Yes. US citizens can legally buy and own real estate anywhere in Mexico, including the Riviera Maya, Los Cabos, Puerto Vallarta, and any other coastal area. You do not need Mexican residency, you do not need to give up your US citizenship, and you do not need a Mexican partner. What you do need is the right legal structure for the property's location.
The rule is simple: anywhere within 50 kilometers of a coastline or 100 kilometers of an international border (the zona restringida, "restricted zone"), foreigners hold property through a bank trust called a fideicomiso. Everywhere else — inland cities like Mérida, San Miguel de Allende, and Guadalajara — foreigners take direct title just like Mexican citizens.
The legal basis
Article 27 of the Mexican Constitution restricts foreign ownership of land near the coasts and borders. The original rationale (1917) was national security. In 1973 the Foreign Investment Law created the fideicomiso as a legal workaround, and in 1994 NAFTA cemented foreign-buyer rights. Today over 1.5 million properties in Mexico are foreign-owned through fideicomisos — the majority by US citizens.
You will hear noise about laws "changing" or foreigners being banned. There is no serious proposal in Mexican Congress to revoke the fideicomiso. The trust system generates significant federal tax revenue (SRE permit fees, notary registration) and the constitutional restriction itself has not been amended in 50+ years.
Documents you need as an American buyer
- Valid US passport. Must have at least 6 months remaining. Apostilled birth certificate is sometimes requested by certain banks but not always.
- Tourist visa (FMM) or residency card. A simple tourist entry stamp is enough to close on a property. You do not need to be a Mexican resident.
- Proof of funds source. Bank statements from the past 3-6 months. Required under Mexico's anti-money-laundering law (LFPIORPI). Cash purchases over roughly $35,000 USD trigger enhanced due diligence.
- RFC (Mexican tax ID). Not strictly required to buy, but you will want one for property tax payments and any future rental income. Free to obtain at any SAT office; takes one visit.
- CURP. National ID number. Required for some banks and notaries. Obtained through the Mexican consulate in the US (free) or in-country (free).
You do not need a Social Security equivalent, you do not need a Mexican credit history, and you do not need a co-signer.
The buying process step by step
- Find the property and negotiate price. Most coastal listings are priced in USD; some inland in pesos. Offers are usually written through a Mexican real estate agent (no MLS in most areas — agents share listings informally).
- Letter of intent and earnest money. Typically 5-10 percent of price held in a neutral escrow account. Never wire deposits directly to a seller; use an escrow service (Stewart Title Mexico, First American Title, or the notary's trust account).
- Title search and due diligence. Your notary or a separate lawyer pulls the property's certificado de libertad de gravámenes (clean-title certificate), confirms predial (property tax) is current, and checks for ejido (communal land) history.
- Apply for SRE permit and open fideicomiso. Only for restricted-zone properties. Takes 15-45 business days. Cost: $1,200-$1,700.
- Sign promissory contract (contrato de promesa). 10 percent deposit released to escrow.
- Close at the notary. All parties sign. Funds wire to the seller. The notary collects taxes and registers the deed. You walk out with a copy of the escritura (deed).
- Title registration. The notary files at the Registro Público de la Propiedad. Final registered copy is typically delivered 30-90 days later.
Total time from offer to closing: typically 60-90 days with a fideicomiso, 30-45 days for direct ownership outside the restricted zone.
Closing costs: what to actually budget
Budget 7-10 percent of the purchase price for closing costs in addition to the purchase price itself. For a $400,000 USD home in Playa del Carmen that is $28,000-$40,000 USD in fees and taxes.
| Line item | Typical range | Paid by |
|---|---|---|
| Notary fees | 4-7% of price | Buyer |
| Acquisition tax (ISABI) | ~2% of assessed value | Buyer |
| Public registry fee | 0.2-0.5% | Buyer |
| Fideicomiso setup | $2,000-$3,000 USD | Buyer |
| SRE permit | $1,200-$1,700 USD | Buyer |
| Title insurance (optional but recommended) | 0.5-0.7% of price | Buyer |
| Real estate commission | 5-8% | Seller (usually) |
Financing: cash, US HELOC, or Mexican mortgage
Most foreign buyers pay cash. About 70-80 percent of Riviera Maya transactions to foreigners are all-cash. Reasons:
- Mexican mortgages to foreigners exist but are expensive: 9-12 percent annual rates in 2026 versus 6-7 percent US conforming rates.
- Down payments are typically 35-50 percent for foreign borrowers.
- The mortgage adds 1-2 percent in additional closing costs and 30-60 days to the timeline.
