Is it legal for a foreigner to own property in Mexico?
Yes, foreigners can own property in Mexico. Much of the sought after real estate in Mexico falls within the restricted zone and requires a bank trust (fideicomiso).

What is a fideicomiso and why is it important?
A fideicomiso is a bank trust which is renewable every 50 years. It is similar to a deed of trust in the United States. Many borrowers buy in Mexico without obtaining a fideicomiso and either pay a mortgage directly to the developer or to a seller. This is dangerous since the borrower does not have legally recorded ownership of the property.

Who is the notario publico?
The notario publico is a government position of high power. Among the numerous responsibilities of a notario publico is the handling of land disputes, recording of real estate transactions and determining property taxes.

What is the transfer tax?
Although it can vary by state, most real estate transactions (purchases and refinances) require a 2% transfer tax. Although this can seem steep, one must consider that annual property taxes are much lower in Mexico than in the US.

Does Mexico have a capital gains tax?
Yes. Our closing coordinator can help figure out what this will run, although the notario publico will be the one who determines the final figure.

Is title insurance required?
No, but it is strongly encouraged. Some of our lenders require it and we prefer that all borrowers obtain it.