Buying a house in Mexico: the restricted zone, the fideicomiso and the acquisition tax per state
Within a hundred kilometres of the border and fifty kilometres of the coast a foreigner may not own land in Mexico. You buy there through a fideicomiso: a bank holds the title, you have the use, the right of sale and of inheritance, fifty years and renewable. Outside that you buy in your own name, after a declaration at Foreign Affairs. Everywhere you pay the acquisition tax of the state, from 2 to 4.5 percent.
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Written and checked by Auke on , against the sources at the bottom. Is something no longer right? Report it below and I'll fix it.
Yes, as a foreigner you can buy a house in Mexico. How depends on the place:
- On the highlands you buy in your own name.
- On the coast you buy via a fideicomiso, a trust at a Mexican bank.
Within fifty kilometres of the coast and a hundred kilometres of the border, article 27 of the constitution forbids you direct ownership of land. There a bank holds the title, and you have the use, the right of sale and of inheritance. That runs for fifty years and is renewable.
What it costs: the state's acquisition tax of 2 to 4.5 per cent, plus notary, valuation and registration. Together that is 5 to 9 per cent. On the coast the bank's fideicomiso costs come on top.
The trap: the notary here is a public official, not your adviser. Whether the seller really is the owner and whether the plot isn't ejido land (collective land that isn't freely saleable) is a question you put to a lawyer of your own.
In your first year you don't buy. You rent, you get to know the area, and only then do you decide. Read why that order is fixed. This article is for the moment you are that far.
How do I buy on the coast, in the restricted zone?
Article 27 of the Mexican constitution forbids foreigners the direct ownership of land within a hundred kilometres of the land borders and fifty kilometres of the coast: the zona restringida, the restricted zone. That is exactly where most Dutch people want to live: the Riviera Maya, Puerto Vallarta, Los Cabos, Mazatlán, the coast of Oaxaca.
Buying there is possible, though, through a fideicomiso. A Mexican bank holds the title as trustee, and you are the beneficiary with the full use, the right of letting, sale and inheritance. The construction is valid fifty years and renewable.
The bank applies for a permit from Foreign Affairs, the SRE. The fees are in article 25 of the Ley Federal de Derechos, and the SRE decides within five working days. On top come the bank's set-up costs and an annual fee. Count on a few hundred euros a year, as long as the fideicomiso runs. Whoever takes over an existing fideicomiso pays the transfer and not the set-up.
How do I buy outside the zone?
On the highlands you buy in your own name: in Querétaro, San Miguel de Allende, Guadalajara, at Lake Chapala and in Mexico City.
The only extra step is the declaration at Foreign Affairs that in respect of the property you behave as a Mexican and in disputes make no appeal to your own government. That declaration is called the convenio de renuncia (waiver agreement). The notary arranges it as part of the deed. The migration law (article 65) obliges him to check your residence status as he does so: buying is only possible with a valid residence card.
What does buying a house in Mexico cost on top of the price?
| Item | Amount |
|---|---|
| Fideicomiso permit at the SRE (article 25, section V) | 21,648.83 pesos |
| Convenio de renuncia outside the zone (article 25, section XV) | 5,252.02 pesos |
| Acquisition tax ISAI, per state | 2 percent Yucatán; 2.5 Guanajuato and Nayarit; 2.8 Baja California; 3 Jalisco, Quintana Roo, Baja California Sur and Oaxaca; 4.5 Mexico City |
| Notary, valuation, entry in the public register | together with the ISAI 5 to 9 percent of the price |
| Bank costs fideicomiso | set-up plus an annual fee, a few hundred euros a year |
The buyer pays the acquisition tax on the highest of three values: the purchase price, the cadastral value and the appraisal. The SRE fees are in the statute text of 7 November 2025 and are adjusted yearly. Whoever sees an older amount is looking at an older version.
The notary in Mexico is a public official who executes the deed and withholds the taxes, not your adviser. Take a lawyer of your own who examines the title. The question whether the seller really is the owner and whether the plot isn't ejido land comes before everything. Ejido land is collective land that isn't freely saleable. And pay by transfer: paying cash for real estate is forbidden above a threshold.
Can I get a mortgage?
Mexican banks rarely finance foreigners and at rates a Dutch person doesn't know. Almost every Dutch buyer buys with their own money. That is also the reason buying with Mexico is a step in phase 5 and not in phase 1: first get to know the country, only then lock up the capital.
Where is my house taxed?
With property the tax treaty doesn't follow your place of residence but the bricks: income from immovable property may be taxed in the state where that property lies. That is in article 6. A property in Mexico is taxed there, also through a fideicomiso. A home you keep in the Netherlands stays taxed in the Netherlands. On a sale in Mexico you pay on the gain, with an exemption for the owner-occupied home that comes with conditions.
And the home in the Netherlands has with Mexico a second consequence: it can decide whether under Mexican law you are a resident at all. See the article on AOW, pension and tax.
In Vertrekklaar this is phase 5 of 5 of the journey, step 5.6: the same steps, but for your situation — in your order, tickable, and with the deadlines watched. See the whole journey to Mexico or go straight to step 5.6 in the open plan.
What this rests on
The facts in this article come from these official pages. Rules change. When in doubt, go by the source, not this article.
- SRE — the permit for a fideicomiso in the restricted zone — sre.gob.mx
- Ley Federal de Derechos, article 25 — the fees for the fideicomiso permit (section V) and the convenio de renuncia outside the zone (section XV), text after the amendment of 7 November 2025 — diputados.gob.mx
- Ley de Migración, article 65 — before the notary you prove your residence status and make the renuncia — diputados.gob.mx
- Colegio Nacional de Fedatarios Públicos — the acquisition tax per state, as at July 2026 — fedatariospublicos.org.mx
- Wetten.overheid.nl — the treaty with Mexico (1993), article 6 on immovable property — wetten.overheid.nl
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