Can Foreigners Buy Beach Property in Mexico? Bank Trust (Fideicomiso), Requirements and Costs for 2026
Reviewed 2026-10-12 by the patrimonio.casa team
Yes. Foreigners can buy beach property in Mexico, but not in their own name. Inside the restricted zone (50 km from beaches, 100 km from borders) you hold it through a bank trust (fideicomiso) with an SRE permit, for up to 50 years, renewable. Outside that strip you can take title by signing the Article 27 agreement with the SRE.
What does Mexico's Constitution say about foreigners owning coastal property?
Article 27, section I, of the Mexican Constitution says that within a strip of one hundred kilometers along the borders and fifty kilometers along the beaches, foreigners may under no circumstances acquire direct ownership (dominio directo) of land and water. The Foreign Investment Law (Ley de Inversión Extranjera, LIE) calls that strip the restricted zone (zona restringida).
The key phrase is direct ownership. The law does not stop you from enjoying, renting out, selling or passing on a beach house; it stops the deed from being in your name as a foreign individual. That is what the bank trust (fideicomiso) is for: it is the legal route, and it is widely used in beach destinations.
Outside the restricted zone, the same article allows the government to grant that right to foreigners who agree to be treated as Mexican nationals with respect to that property and not to invoke the protection of their own government. This is known as the Calvo Clause, and if it is breached, the property is forfeited to the Nation.
Are Acapulco and La Saladita in the restricted zone?
Yes. Any oceanfront property, or one a few kilometers from the beach, falls within the 50 km strip, so a foreign buyer purchasing a home in Acapulco Diamante or in La Saladita, on the Guerrero coast, does it through a fideicomiso.
Two examples you can look at on this site: Baía, residences in pre-sale in Acapulco Diamante by developer Beyond Ventures, and Casa Akaw, a beach house for sale in La Saladita. In both cases, a foreign buyer would need a fideicomiso. Before you sign, ask the developer or seller to confirm which trustee bank and which notary's office are handling the transaction.
For properties near the edge of the strip, the law provides for INEGI (Mexico's national statistics institute) to publish in the Official Gazette (Diario Oficial de la Federación) the list of municipalities located fully or partly in the restricted zone. What ultimately counts is the property's actual distance, which is also stated in the application to the SRE.
How does a fideicomiso work in the restricted zone?
Here is how it works: the seller transfers the property to a Mexican bank (the trustee, or fiduciario), and you become the beneficiary (fideicomisario) with full rights to use and benefit from it. The bank is the formal titleholder, but it acts on your instructions.
Article 12 of the Foreign Investment Law defines those rights as the use and enjoyment of the property, including its fruits, products and any income from its operation, whether through third parties or through the bank itself. In practice, you can live in it, rent it out, sell it (by assigning your rights) and name substitute beneficiaries so it passes to your heirs.
Article 13 sets a maximum term of 50 years, which can be extended at the beneficiary's request. If the extension is requested late, the Federal Fees Law (Ley Federal de Derechos, LFD) charges a specific fee for a late request, so it is worth noting the expiration date.
- Settlor (fideicomitente): the party that contributes the property (usually the seller or developer).
- Trustee (fiduciario): the authorized Mexican bank.
- Beneficiary (fideicomisario): you, the foreign buyer, plus any substitute beneficiaries you name.
- Permit: the bank applies to the SRE for it, not the buyer.
What does the SRE require to issue the permit?
The permit is requested online by the bank's trust officer (delegado fiduciario). By law it must be decided within five business days if filed at the central offices, or thirty if filed at a state office; if there is no answer within that period, it is deemed approved (Article 14 of the LIE). The SRE (Secretaría de Relaciones Exteriores, Mexico's Ministry of Foreign Affairs) has itself posted notices that its system has had outages and processing times have gotten longer, so ask the bank what the real timeline is.
According to the SRE's website, the application includes the following information:
- Name and nationality of the settlor and the beneficiary, plus substitute beneficiaries.
- The bank that will act as trustee.
- Term of the trust and the intended use of the property.
- Description, location, measurements, boundaries and area of the property.
- Distance from the property to the border or to the federal maritime terrestrial zone (zona federal marítimo terrestre).
- Payment of fees under Article 25 of the Federal Fees Law.
How much does a fideicomiso cost?
