How to Buy a Property in Restricted Zones as a Foreigner in Mexico

Buying a property in Mexico as a foreigner may seem complex, especially when you hear about “restricted zones.” However, thanks to the fideicomiso, foreigners can legally own real estate in some of the most sought-after locations—Playa del Carmen, Puerto Morelos, Tulum, Cancun, and other coastal cities.

If you’re considering investing in Mexican real estate, this guide will walk you through why fideicomiso exists, how it works, your rights as a foreign buyer, and the costs involved. By the end, you’ll have the clarity needed to move forward confidently. Plus, don’t forget to take our quick quiz at the end to see if you’re ready to invest in Mexico!

1. The History of Fideicomiso: Why It Exists

Mexico’s restricted zones include any land located within 50 km (31 miles) of the coastline or 100 km (62 miles) from any international border. Under Mexico’s Constitution of 1917, foreign individuals were prohibited from owning land in these areas to protect national sovereignty.

However, in the 1970s, Mexico recognized the growing interest of foreign investors, especially from the U.S. and Canada, in buying real estate in places like the Riviera Maya and Baja California. To facilitate investment while maintaining constitutional restrictions, the fideicomiso system was introduced in 1973.

The fideicomiso allows foreigners to own property in restricted zones through a Mexican bank trust, ensuring legal protection while still respecting national ownership laws. Today, thousands of foreigners successfully purchase homes, vacation rentals, and investment properties in Playa del Carmen, Tulum, Cancun, and Puerto Morelos using fideicomiso.

2. How Fideicomiso Works: Buying Property as a Foreigner

The fideicomiso is a bank trust that allows a foreign buyer to own a property in Mexico’s restricted zones while maintaining full control over it. Here’s how it works:

Key Facts About Fideicomiso:

✔ The Mexican bank holds the title in trust for the foreign buyer.
✔ The foreign buyer has full rights to use, rent, sell, or pass down the property.
✔ The trust is valid for 50 years and can be renewed indefinitely.
✔ The bank has no ownership rights—it simply acts as a trustee.

Step-by-Step Process to Buy Property Using Fideicomiso

1. Find Your Ideal Property – Whether it’s a beachfront condo in Playa del Carmen, a luxury villa in Cancun, or a pre-construction unit in Puerto Morelos, choose a property that fits your goals.
2. Make an Offer & Sign a Preliminary Agreement – This agreement outlines the purchase terms and initiates due diligence.
3. Choose a Bank to Hold the Trust  .
4. Obtain a Permit from Mexico’s Ministry of Foreign Affairs (SRE) – The permit legally allows the foreign buyer to establish the fideicomiso.
5. Sign the Deed with a Notary Public – In Mexico, all property transactions must go through a notario (a government-authorized attorney) to ensure legality.
6. Register the Property in Your Name – The final step involves registering your fideicomiso with Mexico’s Public Property Registry.

Once the fideicomiso is set up, you have complete control of your property, just as any Mexican citizen would. Of course, you won’t do the process by yourself, our experts could guide you step by step. 

3. Your Rights as a Foreigner Under a Fideicomiso

Many foreign buyers worry about whether they have the same rights as Mexican property owners. The good news is YES, you do.

Your Rights Under Fideicomiso:

✅ Right to Sell – You can sell the property anytime, just like any other homeowner.
✅ Right to Rent – You can rent your property as a vacation home or long-term rental for passive income.
✅ Right to Renovate – You can modify, build, or expand your home without restrictions.
✅ Right to Inherit – You can name heirs to inherit the property without legal complications.

Alternative: Buying Through a Mexican Corporation

If you’re planning to buy multiple properties or invest in commercial real estate, another option is to set up a Mexican corporation. Unlike fideicomiso, corporations allow 100% foreign ownership and are useful for investors looking to run rental businesses.

4. Costs of Buying Property in a Restricted Zone

While buying property in Mexico is often more affordable than in the U.S. or Canada, there are some additional costs associated with the fideicomiso process.

One-Time Costs

• Fideicomiso Setup Fee: $2500 USD
• Closing Costs: 6% – 7% of the property price (includes notary fees, legal fees, and taxes)

Recurring Costs

• Annual Fideicomiso Fee: $400 – $700 USD per year (paid to the bank)
• Property Taxes: Very low, typically 0.1% of the property’s value per year
• Maintenance Fees: Varies depending on location, property type, and amenities

Even with these additional costs, owning property in Mexico remains a great investment due to high rental demand, appreciation potential, and lower overall expenses compared to North America.

Final Thoughts: Is Buying in Mexico Right for You?

Buying property in Playa del Carmen, Puerto Morelos, or Cancun as a foreigner is not only possible but also safe and profitable when done correctly. Thanks to fideicomiso, international buyers enjoy full property rights while investing in one of the most desirable locations in the world.

But before you take the next step, are you ready to invest?

📌 Take our free 2-minute quiz: “Are You Ready to Invest in Mexico?” 

You will get your readiness score and thoroughly assess your situation.
👉 Click here to take the quiz now!