Can Foreigners Buy Houses in Mexico?
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- เผยแพร่เมื่อ 8 ก.พ. 2025
- Maybe people looking to retire in Mexico are interested in owning property in Mexico. But there's a lot of confusion about whether foreigners can own property in Mexico. The good news is that it's totally possible. It's just a little different depending on which part of the country you're buying in. And this video will explain it all!
The Mexican Constitution restricts foreign ownership of property. But like all things in Mexico, there's a way around this. And this way around is totally legitimate too! A trusted real estate agent can help.
Gordon Wilson, realtor with Baja Life Realty walks Fideicomisos with us. bajaliferealty... or gordon@bajaliferealty.com
A Fideicomiso is a bank trust that allow foreigners to buy property within 100km of the international borders and 50km of the ocean. They add some cost to the closing and also have a recurring annual fee of around $500USD. But owning a home in Mexico is affordable compared to similar places in the America or Canada.
It's also possible to form a Mexican corporation to own property. But this is more common for larger parcels (bigger than 1/2 acre) or when someone is buying multiple properties.
In the interior of Mexico, foreigners only need one form to buy property. (agreeing that they will be treated just like Mexicans.)
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Thanks for posting this video... I have lots of questions about buying property in Mexico. This helped to answer a lot of things I was curious about... Plus I think good emphasis on just being patient with the process in order to get it all right.
@hivolco151 Yes - nothing gets done in Mexico without patience ;-)
Great info
Our annual vacation, we go down to Los Barriles. When I retire I was thinking of living down there.
Thanks again and you have a cool channel
Thanks much! Los Barriles is great. We take a trip there at least once or twice a year.
AWESOME! Thank you so much Brighton for inviting me to participate! I'm super grateful for the endorsement & visibility! ❤
Thank you Gordon for sharing this info - it’s a pretty common question for people just starting to think about Mexico.
I could’ve listened to the two of you talk about this more in depth.
Good relaxed setting and simple talk about complicated situations 👍🏻
Any chance you two do another sit down?
@jonerickson580 Glad you enjoyed it!
Maybe next time I can get Gordon to talk about those fashionable shirts he wears!
What other topics would you like us to cover?
Yes to Gordon. We've already touched base with Gordon and have been very happy with his answers. I think whether it be La Paz Mexico or Santorini in Greece you'd need someone like Gordon in your corner to help navigate the process. Thanks Mr B and Go for Gordon. P n D
Gordon could probably hook you up in Greece too. The man has lived everywhere!
Hahah thanks Dave!!! Awesome endorsement!!
@@GordWilsonsBajaLife Deserved ! New catch phrase ? Go For Gord or Gordo or Gordon ? No charge. LOL P n D
@@davebaker489 😁
@@AlmostRetiredinMexico That's the problem with being Canadian, you're welcomed almost everywhere. 😇🍁
Also…if anyone watching this video is thinking about buying a home or land in BCS/La Paz area, please do yourself a favor and connect with Gordon!! We could not have found a better real estate agent!!! ❤
@pbjsilverstudio4882 I didn't realize that Gordon was your agent! That's perfect. Hopefully you weren't the super-slow closing that he mentioned ;-)
@@AlmostRetiredinMexico @pbjsilverstudio4882! WOW thank you both for this!! xoxo🥰
@@AlmostRetiredinMexico jajaja!!! We were at one of your meet ups in El Centenario back in January. I asked you who your agent was and Gordon had arrived just before and you introduced us. We sure didn’t expect to but a house but when you know you found the one…house, not agent. Jajaja!!! Actually, we found THE house with THE best agent!! Thanks for the referral!
@@pbjsilverstudio4882 So glad it worked out for you! Those real estate agents are tricky - you go to them with zero intention of buying a house and all of a sudden you've signed your closing documents. Jaja
@@AlmostRetiredinMexico 😆
I think it's significant how the US IRS has classified Fideicomisos. They issued a formal legal opinion on the Fideicomiso several years ago. In that opinion they stated that the person, in whose name the bank buys the property, has such full control of the property that it doesn't even qualify as a trust under the US definition of a trust. In their eyes, the person has full outright ownership rights.
