Buying and Selling
buying and selling in Mexico involves national rules such as a fideicomiso for foreigners in the restricted zone and non-resident sellers paying income tax of 25% of gross proceeds or 35% of net gain, as of November 2026. Foreign buyers often use a bank trust to hold residential property near the coast, while sellers face a choice of two tax rates depending on their situation. Closing costs include notary and registry fees, and property taxes are low in Quintana Roo.
buying and selling in Mexico involves national rules such as a fideicomiso for foreigners in the restricted zone and non-resident sellers paying income tax of 25% of gross proceeds or 35% of net gain, as of November 2026. Foreign buyers often use a bank trust to hold residential property near the coast, while sellers face a choice of two tax rates depending on their situation.
Source: PwC Tax Summaries, 1 November 2026
By Daniel Ortega, MDI · Last reviewed 1 November 2026 · Next review 1 March 2027
Buying and selling in Mexico: the short answer
Buying property in Mexico is open to foreigners, but those near the coast or border need a bank trust. Sellers who are non-resident pay income tax at 25% of gross proceeds or 35% of net gain. A notary handles every transaction, and local property tax rates are confirmed with the municipality.
Buying as a foreigner
Foreigners can buy property in Mexico. In the restricted zone, which covers the Riviera Maya coastline, ownership is held through a bank trust called a fideicomiso. The trust is renewable and gives the buyer all rights to use, rent, and sell. The purchase process includes making an offer, reviewing title with a notary, signing the trust or deed, and registering with the public property registry. The sale of land and housing is exempt from IVA. Closing costs are paid to the notary and government; request a line-item quote for each charge. Local property taxes are low: in Tulum, the 2026 rate is 0.17% for built urban homes.
Buying as a foreigner
Foreigners can buy property in Mexico. In the restricted zone, which covers the Riviera Maya coastline, ownership is held through a bank trust called a fideicomiso. The trust is renewable and gives the buyer all rights to use, rent, and sell. The purchase process includes making an offer, reviewing title with a notary, signing the trust or deed, and registering with the public property registry. The sale of land and housing is exempt from IVA. Closing costs are paid to the notary and government; request a line-item quote for each charge. Local property taxes are low: in Tulum, the 2026 rate is 0.17% for built urban homes.
Owning and renting out
Once the purchase closes, the buyer owns the property outright, either directly or as beneficiary of a fideicomiso. Annual property tax, called predial, is paid to the municipality. In Tulum, the 2026 rate is 0.17% of the taxable base for built urban residential properties; other categories and towns may differ. Owners can rent the property, and rental income is subject to Mexican tax for residents and non-residents. There is no annual wealth tax. The fideicomiso can be renewed and transferred to heirs. Keep records of improvements and acquisition costs for future capital gains calculations.
Owning and renting out
Once the purchase closes, the buyer owns the property outright, either directly or as beneficiary of a fideicomiso. Annual property tax, called predial, is paid to the municipality. In Tulum, the 2026 rate is 0.17% of the taxable base for built urban residential properties; other categories and towns may differ. Owners can rent the property, and rental income is subject to Mexican tax for residents and non-residents. There is no annual wealth tax. The fideicomiso can be renewed and transferred to heirs. Keep records of improvements and acquisition costs for future capital gains calculations.
Selling and inheritance
When selling, a non-resident foreigner pays Mexican income tax. The default is 25% of the gross sale price, but the seller may elect to pay 35% on the net gain after subtracting the inflation-adjusted purchase price and authorized deductions. The buyer or notary often withholds this tax at closing. Capital gains are calculated in Mexican pesos using official exchange rates. A tax adviser can confirm which method results in lower tax. The sale is formalized by a notary and registered to transfer ownership. Selling costs also include notary fees and possibly a real estate commission if an agent is used.
Selling and inheritance
When selling, a non-resident foreigner pays Mexican income tax. The default is 25% of the gross sale price, but the seller may elect to pay 35% on the net gain after subtracting the inflation-adjusted purchase price and authorized deductions. The buyer or notary often withholds this tax at closing. Capital gains are calculated in Mexican pesos using official exchange rates. A tax adviser can confirm which method results in lower tax. The sale is formalized by a notary and registered to transfer ownership. Selling costs also include notary fees and possibly a real estate commission if an agent is used.
The laws behind it
- Ley de Inversión Extranjera (Foreign Investment Law)
- Ley del Impuesto sobre la Renta (Income Tax Law)
- Ley del Impuesto al Valor Agregado (Value Added Tax Law)
- Ley de Hacienda del Municipio de Tulum (Tulum Municipal Tax Law)
Guides in this topic
- How to Buy Property in Mexico
- Can Americans Buy Property in Mexico?
- Foreign Ownership Rules in Cozumel: Myths and Truths
- Closing Costs in Mexico
- Capital Gains Tax for Cozumel Property Sellers
- Risks of Buying Real Estate in Mexico
- Top 5 Mistakes First-Time Buyers Make in Cozumel
- Mexican vs US Realtors: Commissions and Licensing
Notaries and lawyers in the Riviera Maya
A Mexican notary public is a lawyer who verifies the legality of the transaction, calculates taxes, and registers the deed. A notary handles every purchase or sale.
Buying and selling FAQ
Can a foreigner buy property in Mexico?
Yes, foreigners can buy property in Mexico. Outside the restricted zone, they can own directly. Inside the restricted zone, which includes the Riviera Maya, they use a bank trust called a fideicomiso. The trust is renewable and gives the buyer full rights to use, rent, and sell. The process requires a notary to handle the paperwork and registration.
What taxes does a non-resident seller pay in Mexico?
A non-resident seller pays Mexican income tax on the sale. The default is 25% of the gross sale price with no deductions. The seller can elect to pay 35% on the net gain after subtracting the inflation-adjusted purchase price and authorized deductions. The buyer or notary often withholds this tax at closing. A tax adviser helps choose the better option.
Is buying and selling property in Mexico safe for foreigners?
Buying and selling in Mexico is safe when using a licensed notary, verifying the title, and following the legal process. Foreigners should use a bank trust for restricted-zone property and confirm all fees in writing. Avoid deals without proper registration. Working with a local real estate agent and a notary reduces risk.
What is the property tax rate in Tulum?
In Tulum, the annual property tax, called predial, is 0.17% of the taxable base for built urban residential properties in 2026. The taxable base is the highest of cadastral, bank, declared, or rent value. Other property categories, such as Akumal, may pay 0.50%. Rates are set by the municipal tax law.
Does a buyer pay IVA when purchasing a resale home?
No, the sale of land and buildings used exclusively as housing is exempt from IVA under Mexican tax law. This applies to residential resales. New construction from a developer may include IVA on the construction services, but the transfer of the property itself is exempt. Always confirm with the notary.
What is a fideicomiso and how long does it last?
A fideicomiso is a bank trust required for foreigners buying residential property in the restricted zone. It is renewable. The buyer is the beneficiary and can use, rent, or sell the property. The bank holds the title but follows the buyer's instructions. Renewal is straightforward.
Written and reviewed by
Daniel Ortega
Real-estate writer · Maestría en Dirección Inmobiliaria (MDI)
Born and raised in Mexico City, living in Cancún since 2015.
Sources
Cámara de Diputados, federal laws (1 November 2026) · PwC Tax Summaries (6 August 2026) · practiceguides.chambers.com (23 April 2026) · Congreso de Quintana Roo, state laws (1 November 2026) · Not tax or legal advice.