Question 1

Can foreigners legally buy property in the Riviera Maya?

Accepted Answer

Yes. Foreign nationals can own residential property anywhere in Mexico. Because the Riviera Maya sits inside the coastal restricted zone, foreign buyers hold residential property through a fideicomiso (a renewable 50-year bank trust) or, for commercial or rental-business use, through a Mexican corporation. Both routes give full rights to use, renovate, rent, sell and inherit the property.

Question 2

What is a fideicomiso and how much does it cost?

Accepted Answer

A fideicomiso is a bank trust in which a Mexican bank holds legal title while you, the beneficiary, keep every practical ownership right. Expect a one-time setup fee plus an annual trustee fee, typically in the range of several hundred to just over a thousand US dollars a year depending on the bank and property value. The permit and setup are arranged during closing by the notario.

Question 3

What are typical closing costs when buying in Quintana Roo?

Accepted Answer

Budget roughly 5% to 8% of the purchase price. The main components are the acquisition tax (ISABI), notario fees, Public Registry recording fees, appraisal, the fideicomiso permit and setup, and any legal or escrow fees. Closing costs are paid by the buyer; the seller pays capital gains tax and, where agreed, the brokerage commission.

Question 4

How much is property tax (predial) in the Riviera Maya?

Accepted Answer

Predial is a municipal annual tax and is very low by North American standards, often a few hundred US dollars a year for a typical condo. Most municipalities give a discount of 10% to 25% for paying in January or February. A current predial receipt is normally required at closing.

Question 5

What taxes do I pay when I sell?

Accepted Answer

Sellers pay ISR (capital gains tax) calculated by the notario, either on the net gain or as a flat percentage of the sale price. Deductions require official facturas and an RFC tax number. Residents selling a documented primary residence may qualify for an exemption, subject to strict conditions on residency and frequency of use.

Question 6

Are short-term vacation rentals allowed?

Accepted Answer

Short-term rental is legal and widespread, but three layers of rules apply: the condominium regime and HOA rules, municipal registration, and state lodging tax obligations. Some buildings restrict or prohibit nightly stays. Always read the condominium regime before buying with rental income in mind.

Question 7

How do long-term rentals differ from vacation rentals?

Accepted Answer

Long-term leases are usually 6 to 12 months, quoted in pesos, unfurnished or semi-furnished, with a one-month deposit and utilities paid by the tenant. Vacation rentals are nightly or weekly, quoted in US dollars, fully furnished, and include cleaning and service fees. Yields are higher on vacation rentals but so are management costs and vacancy risk.

Question 8

What should I check before buying pre-construction?

Accepted Answer

Verify the developer's land title and construction permits, the environmental authorisation, the delivery schedule and penalties for delay, what happens to your deposits if the project stalls, and the projected HOA fee at delivery. Payments should be staged and documented, and the promise-to-purchase agreement should be reviewed by an independent Mexican attorney.