Interesting. Good to know. I'm assuming that has some kind of tax implication tho...
@@AlmostRetiredinMexico If nothing else, you can write-off receipts of house expenses (not maintenance/upkeep) against any future capitol gains, eh? That’s a good thing! Also maybe write off mortgage interest, for those finding a loan the way to go…
@@eugeniebreida You can definitely write off capital improvements. But you need to track them with your Tax ID number. It's an interesting system. When you buy something at a hardware store, they always ask if you need a receipt or a tax receipt. Confusing at first.
I'm not sure about mortgage interest. Mortgages aren't common here. Most Mexicans either pay cash (and build slowly when they have money) or get a "loan" through their work. It's kinda like our 401K programs.
so, all the fees included are bundled into the closing cost? and are all Legal (lawyer fees) also included in the closing cost "BUNDLE" (just tryna get an idea of the fees invoked and how they are collected here.
help ...
Super informative B dawg. thanks!
I'll inform, you entertain ;-)
You can lose your house if you block the public access to the beach or if you lease property for more than ten years.
Tell me more about the 10 year lease part? Why would someone lease property?
@@AlmostRetiredinMexico In the past owners of property near or on the beach in upper baja, would lease their land to Americans for a period of years up to 99yrs. But contracts in Mexico regarding land are only enforceable in court if the contract is for less than 10 years.
@howardchestnut5782 Ahhh... that makes sense. I've heard lots of folks talking about leased land in Mexico - this must be the origin.
I just bought a house and the all the fees for 85,000 pesos or a little more than $4,000
Thanks Lenny. Does that include the 2% acquisition tax? Can you share the cost of the house?
It was smart posting this on April 2 instead of yesterday so no one would think it was an April Fool’s joke. 😂
Closing here is more expensive and takes longer than in the USA. You don’t have to have residency to be a buyer, but if you own a home it would give you more certainty about being able to spend as much time here as you’d like instead of worrying how many days the agent issuing your FMM grants you.
@mindmachinemedia Thanks! It's wonderful being able to be in Mexico whenever we want. But there's also a benefit to renting. I know folks who move to a different city each winter.
@@AlmostRetiredinMexico great point! The flexibility and freedom to move around would be wonderful and there’s so much amazing beauty in Mexico to experience. I’m happy home ownership is available too to provide a stable home base for those that desire it.
Buen video amigo bienvenidos a Mexico 🇲🇽 que está pasando en usa 🇺🇸 muchas personas retirados están en todo Mexico is ok welcome to Mexico
Muchas gracias Néstor!
Thanks for the video/info. Question....Is this the same process in Rock Point, MX? And if I do everything correctly, is there any scenario in which the MX Government can just take my property? That's what I'm most concerned about.
Thanks-
Great video. Thank you. What happens if the bank that has your fidecomiso fails? Could you lose your property?
If the Bank Trust goes bankrupt or goes out of the market for an unexpected reason, then all the fideicomisos of that specific Bank Trust will be assigned to another Bank without the approval of the beneficiaries of the fideicomisos. The fideicomisos are not considered an asset of the Bank Trust and for this reason if the Bank goes bankrupt, the creditors can not go after the properties hold in trust (fideicomisos).
i have a house in la paz, i would love to move to la paz but i would need to find a job lol
@edgarmedina5704 Find an online job - then you can work from anywhere!
if you pay cash for your house, do YOU own or the BANK own it? Does the bank just act as an intermediary? Or is the Bank own it in their trust>>?
It's all legalese. I think technically the bank owns the house, but you are the only one with a legal right to the house. Most people pay cash for their houses in Mexico.
@@AlmostRetiredinMexico I would pay cash of course….we are considering Mazatlan or La Paz at this point.
