For buyers from the US & Canada
Buying property in Mexico? Start here.
Foreigners can and do own property in Mexico. What matters is how you hold title, who closes the sale, and what it costs. Here is the plain version for Mérida, the Yucatán coast and Monterrey, the places where Valeria has local agents today.
How foreigners buy
General information, not legal or tax advice. Every point below is confirmed for your specific property by a Mexican notario público and, if you wish, your own attorney and accountant.
The restricted zone and the bank trust
Mexico's Constitution and its Foreign Investment Law set a restricted zone: the strip 100 km along the land borders and 50 km along the coast. Inside it, a foreigner does not take direct title to a home; instead a Mexican bank holds title in a trust (fideicomiso) for you, with a permit from the Foreign Ministry (SRE).
You keep the right to use, rent, sell and leave the property to heirs. The trust runs for up to 50 years and can be renewed. The bank charges a setup fee and an annual fee; ask for its quote.
Verify with your notary: whether the exact property falls inside the zone.Outside the zone: direct title
Outside the restricted zone a foreigner can take title in their own name, like a Mexican citizen. Before buying, the law asks you to sign an agreement with the SRE to be treated as a Mexican national regarding that property (the "Calvo clause"); the notary usually handles this filing.
Verify with your notary: the filing and its timing for your purchase.Through a Mexican company
A Mexican company, even one owned by foreigners, can own property directly inside the restricted zone when it is used for non-residential activities, and must register it with the SRE. For residential use inside the zone, the company also acquires through a trust.
A company brings its own accounting and tax obligations every year.
Verify with an attorney and an accountant: whether a company fits your plans.Mérida, the coast and Monterrey
The Yucatán coast (Progreso, Chelem, Telchac and nearby) is clearly inside the 50 km band. Mérida's main square is only about 35 km in a straight line from the shore at Progreso, so many Mérida addresses may be inside the band too.
Monterrey is far from the coast and more than 100 km from the US border.
Verify with your notary: never rely on a city-level rule of thumb, including ours. The distance is measured for each property.The notario público
A Mexican notary is very different from a US notary public. The notario formalizes the sale in a public deed (escritura), checks that the seller is the owner and that there are no liens, calculates and withholds the taxes, and registers the sale at the Public Property Registry.
Choose and talk to the notary early. Ask them what documents they need from you.Your tax ID (RFC)
Mexico's taxpayer ID is the RFC, issued by the tax authority (SAT). A person selling real estate in a public deed can register for an RFC through the notary handling it.
Ask your notary early whether you need an RFC as a buyer, and which ID they accept.Closing costs and the acquisition tax (ISAI)
The buyer usually pays the acquisition tax (ISAI), the notary's fees, Public Registry fees, an appraisal, certificates and, inside the restricted zone, the bank's trust fees. The ISAI is a local tax: each state and municipality sets its own rate and rules, so Monterrey and Mérida differ.
Example, the City of Mérida (Ley de Hacienda del Municipio de Mérida, arts. 58 and 60): the tax base is the highest of the price, the cadastral value and an appraisal, and the tax is progressive:
| Taxable value (MXN) | Fixed amount | Rate on the excess |
|---|---|---|
| up to 800,000 | MXN 0 | 2.5% |
| 800,000.01 to 3,000,000 | MXN 20,000 | 3.5% |
| 3,000,000.01 to 42,000,000 | MXN 97,000 | 4.5% |
| more than 42,000,000 | MXN 1,852,000 | 5.0% |
So a home valued at MXN 4,000,000 in Mérida pays MXN 97,000 + 4.5% of 1,000,000 = MXN 142,000 of ISAI, before the other costs.
Ask the notary for a written estimate (presupuesto) of every closing cost before you sign anything.Paying in pesos or dollars
A price can be agreed in US dollars, but under Mexico's Monetary Law a foreign-currency obligation payable in Mexico may be settled in pesos at the exchange rate of the day and place of payment. Agree in writing which currency and rate apply.
