How to buy a condo in Mexico as an American

Mexico's warm weather, beautiful beaches, and lower cost of living make it a popular destination for Americans buying property abroad. Many foreigners purchase condos for both personal use and as investment properties.

Americans can freely buy condos in Mexico, but properties in certain areas will require you to set up a bank trust called a fideicomiso. It's a common practice, but it'll involve additional steps and costs that you need to understand before moving forward with the process.

Here's everything you need to know about how to buy a condo in Mexico.

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Table of contents
Can foreigners buy a condo in Mexico? How much does it cost to buy a condo in Mexico? Buying property abroad? Send money the hassle-free way with Wise Financing options to buy a condo in Mexico How to buy a condo in Mexico: step by step Best places to buy a condo in Mexico

Can foreigners buy a condo in Mexico?

Yes, foreigners can buy property in Mexico, including condominium units.

However, if you're buying property within 50 kilometers (about 31 miles) of the coastline or 100 kilometers (about 62 miles) from any international border, you'll need to purchase through a Mexican bank trust known as a fideicomiso.¹

The fideicomiso is a 50-year renewable trust that costs approximately 600 USD per year to maintain.¹ You'll need to set it up with a notary during the closing process. This might sound complicated, but many foreigners routinely use fideicomiso to purchase Mexican property.

Another option is forming a Mexican corporation to purchase the property. This approach might be better if you plan to buy multiple properties as investment rentals and operate them as a business.

But for most foreigners buying a condo primarily for personal use, the fideicomiso is the simpler and more appropriate choice.

Does buying property in Mexico give you residency?

Buying a condo in Mexico doesn't automatically make you a resident, but it can qualify you for Mexico's residency by investment program. To be eligible, you typically need to invest at least 220,000 USD in Mexican real estate.²

Without a long-term visa or residency, Americans can stay in Mexico for 180 days.³ So, if you're not planning on permanently moving to Mexico, you can still visit and stay at your Mexican condo for half of the year without needing to become a resident.

Is buying a condo in Mexico a good investment?

Buying a condo in Mexico can be a good investment, but it depends on your property's location and your personal goals.

For example, if you're retiring in Mexico, your condominium unit will need to fit different criteria than a condo you're buying as an investment property to turn into an Airbnb.

Mexican condos are typically much more affordable than apartments in the US. In popular coastal areas like Puerto Vallarta or Playa del Carmen, you can purchase a modern beachfront condo for a fraction of what you'd pay in California or Florida.

Properties in tourist areas also often have strong rental income potential. If you're only in Mexico for part of the year, you could rent your property to generate passive income.

However, property management becomes complicated if you don't live in Mexico full-time, especially in tropical climates where humidity, salty air, and insects can cause maintenance issues. It's also hard to predict whether or not your property will appreciate over time.

How much does it cost to buy a condo in Mexico?

It depends on the location and the type of property you want to buy, but you can generally expect more affordable prices than in the US.

On average, you'll pay about 37,420 MXN per square meter (~1,902 USD) for a condo in a city center and 26,287 MXN per square meter (~1,336 USD) in less central locations.⁴

Luxury properties, especially in prime tourist destinations, will likely cost much more.

Here's a breakdown of prices in areas that are popular with foreign buyers.

City	Price per square meter (city center)	Price per square meter (outside of the city center)
Tulum⁵	57,500 MXN (~2,923 USD)	32,500 MXN (~1,652 USD)
Cancun⁶	32,939 MXN (~1,674 USD)	40,161 MXN (~2,041 USD)
Playa del Carmen⁷	57,927 MXN (~2,945 USD)	140,000 MXN (~7,118 USD)
Puerto Vallarta⁸	69,409 MXN (~3,529 USD)	36,649 MXN (~1,836 USD)
Mexico City⁹	63,109 MXN (~3,208 USD)	44,574 MXN (~2,266 USD)

Puerto Vallarta stands out as the most expensive city center for condo purchases, and Cancun has more affordable city center options.

Playa del Carmen has extremely high prices for properties outside the center, more than double the cost of central properties, likely because of the luxury beachfront developments along the coast.

Condos in less touristy regions of Mexico can be much cheaper. However, most American buyers prefer locations with established expat communities and modern amenities, like Playa del Carmen, which come with a higher price tag.

Consider renting in Mexico before buying to get a sense of what it feels like to live in different areas.

Mexico property taxes and fees

In addition to the condo purchase price, you'll need to budget for the closing costs as well as ongoing property taxes and fees.

Real estate closing costs in Mexico typically range from 4% to 6% of the purchase price, including a 2% transfer tax.¹ These costs are the buyer's responsibility. The sellers pay their own fees and capital gains taxes.

Fee/tax type	Amount
Closing costs	4% to 6% of the purchase price¹
Property tax	0.05% to 1.2% annually¹⁰
Fideicomiso setup (one-time)	500 to 1,000 USD¹
Fideicomiso management (annual)	500 to 700 USD

The property tax in Mexico is based on the cadastral value determined by local authorities, which is often just a fraction of the property's market value. This means even luxury condos may have relatively low property taxes.

Buying property abroad? Send money the hassle-free way with Wise

Now that we covered some of the basics, the only question left is how to send money to pay for your property overseas?

Wise offers you a quick, secure and transparent way of sending money to Mexico. You get the mid-market exchange rate for your payments and see how much is charged for the transfer before sending the money from your bank.

With the Wise Account, you can also hold 40+ currencies, spend money in 150+ countries, and receive like a local in 8+ different currencies.

