The mechanism
What stops people is not the money. It is this page.
A foreigner can hold beachfront property in Mexico. It is done through a bank trust, it is an ordinary procedure that happens thousands of times a year, and twenty minutes of reading is enough for it to stop being frightening. Almost everyone who puts this off puts it off because they never read this.
This page explains the mechanism in general terms. It is not legal or tax advice. The Mexican notary handling the transaction is who confirms each point for your case.
The essentials
Five questions, in order
What is the restricted zone?
The Mexican constitution defines a strip fifty kilometres deep from the coastline and one hundred kilometres from the land borders. Inside that strip a foreigner cannot hold direct title to land.
The whole Progreso coast sits inside it. This is not a local quirk and it is not a warning sign, it is the same along every coast in the country, from Los Cabos to Tulum.
So how does a foreigner buy?
Through a bank trust. An authorised Mexican bank acts as trustee and you are named as the beneficiary.
The bank holds formal title. You hold the right to use the property, rent it, alter it, sell it and leave it to your children. The decisions are yours, all of them. The bank does not ask you for permission and cannot touch the property.
How long does it last?
The trust is set up for fifty years and it is renewable. Renewal is an administrative step, not a fresh authorisation somebody could refuse you.
Who authorises it?
The Ministry of Foreign Affairs issues the permit. The bank and the notary run the whole process; you supply identity documents and sign. In practice it is less work than people imagine.
What does it cost?
There is a set-up fee and an annual fee to the trustee bank, on top of notary costs and the acquisition taxes that apply to any buyer, Mexican or foreign.
The figures vary by bank and by year. Ask for the breakdown in writing before you sign anything. A seller who will not put it in writing is telling you something.
The process · From offer to deed, in six steps
The letter of intent
A short document that fixes the terms of the deal and the deadline for closing it. It transfers nothing yet and normally comes with a deposit held in escrow.
The title search
The notary pulls the chain of ownership, checks for liens and confirms the seller is who they say they are. This step prevents almost every serious problem.
The foreign ministry permit
The Ministry of Foreign Affairs authorises the purchase for a foreign buyer. The bank or the notary files it and it usually takes a few weeks.
Setting up the trust
The trustee bank accepts the trust and you are named as the beneficiary. This is where you name who inherits, and it is better thought through now than later.
Signing before the notary
The deed is signed, the balance is settled and the acquisition taxes are paid. The purchase is formal from that moment.
Registration
The notary records the deed at the Public Property Registry. From that day your right stands against any third party.
01
The notary
A Mexican notary is not a notary public
In the United States and Canada a notary public witnesses signatures and little else. In Mexico the notario público is a lawyer who has passed a state examination and holds a state appointment, and is the only person who can give legal effect to a property sale. Without one the transaction simply does not exist.
The notary checks the title, calculates and withholds the taxes, drafts the deed and registers the sale at the Public Property Registry. They are personally liable if they get it wrong, which explains how careful they are.
The buyer chooses the notary, not the seller. That is your right and it is worth using. A seller who insists on their own notary is doing nothing illegal, but you would be giving up the one independent person in the whole transaction.
02
The costs
Who pays what, and when
Acquisition costs fall on the buyer: the property acquisition tax, the notary fees, registration at the Public Property Registry and the appraisal. This is the part people forget to budget for.
The trust carries two charges of its own, a fee to set it up and an annual fee to the trustee bank for as long as it runs. Separately there is a government fee for the foreign ministry permit.
Capital gains tax on a sale falls on the seller. If you sell one day, that calculation depends on what you can evidence with receipts, so keep everything from the first day and keep it in your name.
03
The mistakes
Four mistakes that cost real money
Handing over money before the notary has checked the title. The deposit belongs in escrow, not in the seller's hands. If somebody asks for payment in full up front, something is wrong.
Buying unconverted ejido land. Ejido land is communal property and cannot be transferred as private property until it has been converted to full ownership. There is a reason it is offered that way.
Taking a handshake deal. In Mexico, as anywhere else, what is not in the deed does not exist.
Assuming nobody at home finds out. Many countries require you to declare foreign assets. Speak to your accountant before you close, not after.
04
A warning
Two things you will hear that are not true
You will hear that in some cases no trust is needed. Inside the restricted zone an individual foreign buyer does need one. If somebody tells you otherwise, ask them to put it in writing and take it to a notary before you hand over a single peso.
You will also hear that Mexico does not count days of presence for tax. Mexico has its own tax residency rules. Speak to an accountant before assuming anything about tax, here and at home.