There are two kinds of costs: the government fees for the permit, which are set by law, and the bank's own charges, which each institution sets on its own. Bank fees (setup and annual fee) are not published in a uniform way, so ask two or three trustee banks for a written quote before you sign.
Amounts under the Federal Fees Law are adjusted for inflation. The figures in the table come from the current text published by the Chamber of Deputies (last amended in the Official Gazette on Nov 7, 2025); confirm the exact fee for the year you sign with the bank or the SRE.
| Item (LFD Art. 25) | Amount in current text (MXN) |
|---|---|
| Review of the permit application (sec. III) | MXN $596.29 |
| Permit to set up a fideicomiso, Art. 11 LIE (sec. V a) | MXN $21,648.83 |
| Amendment of the permit (sec. V b) | MXN $9,740.31 |
| Late request to extend the term (sec. V c) | MXN $10,613.78 |
| Bank setup and annual fee | Set by each bank: ask for a quote |
What if I buy through a Mexican corporation?
It is an option, but only for non-residential use. Article 10 of the LIE allows a Mexican corporation (sociedad mexicana) with a foreigners admission agreement (convenio de admisión de extranjeros) to acquire property in the restricted zone directly for non-residential activities (for example, a hotel business or offices), notifying the SRE within 60 business days after the purchase.
If the property is for residential purposes, it has to go through a fideicomiso even if a corporation buys it. Owning a company means bookkeeping, tax filings and annual costs, so it only makes sense if you will actually run a business. For a vacation home, the fideicomiso is the usual route.
What if the property is outside the restricted zone?
You can hold title in your own name. Article 10 A of the LIE requires you to first file a written statement with the SRE accepting the Calvo Clause and to obtain the permit.
If the municipality is entirely outside the restricted zone, the permit is deemed granted if the SRE does not publish a denial in the Official Gazette within five business days. If the municipality is partly inside, the SRE has thirty business days to decide.
What documents does a foreigner need to buy?
The starting point is your valid passport, and the notary and the bank will tell you what else you need for your case. The Foreign Investment Law does not require you to be a resident to be a beneficiary; the SRE application asks for your name and nationality.
What you will typically be asked for:
- Valid passport and, if you have one, your immigration document (temporary or permanent resident card).
- RFC (Mexican tax ID), if you already have one or if you will earn income in Mexico, for example from rentals.
- Proof of address and the identification details required under the anti-money laundering law.
- Source of funds and details of the account you will pay from.
- If you will not be present, a power of attorney; ask the notary whether it needs an apostille or legalization.
- Designation of substitute beneficiaries.
What role does the Mexican notary play?
The Mexican notary (notario público) is the one who gives the transaction its legal form: they review the seller's title, request the certificate of no liens (certificado de libertad de gravámenes), calculate and pay over the taxes, and sign the fideicomiso deed together with the bank.
In a pre-sale, they also check that the promise to purchase or adhesion contract describes the unit, delivery dates and what happens if there are delays. Keep in mind that the developer may propose the notary, but you can ask your own attorney to review everything.
What taxes does a foreigner pay on a beach house?
When you buy, you pay the acquisition tax (Impuesto Sobre Adquisición de Inmuebles, ISAI), which is local and varies by municipality, plus registration fees and notary fees. Every year you pay property tax (predial) to the municipality. Ask the notary for the exact calculation before you sign.
If you rent out the house and you are not a tax resident of Mexico, Article 158 of the Income Tax Law (Ley del ISR) sets a 25% tax on the income, with no deductions. When the income goes through the fideicomiso, the trustee bank issues the invoice and withholds the tax. If you are a Mexican tax resident, you are taxed like any domestic landlord.
When you sell as a non-resident, Article 160 of the Income Tax Law sets 25% on the total proceeds with no deductions, or the option to pay on the gain at the top rate of the tax table (35%) when the sale is executed in a public deed. Tax treaties to avoid double taxation can change the calculation, so it is worth reviewing with an accountant.
How do I pay if I live outside Mexico?
By bank transfer, never in cash. Mexico's anti-money laundering law (Ley Federal para la Prevención e Identificación de Operaciones con Recursos de Procedencia Ilícita, LFPIORPI) prohibits paying in cash, whether in pesos, foreign currency or precious metals, for real estate worth 8,025 UMA or more. With the 2026 daily UMA (MXN $117.31, INEGI), that is about MXN $941,413.
