Mexico City · September 23, 2026
Buying Property in Mexico City as a Foreigner (2026)
NOMADA · 3 min read
Foreigners can buy in Mexico City with direct title and no bank trust. Here's the process, the closing costs, the taxes and the things that catch buyers out.
Foreigners can buy property in Mexico City outright, in their own name, with direct title. The bank trust that people talk about, the fideicomiso, only applies within 50 km of a coast or 100 km of a border. Mexico City is in neither, so it doesn't apply here. Budget 5–8% of the purchase price in closing costs on top of the price.
This is general information, not legal or tax advice. Use a Mexican notary and your own independent lawyer.
We're building NOMADA: residences, workspace and venues for people who work from anywhere, in a historic building in Mexico City. Register your interest →
The restricted zone, and why it doesn't apply
Mexico's constitution restricts direct foreign ownership within 50 km of any coastline and 100 km of any international border. That covers Tulum, Playa del Carmen, Los Cabos and Puerto Vallarta, where buyers use a fideicomiso: a 50-year renewable bank trust that holds title while you hold the rights. It costs roughly $1,000–$2,000 USD to set up and $350–$650 a year to maintain.
Mexico City, Guadalajara, San Miguel de Allende, Querétaro and Oaxaca City all sit outside that zone. You buy with direct title, like a Mexican citizen.
What it costs to close
| Item | Typical cost |
|---|---|
| Acquisition tax (ISAI) | 2–5% of the price, depending on the state |
| Notary fees | About 1–1.5% |
| Registry and deed recording | 0.5–1% |
| Independent lawyer | $1,500–$3,000 USD |
| Appraisal | $300–$700 USD |
| Total outside the restricted zone | 5–8% of the purchase price |
Figures from International Real Estate, April 2026. Checked September 2026.
How the process works
- Offer and contract. A promissory agreement (contrato de promesa) sets the price and the timetable, usually with a deposit.
- Due diligence. Your lawyer checks title at the public registry, confirms there are no liens, and checks that property taxes (predial) and utilities are paid.
- The notary. In Mexico a Notario Público is a government-appointed lawyer with exclusive authority over property transfers. They prepare and register the deed, and withhold taxes. They are not your advocate, which is why you also want your own lawyer.
- RFC and bank. You'll usually need a Mexican tax ID, and a Mexican bank account makes payment simpler.
- Closing and registration. You sign the escritura before the notary, funds transfer, and the deed is registered. Registration can take weeks.
What catches buyers out
- Old buildings and seismic risk. Much of Roma, Condesa and the Centro is built on a dry lakebed. Get a structural survey, and check what happened to the building in 2017.
- Heritage rules. In protected zones, changes to facades, plumbing stacks and rooftops need consent, and rooftop additions are refused more often than any other request.
- Condo rules and the neighbours. Reglamento documents can ban short-term letting outright.
- Short-term rental rules. The city has tightened them since 2024, so don't underwrite a purchase on nightly income you may not be allowed to earn.
- Capital gains on the way out. Exemptions depend on residency and on the property being your home. Get tax advice before you buy, not when you sell.
Owning versus using
If the plan is to spend a few months a year in Mexico City rather than to live there, ownership brings costs most people underestimate: property tax, insurance, a manager, cleaning between stays, repairs, and income tax on any rent. Run the numbers against simply booking the nights you'll actually use. See coliving vs Airbnb vs a furnished apartment for the shorter-term version of that comparison, and where to find listings for the search itself.
Where NOMADA fits
We're building NOMADA, so read this section knowing we have an interest. Our model is built on exactly the trade-off above: investors fund the building and receive an ownership interest plus a committed number of nights each year, instead of buying an apartment they use for a few weeks and let out for the rest. It suits people who want to use a place rather than manage one. If you want a deed, an address and full control, buy the apartment.
Register your interest at nomadahouse.com →
Sources
- Can foreigners buy property in Mexico? Complete legal guide 2026, International Real Estate
- Foreigners buying property in Mexico face new fideicomiso costs in 2026, Rio Times
Checked September 2026. Take independent legal and tax advice before buying.