The question comes up in almost every first call with a foreign buyer: "someone told me foreigners can't own property near the beach in Mexico." That is half true and half myth, and the difference matters a lot if you are looking at a condo in Playa del Carmen or Cozumel.
Short answer: yes, you can buy. Thousands of Americans, Canadians and Europeans own property in the Riviera Maya today. What changes near the coast is not your right to buy. It is the legal instrument you buy through.
Why the "restricted zone" exists
Mexico's Constitution reserves direct land ownership in two strips: 100 kilometers along the borders and 50 kilometers along the coasts. The entire Riviera Maya sits inside that second strip.
Since the 1993 Foreign Investment Law, the mechanism for foreign buyers has been fully regulated: the bank trust, or fideicomiso. It is not a loophole and not a special favor. It is the standard route, the one virtually all of our US, Canadian and European clients use.
What a fideicomiso actually is
It is a trust agreement with a Mexican bank. The bank holds legal title as trustee, and you are the beneficiary. That sounds strange the first time, so here is what it means in practice:
- You decide everything about the property. You use it, rent it, remodel it, sell it whenever you want, and you keep the proceeds.
- You can name heirs directly in the trust document, which makes inheritance far simpler than probate.
- The bank cannot do anything with your property. It is not a bank asset and does not sit on the bank's balance sheet. If the bank ever disappeared, the trust would transfer to another institution.
The trust is set up for 50 years and it is renewable. It is not a lease and it does not expire into nothing: renewal is routine.
The process, step by step
- You choose the property and negotiate price and terms. Identical to any purchase so far.
- A promise-of-sale agreement is signed, usually with an escrow deposit.
- The bank applies for a permit from the Ministry of Foreign Affairs (SRE). A standard filing.
- The notario publico runs due diligence: confirms the property is free of liens, the seller actually owns it, and everything is clean at the Public Property Registry. In Mexico the notario is a state-appointed legal specialist, a much stronger figure than a US notary.
- You sign the deed before the notario and the trust is created. From that moment the property is yours for every practical purpose.
In the closings we accompany, accepted offer to signature usually takes a few weeks. The exact timeline depends on the bank, the notario and how complete the seller's paperwork is.
What it costs
The fine print varies by bank and municipality, so treat these as reference figures and ask us for a current breakdown on your specific deal:
- Trust setup and the SRE permit: paid once, at the start.
- The bank's annual trust fee: as a reference, most banks charge between 500 and 1,000 US dollars per year.
- Total closing costs (notario, acquisition tax, registry fees, appraisal): the market rule of thumb is 5% to 8% of the purchase price. The notario issues an exact breakdown before you sign, so you never sign blind.
Fideicomiso or Mexican corporation?
If you are buying for personal use or to rent out a condo, the fideicomiso is almost always the answer. A Mexican corporation makes sense when the plan is clearly commercial, for example buying several units to operate as a business. A corporation brings permanent accounting and filing obligations; we do not recommend it just to "skip" the trust.
The myths we hear most
"The bank owns it and can take it from me." No. The bank is a trustee with duties defined by contract. Every economic and usage right belongs to you.
"After 50 years I lose everything." The trust renews. You can also sell or pass it to heirs at any point during its life.
"It's cheaper to buy under a Mexican friend's name." The worst idea on this list. Legally the property would belong to that person, not to you. We have seen up close how badly that ends.
At Nimbos we walk buyers through fideicomiso purchases all year in Playa del Carmen, Tulum and Cozumel, in developments we represent directly. If you want real numbers on a specific unit, browse our properties or write to us and we will prepare the full breakdown, no strings attached.