human warmth, make Mexico a great place to settle.

In addition, the real estate market in Mexico shows constant growth every year. For foreigners, it is quite accessible to get a property in our country, even in its main tourist destinations, such as the Riviera Maya.

If you are a foreigner and are interested in buying land or property in Mexico, your mind must be full of questions.

Next, we answer the most frequent questions that foreign investors have about buying real estate in Mexico.

Can foreigners legally buy land and real estate in Mexico? Yes! As a foreigner, you can legally buy land and properties in Mexico. The process is simple and easy to understand. If you want to buy land or property in beach destinations, you should know that there is a “restricted zone” which is the land that is 100 kilometers from the border and 50 km from the coastlines. As a foreigner, you can buy in this area, but you must do it through a fideicomiso (bank trust).

What is a fideicomiso in Mexico?

The fideicomiso is a bank trust formalized with a Mexican banking institution and is renewable every 50 years. The bank maintains title to the property, but you, as the buyer, are designated the primary beneficiary and can use or modify it to your liking. You can also rent or sell it and receive 100% of the profits.

Also, you can name substitute beneficiaries in the trust so that the property rights pass to them in case you die.

Are there financing options to buy real estate in Mexico as a foreigner?

Yes, several financial institutions offer options to foreigners who want to buy real estate in Mexico. The procedure is simple, and the interest rates are pretty competitive.

Additionally, we at Riviera Tulum offer 24-month interest-free financing to purchase our residential and commercial lots.

How long does the process of buying a property or land in Mexico take?

The total time may vary depending on where you make the purchase. But, to give you an idea, it can be between 60 days (if you make the purchase in cash) and 90 days (if you make the purchase with financing).

What are the closing costs in Mexico? Closing costs in Mexico are calculated very differently than in other countries. The most significant expense is the Property Acquisition Tax, which is mandatory (for both nationals and foreigners) and usually is 2% of the purchase price. The percentage may change depending on the state in which you buy the property. In closing costs, you also must consider the costs of permits, certificates, notary fees, among others. In total, closing costs generally add up to between 4% and 6% of the purchase price of the land or property.

Do foreigners need a temporary resident visa to buy property in Mexico?

Any foreigner, even with a tourist visa, can buy a property in Mexico. By signing a property purchase contract, you are no longer considered a tourist and then you can apply for a temporary resident visa. But, if you want, you can do this after acquiring the property. You do not need to have it to make the purchase.

Which is the best place in Mexico to make a real estate investment?

Although Mexico has different areas that are an excellent option to live and invest in properties, the Riviera Maya is still the best place to do it.

This paradisiacal area of ​​the Mexican Caribbean has the country’s fastest economic and real estate growth rate. In particular, Tulum shows a constant rise in its numbers, mainly due to tourism that doesn’t slow down, even in times of global crisis. If you buy a property in this area to rent it when you are not using it, you can expect an annual return of around 8 to 14%.

If you want to make a real estate investment in Mexico, you should consider doing it at Tulum. In Riviera Tulum, we have residential and commercial lots within an exclusive development located in the middle of the jungle and a few minutes from the paradisiacal beaches of Tulum.

Contact us today! It will be a pleasure to answer all your questions and help you make the best real estate investment in Mexico.