Not everyone has a mortgage in the USA
Sorry if I implied that. You are right.
So I can’t buy a vacant lot property in La Paz?
I think you can, right @gordonwilsonbajalife? I’m not sure if they really tagged him. Check the description for his contact info for a definitive answer.
At 0:58, the bank buys the property in your name. Then that means that the bank really owns the property and not you right?
At 4:12, you said that when you bought a house, the previous bank that owned the fridecomiso stopped offering the fridecomiso. Does this mean that if you buy a house (meaning you go through a bank and a fridecomiso), sometime later the bank can stop offering the fridecomiso, which definitely means you don't own it anymore? That's outright confiscation. Can that happen? If so, do they even give you your money back?
I guess it's like any trust in the US. A bank is the official holder of the money or property, but only the beneficiary has access.
I'm guessing this is like the US. If a bank decides not to offer mortgages anymore, they sell your mortgage to another bank. In Mexico, HSBC stopped offering fideicomisos, but they kept the existing ones. That was the case for the previous owners of our house.
@@AlmostRetiredinMexico Thank you.
How is Gordon able to be a real estate agent in Mexico? Can anyone moving to Mexico become a real estate agent?
Yes. You need a work permit. And you need to pass some tests to get a license to sell real estate. Not sure what else is required.
Guys, do not believe that a trust will protect your investment in Mexico. I purchased a home there and married a Mexican citizen after. We divorced two years ago, she is now suing me for 50% of my property. Despite numerous court appearances, Banco Monex, which initially assured me of the property's security, is now requiring me to defend my ownership, so anyone can sue you for your property.
That sucks!
But I think "my Mexican ex-wife" is a little different than "anyone."
It seems that your principal family residence has a special status in marriage law in Mexico. So even if the trust is in your name, your ex-wife who lived in that home *may* have some legal rights to it. It's not a trust issue, it's a marriage issue.
It looks like it's for the lawyers and judges to figure out. I wish you the best!
So, once one gets citizenship, can one own property outright?
Yes
After closing docs were JUST signed on our house and THEN you post a video with this title?!?!?! Way to go with the scare! Hahahahahahahaha!!!
No, actually, we knew we were cool.
And Brighton, even if you OWN your house free and clear in the states, if you don’t pay you property taxes, you can still lose your home. 😉
Congrats on your closing!
You're right. There are ways to lose your house in the US. Nothing is certain in either country. Except the price of margaritas. You can be certain that the price of margaritas is less in Mexico!
Yaaaay!! I HAVE YOUR KEYS!! WOOHOO!!
@@AlmostRetiredinMexico jajajajaja!!! True!
People if at the end of a sale of a home you still have a monthly fee or tax you don't own that home ok if you don't have to pay taxes once you have bought the home then it's yours please let's stop playing dumb
Hmmm... so if you have a mortgage, then you don't own your house? If you have a car loan, then you don't own your car? If you charge your clothes to your credit card and carry a balance, you don't own your clothes.
OR... you own these things, but you have a contract with someone to pay for them over time. As long as you follow the contract, it's yours. Unlike renting a house where you clearly only have access to it for the terms of the contract. You could live there for 25 years and then the landlord could say, "thanks for all the rental payments, I'm going to rent to someone else now."
Can you get a mortgage in Mexico?
Yes - but it's complicated. To get a Mexican mortgage, you need a credit history in Mexico. And then the rates will be very high. There is some company in California (I think this one: www.globalmortgage.mx/) that offers mortgages for US citizens in Mexico. I don't know about their rates.
Let's buy all of mexico
The US has already "bought" a good chunk of it.
Who are "they"?
"They" are the scary people that folks from the US worry about. In this case, probably government.
sounds like a nightmare….
It's really not something you ever need to think about. It's kinda like the other stuff that happens during closing on a house. Your agent / lawyer handles it all.
I'm with you!!!