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Please see Terms of Use for your region or visit Wise Fees & Pricing for the most up-to-date pricing and fee information

Financing options to buy a condo in Mexico

Most people buy property in Mexico with cash. Over 90% of residential purchases in Mexico happen without borrowed money.¹¹ This is different from the US, where most people use mortgages.

That said, there are still some financing options that you might be able to use.

Mexican bank mortgage

Getting a mortgage from a Mexican bank is difficult for foreigners, especially if you're a non-resident. However, it's still possible, but you should be prepared for high down payments and interest rates.

Developer financing

Some condo developers offer their own financing plans, especially for new construction or pre-construction units. However, this financing option typically has short repayment terms with high monthly or lump payments.

Seller financing

You may be able to find a private seller who's willing to offer financing to help sell their property faster. This is not a traditional mortgage, so you can negotiate the down payment, interest rates, and repayment period directly with the seller.

However, this financing option rarely extends beyond a few years.

International mortgage

Some US-based lenders specialize in providing mortgages for Americans buying in Mexico. You may qualify for an overseas mortgage or work with an international lender.

How to buy a condo in Mexico: step by step

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1. Hire a local real estate attorney

Before starting your search, find a reputable Mexican attorney who specializes in real estate transactions for foreigners. They'll help you avoid common pitfalls and make sure that all documents are in order throughout the sale process.

2. Find your property and make an offer

Work with a local real estate agent to find condos that match your goals. When you find the one you like, make a formal offer. Mexican real estate negotiations can be quite different from those in the US and are less formal, so rely on your agent's guidance.

3. Sign the initial sales agreement

Once your offer is accepted, you'll sign a sales agreement (contrato de compraventa). This contract will be in Spanish, but you can request an English translation.

This is also when you'll pay a deposit of 5% to 10% for pre-construction properties or 10% to 20% for existing properties.¹

4. Complete a property inspection

For existing properties, hire a professional inspector to check for structural issues, water damage, electrical problems, and plumbing issues.

5. Make your payment

You'll need to send your payment via a wire transfer according to the schedule outlined in your contract.

Keep in mind that international wire transfers often come with high fees and currency exchange rate markups.

6. Apply for the fideicomiso trust (if in restricted zone)

If your property is in a restricted zone (near coasts or borders), the seller will contact your bank to begin the trust application process. You'll need to cover the setup costs of around 500 to 1,000 USD.¹

This typically happens after you've paid the full balance for the property. At this point, you may be able to take possession of the property, even though the paperwork isn't complete.

7. Pay closing costs, taxes, and fees

Prepare to pay between 4% and 6% of the purchase price in closing costs, including transfer tax, notary fees, and registration fees.¹ Your attorney will guide you through this process to make sure that everything is properly paid.

This step is often more convenient if you've already opened a bank account in Mexico.

8. Sign the final deed

The final step is signing the deed (escritura) at the notary's office. This document officially transfers ownership to you or your fideicomiso trust.

The Public Registry typically issues the final deed within 3 months, but it can sometimes take longer than that.¹

Best places to buy a condo in Mexico

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Tulum

Tulum is a chic destination with appreciating property values. The town is split between the beachfront zone and the more developed town center with traditional infrastructure.

It attracts many wellness tourists willing to pay premium rental rates, which means that you could easily rent out your condo for some passive income.

Cancun

Another Mexican destination popular with tourists and expats, Cancun is easily accessible from the US, with many direct flights available. You'll find high-rise condos with resort-style amenities as well as more affordable options.

Another plus is strong infrastructure with reliable internet, water, and electricity, which is something that can be inconsistent in other beach towns.

Playa del Carmen

Located between Tulum and Cancun, Playa del Carmen is popular with digital nomads. This town is walkable, which appeals to many people, and there's also a large expat community, which means that it's less seasonal than other resort towns.

Puerto Vallarta

Puerto Vallarta attracts an older, wealthier demographic and is popular with retirees.

You'll find perfect warm weather from November through May, exactly when expats come to escape cold winters in their home countries, and more humidity along with occasional rain in the summer.

Mexico City

Mexico City isn't a coastal destination, but buying a condo here might be a good option for you if you're seeking more of a cultural experience.

You also may not need to set up a *fideicomiso *to buy a condo in the city since it's not on the coast or close to the border.

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Americans can buy a condo in Mexico, but it comes with extra steps if you're looking at coastal properties, which are often popular with expats.

Properties near beaches or borders require a trust (fideicomiso) that costs about 500 to 1,000 USD to set up and 500 to 700 USD yearly to maintain.¹

Despite these extra costs, Mexican condos can be a smart investment with strong rental returns.

Most foreigners pay cash since Mexican loans require big down payments and charge high interest rates. But transferring large amounts of money from the US to Mexico comes with additional costs, including international wire fees and currency exchange rate markups.

For an easy way to send money internationally, including large amounts, use Wise. It's fast, simple, and secure with low fees and no currency exchange rate markups.

Sources

1. Beach Please - How to Buy & Own Property in Mexico as an American
2. High Net Worth Immigration - Mexico Residency by Investment in Real Estate
3. US Department of State - Mexico
4. Numbeo - Cost of Living Mexico
5. Numbeo - Cost of Living Tulum
6. Numbeo - Cost of Living Cancun
7. Numbeo - Cost of Living Playa del Carmen
8. Numbeo - Cost of Living in Puerto Vallarta
9. Numbeo - Cost of Living Mexico City
10. Greenback - Does Mexico Have Property Taxes?
11. Mexperience - Routes & Options for Financing a Property Purchase in Mexico

Sources checked 05/15/2025