Question 1

Can foreigners legally buy property in Playa del Carmen?

Accepted Answer

Yes. Foreigners can legally purchase property in restricted zones like Playa del Carmen through a bank trust (fideicomiso) or a Mexican corporation.

Question 2

What is the restricted zone?

Accepted Answer

The restricted zone refers to land within 50 km of the coast or 100 km from an international border. Foreigners must use legal structures to buy there.

Question 3

What is a fideicomiso?

Accepted Answer

A fideicomiso is a bank trust that allows foreigners to hold property in Mexico. The bank holds the title, and the foreigner retains full rights as beneficiary.

Question 4

Do I need Mexican residency or citizenship to buy?

Accepted Answer

No. You do not need residency or citizenship to purchase property in Mexico as a foreigner.

Question 5

How long does it take to set up a fideicomiso?

Accepted Answer

It typically takes 5 to 6 weeks from application to completion, including all registration and legal processes.

Question 6

What are closing costs?

Accepted Answer

Closing costs usually range from 4% to 9% of the property price. These include taxes, notary fees, registration, and legal services.

Question 7

Who pays capital gains tax?

Accepted Answer

In Mexico, the seller is responsible for paying capital gains tax at the time of sale.

Question 8

Why hire a lawyer for my property purchase?

Accepted Answer

A lawyer ensures all legal documents are in order, protects your interests, and handles due diligence and contracts throughout the transaction.

Question 9

What is the role of the Notario Público?

Accepted Answer

The Notario finalizes and registers the property deed, collects taxes, and ensures the transaction is legally valid in Mexico.

Question 10

Can I buy property as a Mexican corporation?

Accepted Answer

Yes. Forming a Mexican corporation allows direct ownership of real estate in restricted zones and may provide tax benefits for investors.

Question 11

Can I co-own property with someone else?

Accepted Answer

Yes. Multiple owners can be listed as co-beneficiaries in a fideicomiso or shareholders in a Mexican corporation.

Question 12

Can a U.S. LLC purchase property in Mexico?

Accepted Answer

Yes, but the LLC must be registered in Mexico and accepted by the bank managing the fideicomiso.

Question 13

Are there annual property taxes in Mexico?

Accepted Answer

Yes, but they are very low—typically under 0.1% of the assessed property value annually.

Question 14

Is title insurance required in Mexico?

Accepted Answer

No. Title insurance is optional. A Notario and legal team can ensure title clarity through due diligence.

Question 15

Should I buy a presale property?

Accepted Answer

Presale purchases offer better prices and options, but require due diligence to ensure developer reliability and timelines.

Question 16

How do I verify a developer’s reputation?

Accepted Answer

Ask your agent about the developer’s history, view past projects, and verify permits and legal documentation.

Question 17

What inspections should I perform on the unit?

Accepted Answer

Inspect finishes, appliances, fixtures, ceiling heights, plumbing, and signs of moisture or humidity issues.

Question 18

What taxes apply to rental income?

Accepted Answer

Non-resident rental income is taxed at a flat rate of 25% with no deductions unless structured differently.

Question 19

Are escrow services used in Mexico?

Accepted Answer

Yes. Escrow accounts are used via licensed third-party companies to secure funds during real estate transactions.

Question 20

Is it risky to buy property in Playa del Carmen?

Accepted Answer

Not if the transaction is properly structured with legal guidance, title review, and formal registration.

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