Developers and real estate intermediaries are also classified as a vulnerable activity: they must identify you and file a report with Mexico's tax authority (Hacienda) on transactions of 8,025 UMA or more, and since the July 16, 2025 reform that includes receiving funds for a real estate development, such as the deposits and payments of a pre-sale. Notaries report transactions of 8,000 UMA or more. It is nothing personal: it is the rule, and a serious developer will ask you for this information.
Practical tip: always pay into accounts in the name of the developer or the trustee bank, keep proof of every transfer and ask for a receipt or CFDI (Mexican electronic invoice) for each payment.
What should I check before signing?
Before you put down a deposit, confirm that the property has a registered private deed (not ejido land without full ownership, or dominio pleno), get the trustee bank's quote and the notary's tax calculation, and pay only by bank transfer with proof of payment.
This guide is general information, not legal, tax or financial advice. Confirm your situation with a Mexican notary or attorney you trust before signing or transferring any money.
Frequently asked questions
Can a foreigner buy a house in Mexico?
Yes. Outside the restricted zone, they can hold title in their own name by signing the Article 27 agreement with the SRE. Within the strip of 50 km from beaches and 100 km from borders, they do it through a bank trust (fideicomiso) authorized by the SRE, which gives them use of the property, rental income and the ability to sell it or pass it on.
How long does a fideicomiso last in the restricted zone?
Up to 50 years, under Article 13 of the Foreign Investment Law, and it can be extended at the beneficiary's request. Note the expiration date: if the extension is requested late, the Federal Fees Law charges an extra fee for a late request.
Do I need to be a resident of Mexico to buy through a fideicomiso?
The Foreign Investment Law does not require residency to be a beneficiary; the SRE application asks for your name and nationality. Even so, the bank and the notary may ask for additional documents, such as your immigration document if you have one, your RFC and proof of address.
Can I rent out my beach house as a foreigner?
Yes, the fideicomiso includes the right to the fruits and income of the property. If you are not a Mexican tax resident, rental income pays 25% income tax (ISR) on the gross income with no deductions, and when it goes through the fideicomiso the bank withholds it. We make no promises about occupancy or rental income.
Can I leave a fideicomiso property to my heirs?
Yes. When you set up the fideicomiso you name substitute beneficiaries, who receive your rights when you pass away. It is faster than probate, but make sure the names are up to date and match your will, if you have one.
Can I pay for the house in cash or in dollars?
Not in cash if the transaction is 8,025 UMA or more (about MXN $941,413 with the 2026 UMA): the anti-money laundering law prohibits it, whether in pesos or foreign currency. The right way is to wire funds from a bank account to accounts in the name of the developer or the trustee bank.
Does a Mexican corporation let me skip the fideicomiso?
Only for non-residential use. A Mexican corporation with foreign shareholders can buy directly in the restricted zone if the property is for non-residential activities, notifying the SRE within 60 business days. A home for residential use also has to go through a fideicomiso.
Is this guide legal advice?
No. This is general information, not legal advice. Confirm the details of your purchase with a Mexican notary (notario público) or a Mexican attorney before you sign or send money.
Keep reading
- Casa Akaw, a new beach shack for sale in La Saladita, Guerrero (US$120,000)
- Baía, oceanfront residences in pre-sale at Playa Diamante, Acapulco, furnished by Armani/Casa
- Leer en español
Sources
- Constitución Política de los Estados Unidos Mexicanos (Mexican Constitution), Art. 27 sec. I (Chamber of Deputies) (accessed 2026-10-11)
- Ley de Inversión Extranjera (Foreign Investment Law), Arts. 2, 10, 10 A, 11 to 14 (last amended DOF 27-05-2024) (accessed 2026-10-11)
- SRE: Permit to set up a fideicomiso in the restricted zone (Permiso para constituir un fideicomiso en zona restringida) (accessed 2026-10-11)
- Ley Federal de Derechos (Federal Fees Law), Art. 25 (last amended DOF 07-11-2025) (accessed 2026-10-11)
- Ley del Impuesto sobre la Renta (Income Tax Law), Arts. 158 and 160 (accessed 2026-10-11)
- LFPIORPI (Mexican anti-money laundering law), Arts. 17 and 32 (last amended DOF 16-07-2025) (accessed 2026-10-11)
- INEGI: 2026 UMA value (press release 1/26) (accessed 2026-10-11)
General information, not legal, tax or investment advice. Confirm your case with a Mexican notary or attorney.