How to Buy Property in Mexico as a Foreigner: Trusts, Financing & Legal Tips
Investing in real estate in Mexico has become increasingly popular among U.S. and Canadian buyers, and Los Cabos stands out as one of the most attractive markets. However, purchasing property as a foreigner comes with a unique legal structure known as a *fideicomiso (bank trust)*. Understanding this process is key to making a safe and profitable investment.
Step 1: Understand the Fideicomiso (Bank Trust)
Foreigners cannot directly own land within the restricted zone—which includes all coastal areas within 50 km (31 miles) of the shore. Instead, properties are purchased through a *fideicomiso*, a bank trust that grants you all ownership rights:
* Sell, lease, inherit, or build on the property.
* The trust is valid for *50 years*, renewable indefinitely.
* You remain the legal beneficiary, not the bank.
Step 2: Financing Options for Foreign Buyers
Unlike in the U.S., traditional mortgage options are limited in Mexico. However, you still have several alternatives:
* *Cash Purchase* – The fastest and simplest method.
* *Mexican Bank Loans* – Available to foreigners, usually with higher down payments.
* *Private & Developer Financing* – Many developers in Los Cabos offer direct financing with flexible terms.
* *Cross-Border Financing Companies* – Specialized lenders like MexLend work with U.S. and Canadian buyers.
Step 3: Legal Due Diligence
To protect your investment, work with a trusted real estate broker and an attorney who will:
* Verify property titles and the absence of liens.
* Review the *escritura pública* (public deed).
* Ensure compliance with *NOM-247* (Mexican consumer protection standards for housing).
* Assist in the creation of your fideicomiso contract with a Mexican bank.
Step 4: Closing the Deal
The process usually takes *45 to 60 days*, depending on the complexity of the transaction. Key steps include:
1. Signing the purchase agreement.
2. Bank trust setup and approval.
3. Notary Public formalization.
4. Registration at the Public Registry of Property.
Pro Tips for Foreign Investors
* Always use a *certified real estate professional* registered in the MLS BCS.
* Ask about *closing costs* (usually 4–7% of the property price).
* Consider long-term ROI through *vacation rentals* in high-demand areas like Cabo San Lucas and San José del Cabo.
* Work with brokers familiar with both Mexican and international clients.
Conclusion
Buying property in Mexico as a foreigner is not only safe but also highly profitable when done correctly. The *fideicomiso structure*, combined with professional legal guidance and strategic financing, makes it possible for investors from the U.S. and Canada to confidently own a piece of paradise in Los Cabos.
