Investment

A foreign buyer closes on Mexico property through a notary who verifies title, calculates taxes and registers the deed. In the restricted zone the notary coordinates with a bank to establish the fideicomiso trust, which requires an SRE permit costing MXN 21,650 and takes four to eight weeks. The buyer pays municipal acquisition tax (ISAI) of 2 to 4 percent depending on the state and municipality, notary fees of 1 to 1.5 percent of the purchase price, and registry and appraisal charges adding a few hundred to a few thousand pesos. Total closing costs range from 4.3 percent in Cancún and Cozumel to 8.5 percent in Playa del Carmen and Tulum when including the fideicomiso setup. Outside the restricted zone the buyer holds direct title after signing the Calvo Clause (agreeing to waive recourse to a foreign government for property disputes) and obtaining an SRE permit for MXN 5,250. Cash purchases remain the norm; Mexican bank mortgages to non-residents carry interest rates of 9 to 12 percent as of 2026, and cross-border financing is limited.

A foreign owner of Mexico investment property pays annual property tax (predial) to the municipality—ranging from 0.10 percent of cadastral value in Bacalar to 0.23 percent in Tulum for most municipalities, though Cozumel applies a progressive tariff with marginal rates from 0.11 to 0.77 percent plus fixed fees depending on the cadastral-value band—and an annual fideicomiso trustee fee of USD 500 to 1,000 if the property is in the restricted zone. Rental income is subject to Mexican income tax (ISR) regardless of the owner residency; non-resident owners typically pay 25 percent of gross rental income with no deductions, withheld monthly or quarterly. Furnished and vacation rentals also incur 16 percent IVA (value-added tax) and, in Quintana Roo, a 6 percent state lodging tax on bookings through digital platforms such as Airbnb and Vrbo. Owners who rent short-term must register with the state tourism registry (RETUR-Q) and obtain a municipal operating license. PropertyMex recorded 230 active sale listings across the Riviera Maya in November 2026, with median asking prices of USD 469,673 for condos and USD 362,743 for houses. Recent market data show average short-term rental occupancy of 57 percent in Playa del Carmen, 54 percent in Cancún and 46 percent in Tulum for the 12 months ending August 2026.

A non-resident seller of Mexico property pays capital gains tax (ISR) calculated and withheld by the notary at closing, with a choice between 25 percent of the gross sales price with no deductions or approximately 35 percent of the net gain (using documented purchase costs, improvements and inflation adjustments). The 35 percent net method requires an RFC (Mexican tax ID) and valid invoices for all improvements; without these the 25 percent gross method applies. Mexican tax residents can exclude up to roughly MXN 5.8 to 6.2 million of gain (700,000 UDIS indexed for inflation) if the property was their primary residence. In addition to ISR the seller pays the real estate agent commission (commonly 6 to 7 percent split between buyer and seller agents), the cost to cancel or transfer the fideicomiso (a few hundred USD charged by the bank), and any unpaid predial or HOA fees. The notary issues a constancia documenting the ISR withheld, which US and Canadian sellers use to claim a foreign tax credit on their home-country return. Under the US-Mexico and Canada-Mexico income tax treaties, capital gains from Mexico real estate are taxable in Mexico, and the treaty partner allows a credit for the Mexican tax paid to avoid double taxation.