Buying a house in Mexico as a foreigner: how it works

It is possible for a foreign person to own a house in Mexico as long as they have an agreement with the federal government through the Ministry of Foreign Affairs (Secretaría de Relaciones Exteriores).

This agreement is called the Calvo Clause, and it allows foreign persons to be considered as Mexican nationals for the real estate that they purchase.

This means that they surrender the protection of their governments to solve any problems related to the real estate, with the risk of losing the property or investment if they fail to comply with the agreement.

Get your mortgage loan

However, there are two limitations to owning property in Mexico:

1. Plots or ejido lands

2. And properties located in the restricted zone.

The restricted zone corresponds to a 100 km (62.137 miles) strip along the borders and 50 km (31.0686 miles) wide along the coasts.

Following this guideline means that foreigners cannot acquire property in an estimated 50% of Mexican territory. Nevertheless, the Mexican government has created a contract called "Fideicomiso" that allows any foreign person to legally own property within the restricted zones.

Taxes that a foreigner must pay when buying a house in Mexico

Foreigners who buy a house outside the restricted zone must agree with the Mexican government to be considered as a national when making such a purchase. This procedure is free of charge, but they must pay their taxes. The seller may exempt or pay Income Tax (ISR), and the buyer must pay acquisition taxes, duties, fees, and notary expenses.

What does a foreigner need to buy a house in Mexico?

To buy a house outside the restricted area, foreigners can apply for permits in person at the General Directorate of Legal Affairs in Mexico. There are also financing options for foreigners. If interested in acquiring a mortgage loan in Mexico, Kredi has an online option available.

The process is entirely online, and the applicant only needs to be present at the signing of the deed. If unable to be present, there is the possibility of signing with a legal proxy, to whom the power of attorney is granted before a consul for it to be valid.

Requirements to buy a house in Mexico as a foreigner

The requirements to buy a house in Mexico as a foreigner include:

• A minimum age of 18 years old
• A net monthly income of at least $25,000 pesos per month
• A minimum property value of MXN $750,000 pesos and a maximum of MXN $15,000,000 pesos (located outside the restricted zone)
• A down payment of 10% of the property's value
• Proof of income
• Fico Score
• Permanent or temporary residence card (FM1 and FM2)
• And a valid passport.

Foreigners can also pre-approve their mortgage loan and find out how much they can borrow.

Simulate your mortgage loan 🏡