It’s no wonder that Mexico is such a popular destination. What comes to mind first when you think about Mexico? Beautiful beaches lined with palm trees, ancient historical sites of the Mayan civilization or cities bursting with fine cuisine and culture? Or maybe all of the above? Over 32m people visited Mexico from the US alone in 2019. Perhaps you were one of them?
When you were lying on a beach drinking a Paloma (Mexico’s most popular cocktail) did you dream of buying your own place and staying forever, or having a holiday home that you could visit throughout the year? You’re not the only one.
In this blog we will look at how you can buy property in Mexico from the US.
Why should I buy property in Mexico?
As well as the beauty of the country itself (are you still thinking about those cocktails?), it might also make financial sense to buy property in Mexico.
Forbes recently reported that the strength of the dollar over the peso has increased by 40% since 2015. This is one of the reasons it has named Mexico as one of the top three overseas property markets.
It’s already the number-one destination for Americans, with more than 2m expats living in Mexico.
Let’s see how you can join them…
Can a foreigner buy property in Mexico?
Yes, foreigners can buy property. You don’t need to be a Mexican citizen to buy property in Mexico. There are some restrictions based on location, but it is definitely legal and doable.
You might have heard that it isn’t possible for foreigners to buy property on the coast of Mexico. The good news is, this isn’t true – it’s certainly possible, including popular coastal destinations such as Cancun and Puerto Vallarta.
However, there’s a different process which involves the creation of a property trust known as a “fideicomiso”. This applies to buying residential properties that are around 50km or closer to the coastline or around 100km from a border.
Though this process is longer and may involve you hiring a notary and a lawyer to help with your purchase, it can be done.
What is the process for buying a property in Mexico?
The process for buying property in Mexico includes:
- Find a property: You can use websites such as mercadolibre.com or point2homes.com but we would also advise visiting a local agent with a good understanding of the market (even better if someone you know can recommend an agent to you).
- Have a sale contract written by your notary: You should also ensure that you fully understand the contract and can get it drawn up in English if this is your preferred language.
- Secure your bank mortgage or “fideicomisio”: A “fideicomisio” will be needed if you are purchasing a property near a border or coastline.
- Sign your contract: Time to put pen to paper.
- Purchase your property and pay taxes: Taxes can include agency fees, acquisition tax, registration fees and title insurance.
There are other steps you should consider taking, such as carrying out an independent survey of your intended property.
It’s possible to buy property in either Mexican pesos or US dollars. There are benefits and drawbacks of paying with each currency.
For example, it may impact upon the taxes you pay when you eventually sell your property. Your real estate broker or agent will be able to provide you with advice about which is the best currency to use.
Where is the best place to buy property in Mexico?
Now you know a little more about the process, you can start thinking about where you would like to own a property.
Have you done your research, visited and spoken to local agents or maybe even spoken to someone you know who owns a property in Mexico? Then you’ll be best-placed to know which area and type of property is right for you.
That might be a villa in the stunning coastal town of Tulum or it might be a beachfront house in Bahia de Navidad. Those of you who have been to Bahia de Navidad will understand why liveandinvestoverseas.com call it one of the best and safest places to buy real estate in Mexico.
Just make sure you know the local regulations, such as the need to use a “fideicomiso” when purchasing coastal properties.
We hope these tips help set you on the way to making your Mexican dreams become a reality. Remember, when you’re visiting properties in Mexico, or even after you’ve made the big move, you can send money via Small World to Mexico and make the most of our great exchange rates.
Our services to Mexico include cash pick-up, where money can be sent for collection at over 11,337 locations across the country. As well as bank deposit where you can send pesos directly to a bank account in minutes.