How to buy a lot in Mexico as a foreigner

The restricted zone, in plain terms

Article 27 of the Mexican Constitution bars foreigners from holding direct title in the restricted zone: a strip 100 km (62 miles) wide along the borders and 50 km (31 miles) wide along the coasts. Outside that strip, a foreigner buys exactly like a Mexican citizen and the deed is in their name.

The restriction does not stop you from buying. Since the 1970s Mexican law has allowed foreigners to acquire property in the zone through a bank trust, and today the Foreign Investment Law spells out the details. It is how many thousands of Americans, Canadians and Europeans own homes in Cancun, Playa del Carmen, Tulum and Puerto Morelos.

Practically every residential area of Quintana Roo is within 50 km of the coast, so if you are looking at a country club lot in the Riviera Maya, plan on a fideicomiso. Much of Merida's urban area, on the other hand, sits outside the restricted zone, so direct ownership is often possible there.

Bank trust, direct title or a Mexican corporation

Depending on where the lot is and what you plan to do with it, there are three routes. For a home or a lot for personal use near the coast, the bank trust is the standard choice.

Using a Mexican corporation just to hold a vacation home can draw objections from the tax authorities. For personal use, the bank trust is simpler and cheaper over time.

How the bank trust works →

Who can buy and what documents you need

Any foreign adult can buy, whether or not they live in Mexico. You do not need a residency visa or an FM card: you only need to be in the country legally on signing day, even as a tourist, or to sign through someone holding your power of attorney. A Mexican bank account is not required either, although it makes payments easier.

This is what the notary and the bank usually ask for:

• Valid passport. It is your official ID throughout the process.
• RFC (Mexican tax ID). You get it from the SAT, Mexico's tax authority; the notary needs it to close and for future tax payments. A CURP is only issued to foreign residents, so you do not need one if you live abroad.
• Recent proof of address in your home country.
• Marital status. An apostilled and translated marriage certificate if you are married, since Mexico's marital property regimes can affect how title is held.
• Source of funds. Under Mexico's anti-money-laundering law, the notary must identify where the money comes from and how it is paid.
• Successor beneficiaries (for a trust): names and details of the people who will inherit your rights.

The process in seven steps

Buying a country club lot in the Riviera Maya usually takes 30 to 90 days from reservation to signing the deed. The timeline depends mostly on the SRE permit and the bank setting up the trust. There is no escrow company or title insurer by default as in the US: the notary does the title search and holds the process together.

1. Choose the lot and review the club's rules, HOA fees and zoning.
2. Sign a letter of intent or reservation agreement and pay a deposit, normally refundable if the paperwork is not in order.
3. The notary reviews the title, orders the lien certificate (certificado de libertad de gravamen) and checks that property tax and HOA fees are paid up.
4. You choose a trustee bank, and it applies for the permit from Mexico's Ministry of Foreign Affairs (SRE).
5. Sign the purchase agreement or promissory contract, depending on how you pay.
6. Wire the balance, taxes and closing costs.
7. The notary signs the deed and trust and records it at the Public Property Registry.

With developer financing you first sign a promissory contract, and the deed is signed once the lot is paid off. Always ask at what point your rights are recorded at the Public Registry.

The closing process step by step →

What it costs to buy

On top of the price, budget 5 to 8% of the price in closing costs: property acquisition tax, notary fees, appraisal, certificates and registration. As a foreigner in the restricted zone you add the bank trust, with a setup fee of roughly USD 1,500 to 2,500 and an annual fee of roughly USD 500 to 1,000.

A Mexican notario is not a notary public as in the US or English Canada. It is a lawyer appointed by the state who certifies the sale and is responsible for its legality, a role closer to a closing attorney and title company combined. The buyer pays the notary's fees. See the full breakdown in closing costs for a lot in Mexico and what you pay each year in property taxes in Mexico for foreigners.

Buying remotely with a power of attorney

You do not have to fly down to sign. You can grant a power of attorney to a trusted person in Mexico so they can sign the trust and the deed on your behalf. You sign it before a notary in your home country and have it apostilled, or you sign it at a Mexican consulate, in which case no apostille is needed.

The power must be specific to this purchase and, if written in English or French, translated into Spanish by a certified translator. Ask the Mexican notary for the exact wording before you sign at home, so it is not rejected over a missing clause. Payments go by international wire straight to the notary's or the seller's account, never to a middleman.

The site visit can also happen by video call, walking the lot, the access roads and the club amenities in real time.

Common mistakes to avoid

Most problems foreign buyers run into come from skipping steps that are mandatory in Mexico:

• Buying without a notary. A private contract or an assignment signed at a sales office does not make you the owner. Only a deed signed before a notary and recorded at the Public Registry protects you.
• Buying ejido land. Ejidos are communal lands that cannot be sold to outsiders until they obtain full private title (dominio pleno). They are cheap for a reason: they cannot be deeded to you or placed in a trust.
• Paying cash. Mexico's anti-money-laundering law caps cash payments in real estate deals at an amount equal to 8,025 UMA. Always wire funds and keep every receipt.
• Skipping the lien certificate. The Public Registry certificate shows mortgages, liens or lawsuits on the lot. It should be pulled right before closing, not weeks earlier.
• Ignoring the club rules. Build deadlines, height limits and whether vacation rentals are allowed can change a lot's value a great deal. Read them before you reserve, just as you would read HOA covenants at home.
• Signing Spanish documents you do not understand. Ask for a translation or guidance in your language. It is your right, and the notary can work with a certified interpreter.

This guide is for general information. Confirm the details of your case with the notary and, for tax matters, with an accountant in Mexico.

Next step: choose your lot

If you already know you want a lot in a Riviera Maya country club, the next step is to see what is available, compare neighborhoods and go over the club rules calmly. One concrete example is Tulum Country Club, with a golf course, lakes and more than fifteen gated neighborhoods.

We stay with you from the first call to the signing with the notary, in English, French or Spanish, and we coordinate the trust with the bank.

See available lots →