FAQ Buying Real Estate in the Yucatan Peninsula

1. Can foreigners buy real estate in Mexico? Yes, foreigners can buy real estate in Mexico, but there are certain restrictions in border areas and coastal zones. That’s called “Restricted Zone”.
2. Do I need to be a resident of Mexico to buy real estate? No, you do not need to be a resident of Mexico to buy real estate.
3. Can I obtain financing to buy real estate in Mexico as a foreigner? Yes, some banks and financial institutions in Mexico offer financing to foreigners to buy real estate in Mexico; however, it is important to note that interest rates in Mexico currently range around 12%.
4. Do I need a lawyer to buy real estate in Mexico? While hiring a lawyer is not strictly necessary, it is advisable to hire a lawyer to advise you in the purchasing process and to verify that the property you are buying has all legal documents in order and, in turn, to support you with the establishment of the trust.
5. Can I buy properties in the coastal zone as a foreigner? Yes, foreigners can buy properties in the coastal zone of Mexico, but special permits from the Secretariat of Foreign Relations (SRE) are necessary; also, you must do it through a trust. You can consult everything about it in our blog.
6. What are the restrictions for buying properties in the coastal zone of Mexico as a foreigner? The law establishes restrictions on the ownership of lands and real estate in the coastal zone of Mexico and the borders, which is called the “Restricted Zone,” which extends 100 km from the border and 50 km from the coast. 
7. Are real estate buyers in Yucatán mostly foreginers? No. Real estate buyers in the Yucatán Península are mostly Mexicans. Foreigner real estate buyers in the area come mostly from U.S. and Canada.
8. Can I sign my contracts for purchasing a property in English or a different language than Spanish? While it is possible to draft private contracts for purchasing a property in Mexico in a language other than Spanish, a certified translation into Spanish is required for legal purposes. All legal proceedings and documentation in Mexico are conducted in Spanish, so having an official translation can help ensure that you fully understand the terms of the agreement and protect your legal rights. 
9. How can I buy a property in the coastal zone of Mexico as a foreigner? To buy a property in the coastal zone of Mexico as a foreigner, it is necessary to obtain a permit from the Secretariat of Foreign Relations (SRE). Subsequently, it is necessary to establish a “fideicomiso” (trust) before a notary public.
10. What is a fideicomiso? The trust transfer of ownership is a legal instrument in Mexico that allows foreigners to acquire the property of real estate located within the Mexican restricted zone. It is a tripartite agreement between a Mexican bank, acting as a trustee, and a foreign buyer, acting as a beneficiary or trustee; as well as the trustor, who is the one who sells the trust property. The trust agreement grants the beneficiary the right to use, sell or inherit the property, while the bank holds legal title to the property. In other words, it is a way for foreigners to own and indirectly control real estate on the Mexican coast.
11. How much does a trust cost? The cost of establishing a trust varies depending on the value of the property and the bank that offers it. Costs may include an opening fee, an annual fee, and a closing fee. Additionally, it is important to consider that initially, you will have to pay around MXN 20,000 for obtaining the permit from the Ministry of Foreign Affairs.
12. What documents do I need to buy real estate in Mexico? You will need your passport, an official ID, proof of address, and in some cases, a permit from the Secretariat of Foreign Relations (SRE). If you are a resident, either temporary or permanent, you will also need to present your CURP and Fiscal Situation Certificate.
13. Can I pay for a property in U.S. Dollars or another foreigner currency?While it is possible to pay for a property in Mexico with U.S. Dollars or another foreign currency, it is not considered legal tender in Mexico. Mexican law requires that all transactions conducted within its borders be made in Mexican Pesos, with some exceptions for certain tourist zones and businessesIf a real estate transaction in Mexico is conducted in a foreign currency, it must be converted into Mexican Pesos at the official exchange rate established by the Bank of Mexico on the date of the transaction for fiscal purposes even if both parties have agreed on the currency. This means that any currency exchange fees and fluctuations in the exchange rate can affect the final cost of the property.
14. What taxes do I have to pay when buying real estate in Mexico? The taxes you have to pay when buying real estate in Mexico include the Real Estate Acquisition Tax (ISAI or ISABI), as well as some other expenses and rights. For commercial properties, consider also the Value Added Tax (IVA).
15. Can I rent out my property in Mexico as a foreigner? Yes, foreigners can rent out their property in Mexico for both short and long-term rentals, but they must register with the Tax Administration Service (SAT) and pay taxes on the rental income generated.
16. Can I sell my property in Mexico as a foreigner? Yes, foreigners can sell their property in Mexico, but they must cancel the fideicomiso with the corresponding bank. Keep in mind that you will also need to pay taxes on the sale.
17. How can I protect my real estate investment in Mexico? It is recommended to hire a real estate lawyer who specializes in Mexican real estate law to assist with the buying process and verify that the property being purchased has all necessary legal documents in order. It is also recommended to work with a reputable real estate agent.