Investment property: Mexico

Updated 6 October 2026

Buying property in Mexico on your side: shortlist, title checks and a turnkey deal.

Mexico is a large and varied market: Mexico City with business and rental demand, the Riviera Maya resort strip - Cancún, Tulum, Playa del Carmen - with tourist rentals, plus the Pacific coast and the colonial cities of central Mexico. Foreigners can buy property, but with one feature: in the restricted zone the purchase is made through a bank trust.

The restricted zone and the bank trust

The trust runs for 50 years and is renewable; through it the property can be rented, sold, rebuilt and inherited. Creating it requires a Ministry of Foreign Affairs permit and an annual fee to the trustee bank. It has been standard practice for decades, not a grey scheme.

How the deal works

• An offer and a deposit agreement with due diligence conditions.
• A public property registry check: owner, mortgages, liens, land status.
• The Ministry of Foreign Affairs permit and a trustee bank, if the property is in the restricted zone.
• Signing before the notary, payment by transfer, tax withholding, title registration.

From deposit to registration usually takes 1-3 months, closer to the upper end in the restricted zone because of the permit and trust.

Purchase costs

• Property acquisition tax - set by the state and municipality, usually 2% to 5% of the price. In Quintana Roo, home of the Riviera Maya, the state law rate is 2%.
• Notary - in Mexico a public notary must formalise the deal, and also calculates and withholds taxes.
• The Foreign Affairs permit and trust set-up - for restricted zone properties.
• Appraisal, certificates of no property tax or water debts, registration in the public registry.

The anti-money laundering law bans cash payments for property above a set threshold, so payment is made by bank transfer.

Taxes on letting and selling

• A non-resident pays 25% of gross rent with no deductions or, by appointing a representative in Mexico and obtaining an RFC, tax on net income.
• Short-term furnished rentals carry 16% VAT and a local lodging tax, and platforms withhold taxes on payouts.
• On sale a non-resident pays 25% of the price or, through a representative, 35% of the gain.
• Property tax (predial) is annual, usually low, and set by the municipality.

Property and residence

A purchase does not give residence automatically, but owning property of sufficient value can support temporary residence based on economic solvency. The threshold is tied to a measurement unit updated every year, so we calculate it on the filing date and plan the purchase and residence together.

Common buyer mistakes

• Buying in the restricted zone without a trust or on a private receipt.
• A new build without checking the developer's land title and permits.
• Communal (ejido) land that cannot lawfully be sold to a foreigner.
• Projecting rental returns without the non-resident 25% tax and VAT.
• Paying cash or into the seller's personal account without a notary.

Can a Russian citizen buy property in Mexico

Yes. Mexico does not restrict purchases by nationality and has not joined Western sanctions, so the general rules for foreigners apply to Russians. Outside the restricted zone a home is held in direct ownership, with the foreigner agreeing to be bound by Mexican law regarding the property. In the restricted zone - 50 km from the coast and 100 km from the border - a flat or house is bought through a bank trust with a permit from the Ministry of Foreign Affairs.

The main difficulty for Russians is money. The anti-money laundering law prohibits paying for property in cash above a threshold, the notary checks the source of funds, and Mexican banks look more strictly at transfers with a Russian link. So the money is held in advance in an account at a third-country bank with a clear history. A purchase does not grant residence automatically; the options are on the page Mexico residence permit.

Home prices by region

Data come from the housing price index of Mexico's Federal Mortgage Company: the national average is for the second quarter of 2026, Mexico City and Jalisco for the first quarter, and growth for the first half of the year. Seaside resort homes cost noticeably more than the state average, and furnished flats for tourist rental cost more than ordinary ones. Amounts in US dollars at the European Central Bank rate of 6 October 2026, rounded up.

Owner taxes: what to pay every year

• Property tax. Set by the municipality and usually modest for housing; paid annually, often with a discount for early payment.
• Trust fee. In the restricted zone the trustee bank charges an annual fee for running the trust.
• Rent. A non-resident pays 25% of gross rent or tax on net income through a representative; short-term lets also carry 16% VAT and a local lodging tax.
• Sale. A non-resident pays 25% of the price or, through a representative in Mexico, 35% of the gain; the notary withholds the tax.

The double tax treaty between Russia and Mexico is in force and Russia has not suspended it, so a Russian tax resident can credit Mexican tax on rent. The Mexican bank account must be reported to the tax office. More on the page taxes in Mexico.

How to buy property in Mexico remotely

In Mexico a deal must be executed by a public notary, and a representative with a power of attorney can sign the contract. The power of attorney is issued at a Mexican consulate or before a notary in the country of residence with an apostille and a sworn translation into Spanish. Through the representative you obtain the tax number, apply for the foreign ministry permit and open the bank trust.

In person you usually come to open a Mexican bank account and arrange residence, if needed. For properties in the restricted zone the path from deposit to registration is closer to three months because of the permit and the trust.

What we do

We choose a property for your goal: rental, own home or preserving capital. We check title, permits, debts and land status, obtain the ministry permit and trust, handle the deal before the notary, calculate rental and sale taxes, help with the RFC and representative and, if needed, tie the purchase to residence.

What we do

• Property shortlist for your investment goal
• Legal due diligence on the property
• End-to-end transaction support
• Ownership structuring (company, trust)
• Property management and letting

See also

Company formation · Business account · Personal account · Country taxes · All country programs

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