Cash is not allowed for large real-estate payments: Mexico's anti-money-laundering law bans paying in cash (bills and coins, any currency) for a property purchase worth 8,025 times the daily UMA or more, about MXN 941,000 with the 2026 UMA (MXN 117.31). Expect bank transfers.
Verify with your notary and your bank: how the funds should move and be documented.When you sell: capital-gains basics
The seller pays Mexican income tax (ISR) on the sale, and the notary calculates and withholds it. For a seller who is not a Mexican tax resident, the law sets 25% of the full price with no deductions, or, with a qualifying legal representative in Mexico, the top personal rate on the gain.
A Mexican tax resident selling their own home may be exempt up to 700,000 UDIS (an inflation-indexed unit), if they have not used the exemption in the previous three years.
Verify with an accountant before you buy: keep the deed and receipts; they shape your future tax.Local agents and the INSEJUPY license
In Yucatán, anyone brokering a sale or rental needs a real-estate advisor license from the state institute INSEJUPY (state rules in force since May 2025), and you can check an agent in INSEJUPY's public registry. On Valeria, a listing represented through Valeria shows the agent's license number once we have verified it, and on your private page you can sort the agents who offer with license first.
Ask your agent for their license number and check it yourself.How Valeria helps today
Valeria is free for buyers. We never pick an agent for you, and we take no commission.
- LiveBrowse in English with an approximate USD price. Prices stay in pesos, with "≈ USD" next to them at Valeria's exchange rate and its date. Many descriptions are written in Spanish by local agents. Browse listings
- LiveTell us what you want and choose your agent. Local agents see your needs (never your name or contact) and offer to help. You compare their public records (license, closings confirmed by clients, reviews) and choose one; only that agent receives your details. Start here
- LiveAsk about a listing in English. Use the listing's contact form, or send us your request with that listing attached; the agent sees that you prefer English.
- LiveA deal room for your purchase. Your agent can open a shared space for the purchase with a document checklist and the documents in one place.
- LiveMortgage calculator. On every listing for sale, and a reverse calculator for how much you could buy. How much can I buy?
- LiveAsk Valeria. The chat at the bottom of every page answers questions about the site in English.
- Coming soonPurchase-contract templates reviewed by a Mexican attorney. Until then, your notary and attorney prepare the documents.
- Coming soonWhatsApp messages from Valeria. Today the agent you choose contacts you by WhatsApp, phone or email from their own account.
Working with a US or Canadian agent?
Your agent can refer you to a local agent here. Any referral fee is a private agreement between the two agents; Valeria takes no part and no cut.
This page is general information to help you ask the right questions. It is not legal, tax or financial advice, and laws and rates change. Valeria is a platform that connects you with independent local agents; it does not act as your agent, notary or attorney. Confirm everything for your specific purchase with a notario público and your own advisors. Last reviewed: 21 October 2026.
Sources
- Mexican Constitution, art. 27 fr. I, and Foreign Investment Law (Ley de Inversión Extranjera) arts. 2 fr. VI, 10, 10-A, 11 and 13 (last reform DOF 27/05/2024): diputados.gob.mx · ordenjuridico.gob.mx
- Ley de Hacienda del Municipio de Mérida, arts. 58 and 60 (Congreso de Yucatán, last reform D.O. 30/12/2024): congresoyucatan.gob.mx
- Income Tax Law (LISR) arts. 93 fr. XIX and 160: art. 93 · art. 160
- Anti-money-laundering law (LFPIORPI) art. 32 fr. I: mley.mx · UMA 2026 (INEGI, DOF 09/01/2026): idconline.mx
- Monetary Law (Ley Monetaria) art. 8: mley.mx
- RFC registration through a notary (SAT): sat.gob.mx
- The notary's role in a purchase: Expansión
- INSEJUPY license for real-estate advisors in Yucatán: Diario de Yucatán · Por Esto!
- Distance Plaza Grande (Mérida) to the shore at Progreso: computed from OpenStreetMap coordinates (20.9671, -89.6237 to 21.2846, -89.6630), about 35.5 km.