Most US buyers either pay cash, take a HELOC on their US primary residence (rates 7-9 percent, no Mexican paperwork), or use developer financing on pre-construction (typically 0 percent interest, 30-50 percent down, balance over construction period of 18-36 months). Developer financing is common in Tulum and Playa del Carmen for off-plan condos.
Tax obligations after you buy
Owning Mexican property creates a few annual obligations:
- Predial (property tax). Cheap by US standards: typically $200-$1,500 USD per year on a $400,000 home. Paid annually with a 15-20 percent discount if paid in January.
- Income tax on rentals. If you rent (Airbnb, long-term), Mexico taxes the income. Non-residents pay 25 percent flat on gross rental income. Residents on the resico simplified regime can pay as low as 2.5 percent on gross.
- IVA (VAT) on short-term rentals. 16 percent on rental fees for stays under 30 days. Airbnb collects and remits this automatically in most cases.
- US reporting. A fideicomiso has historically been treated by the IRS as not a foreign trust (Rev. Rul. 2013-14), so no Form 3520. But rental income is reportable on Schedule E. Foreign-bank accounts holding rental income may trigger FBAR (FinCEN 114) if over $10,000.
If you rent the property out you will want to obtain Mexican residencia temporal and an RFC to access the simplified tax regime. See retiring in Mexico for the residency pathway.
Selling later: capital gains
When you sell, Mexican law applies ISR (Impuesto Sobre la Renta) to the gain:
- Non-residents: 35 percent on the gain, or 25 percent of the gross sale price — whichever is lower.
- Residents with primary-residence proof (utility bills in your name, residency card, RFC) and a holding period of 3+ years: exemption up to roughly 700,000 UDIs (about $250,000 USD as of 2026) of gain.
The exemption is per-person and per-three-year period — couples filing jointly can double it. This is one of the biggest financial reasons to obtain residency before selling.
Common mistakes to avoid
- Wiring deposits to a seller's personal account instead of escrow.
- Skipping the title search on land or off-plan condos.
- Buying ejido land that has not been fully converted to private title.
- Using the seller's "preferred" notary instead of picking your own.
- Paying closing costs in cash without receipts (closing must go through the notary's trust account for tax purposes).
- Forgetting to file the annual predial tax (the property can be liened).
Last updated 2026-05-12. Consult a Mexican notary public (notario público) before transacting — this guide is not legal advice.
Frequently asked
Common questions
Can a US citizen own a house in Mexico outright?+
Yes. Outside the restricted zone (more than 50 km from any coast and 100 km from any border), a US citizen can hold direct title. Inside the restricted zone — which includes all coastal Riviera Maya, Los Cabos, and Vallarta — ownership is held through a 50-year renewable bank trust called a fideicomiso, with the buyer as full beneficiary.
Do I need to be a resident of Mexico to buy property?+
No. A US tourist entry stamp (FMM) is enough to close on a property. Residency is not required for the purchase itself. However, getting Mexican residency (temporal or permanente) makes future tax obligations cheaper — especially the capital gains exemption when you sell.
What are total closing costs for an American buying in Mexico?+
Budget 7-10 percent of the purchase price. For a $400,000 USD home that is $28,000-$40,000 USD on top of the purchase price. The biggest line items are notary fees (4-7%), acquisition tax (~2%), fideicomiso setup ($2,000-$3,000), and SRE permit ($1,200-$1,700).
Can I get a mortgage in Mexico as an American?+
Yes, but it is expensive — 9-12 percent annual rates in 2026 with 35-50 percent down. Most US buyers pay cash, take a HELOC on a US primary residence, or use developer financing for pre-construction. Developer terms are usually 30-50% down with the balance paid during a 18-36 month build period.
How long does buying property in Mexico take?+
Typically 60-90 days from accepted offer to closing for a fideicomiso purchase, and 30-45 days for direct ownership outside the restricted zone. The slowest step is the SRE federal permit, which takes 15-45 business days.
What happens if Mexico changes the law on foreign ownership?+
No serious proposal exists to revoke the fideicomiso. The system has been in place since 1973 and was reinforced by NAFTA in 1994. The Mexican government collects substantial fees on the trust system. Even hypothetical changes would almost certainly grandfather existing trusts.
Can two Americans buy a Mexican property together?+
Yes. The fideicomiso can name multiple primary beneficiaries (joint owners) and multiple substitute beneficiaries (heirs). Married couples typically hold jointly; unmarried co-owners usually specify percentages in the trust deed.