Real Estate FAQ
Can I own Property in Mexico?
Yes, Americans, Canadians and other non-Mexican citizens may purchase property in Mexico. However, under Mexican law, foreigners cannot own property outright within the restricted zone (See What is the Restricted Zone). Instead, a real estate trust called a Fideiocomiso must be set up to hold title by the foreigner.
I heard that I can only have a 99-year lease of the property
As a non-Mexican citizen you own property through a bank trust called a fideiocomiso. This trust has a 50 year lifespan. At the end of the 50 years, the trust is renewed automatically year-to-year in perpetuity.
What is the restricted zone and can I own property within it?
The restricted zone is 50 km (31 miles) from the coast line and 100 km (62 miles) from the boarders.
You can in fact own property within this zone through a Fideiocomiso or bank trust.
Can I negotiate the price, or do I have to pay asking price?
You can absolutely negotiate with the seller on the price of their property.
You can review the market trends and statistics page to see what the average price off list price is.
Can I get a mortgage to buy property?
Typically Puerto Vallarta is about a 95% all cash-only market, banks are beginning to lend to foreigners to purchase property in Mexico.
While U.S. and Canadian banks do not currently offer loans to purchase property in Mexico, there is a company that will help get you pre-qualified for a loan to buy property in Puerto Vallarta.
Visit the Cross Border Investment page to pre-qualify for a mortgage loan today!
Do you use escrow accounts?
Yes. We set up escrow accounts to ensure that your money is protected when buying property.
How much are closing costs?
Closing costs are usually around 7% of the actual purchase price.
This cost covers:
- Transfer tax
- Trust permit
- Foreign investment registry
- Trustee bank acceptance fee
- Trustee bank first year’s trust fee
- Appraisal for future tax assessment
- non-encumbrance certificate
- Preventative notice advice
- Land registry fee
- notary fee
Who pays the realtor's commission?
The commission is paid for by the seller. Commission is an industry standard 8% plus IVA.
How long does it take to close?
The average closing takes between 30 and 90 days from the acceptance of the offer.
How much do property taxes cost?
Property taxes are around 0.08% of your assessed value each year.