Buying Property as a Foreigner in Mexico’s Coastal Areas

A Complete Guide to Puerto Vallarta Real Estate Ownership for Foreign Buyers

Investing in Puerto Vallarta real estate offers stunning beachfront properties, a vibrant expat community, and strong investment potential. However, foreign buyers must navigate Mexico’s Restricted Zone laws and the fideicomiso (bank trust) system to purchase property legally.

This guide explains everything foreign buyers need to know about acquiring coastal properties in Mexico, ensuring a secure and hassle-free transaction.

1. Can Foreigners Own Property in Mexico’s Beach Zones?

Yes! Foreigners can legally own real estate in Mexico, but properties within 50 km (31 miles) of the coastline or 100 km (62 miles) from national borders fall under the Restricted Zone.

Since direct ownership is prohibited in these areas, foreign buyers must use a fideicomiso (bank trust) to acquire property while retaining full ownership rights.

(Important Note) Related Blog: Understanding Fideicomiso & Real Estate Ownership in Mexico

2. What Is a Fideicomiso & How Does It Work?

A fideicomiso is a bank trust that allows foreigners to own real estate in Mexico’s Restricted Zone while complying with the country’s property laws.

(✔) Bank as Trustee – A Mexican bank holds the property title on behalf of the buyer.
(✔) Full Ownership Rights – Buyers can sell, lease, bequeath, or modify the property.
(✔) 50-Year Renewable Term – The trust can be renewed indefinitely.
(✔) Setup & Annual Fees – Initial setup: $1,000–$1,500 USD, Annual fees: ~$500 USD.

(Important Note) Related Blog: How to Verify a Property’s Legal Status Before Purchase

3. Step-by-Step Guide to Buying Property in Puerto Vallarta as a Foreigner

(✔) Step 1: Find the Right Property
Work with a licensed real estate agent who specializes in Puerto Vallarta real estate to:
(✔) Identify properties already in a fideicomiso (easier process).
(✔) Verify if the property has a clear title & no legal issues.

(✔) Step 2: Make an Offer & Sign a Sales Agreement
Once you find the perfect property, your agent will:
(✔) Negotiate the price & terms.
(✔) Draft a purchase agreement outlining payment terms & conditions.

(✔) Step 3: Apply for a Fideicomiso
Your real estate attorney & notary public will:
(✔) Request fideicomiso approval from a Mexican bank.
(✔) Obtain government authorization from the Foreign Affairs Ministry.

(✔) Step 4: Notary Public Oversees the Transaction
The notary public (Notario Público) plays a key role by:
(✔) Verifying property documentation (title, liens, permits).
(✔) Calculating & ensuring tax payments (acquisition tax, notary fees).
(✔) Registering the property with the Public Property Registry.

(✔) Step 5: Closing & Property Registration
(✔) Final payment is made.
(✔) The fideicomiso is officially established, granting full ownership rights.

(Important Note) Related Blog: Understanding the Notarial & Legal Process for Real Estate Transactions in Mexico

4. Costs & Taxes for Foreign Buyers in Mexico

Buying real estate in Puerto Vallarta comes with additional costs, including:

(✔) Notary Fees – 1–2% of property value.
(✔) Acquisition Tax – ~2% (varies by state).
(✔) Fideicomiso Setup Fee – $1,000–$1,500 USD, Annual fee: ~$500 USD.
(✔) Escrow & Legal Fees – Varies depending on lawyer & real estate services.

(Important Note) Related Blog: The Hidden Costs of Buying Real Estate in Puerto Vallarta

5. Common Mistakes Foreign Buyers Should Avoid

(❌) Buying Ejido Land – Communal land cannot be legally sold unless converted to private property.
(❌) Skipping Title Verification – Always confirm the property is free of liens before purchasing.
(❌) Assuming a Real Estate Agent is Licensed – Work with a certified professional in Puerto Vallarta real estate.

(Important Note) Related Blog: How to Conduct a Legal Property Verification in Mexico

6. Living in Mexico as a Foreign Property Owner

Owning property in Mexico does not automatically grant residency. Foreign buyers can stay under a tourist visa (180 days max per visit) or apply for:

(✔) Temporary Resident Visa – Valid for 1–4 years, allows property ownership.
(✔) Permanent Resident Visa – For long-term stays with no time restrictions.

(Important Note) Related Blog: Navigating Homeowners’ Association (HOA) Rules in Mexico

Final Thoughts: Making a Smart Foreign Investment in Puerto Vallarta Real Estate

Buying property in Puerto Vallarta as a foreigner is 100% legal and secure when following Mexico’s fideicomiso laws. By working with an experienced real estate agency like NuHome Realty Co.®, buyers can confidently invest in Mexico’s coastal properties.

(Contact NuHome Realty Co.) Ready to explore your options? Contact NuHome Realty Co.® today to find your ideal beachfront property in Mexico!

Posted by Cathy Rios on February 16th, 2025

How Foreign Buyers Can Legally Own Property in Mexico’s Beach Zones