1. Understanding Fideicomiso (Bank Trust)
Foreign buyers purchasing property in Mexico's restricted zone (within 50km of the coast or 100km of borders) must use a fideicomiso — a bank trust where a Mexican bank holds the title on your behalf. You retain full rights to use, rent, sell, or inherit the property.
2. Closing Costs in Mexico
Buyer closing costs in Mexico average 5-8% of the purchase price, including: notary fees (2-3%), property acquisition tax ISAI (2-4%), appraisal (0.5-1%), registration fees (0.5-1.5%), and fideicomiso setup (~$2,000 USD) if applicable.
3. Restricted and Unrestricted Zones
Mexico's restricted zone covers areas within 50km of any coast and 100km of any border. In unrestricted zones, foreigners can own property directly through a Mexican corporation or in their own name.
4. Financing in Mexico
Mexican bank mortgages are available but typically have higher interest rates (9-13%). Many foreign buyers finance through home equity loans in their home country or purchase in cash.