Purchasing Property in Mexico

Currently, In Order to Purchase Property In Mexico, You Must Have:

  • A valid passport
  • A valid credit card (the bank trust charges are currently charged to this credit card)
  • And if you are in Mexico, the tourist visa issued by the Mexican government when you entered the country.
  • You have to possess an FM-3 Resident Immigrant Visa. An FM-3 costs approximately $98.00 US per year, per person, and is renewed annually. It allows you to keep a US plated vehicle in Mexico, to leave and return at will, open and maintain a Mexican bank account, and can exempt you from capital gains tax when selling and allows you to purchase property in Mexico.

The Fideicomiso

Many years ago, to protect Mexico from having the wealthy countries buy all the desirable land (near the border and coastal areas) they (The Mexican Government) created the Fedeicomiso or Bank Trust, which has a yearly administration fee.

  • It is not a lease,
  • The land is put in a trust issued by the federal Mexican government,
  • The trust owns the land,
  • You own the trust,
  • The bank administers the trust. The bank has no ownership rights to the trust,
  • They cannot “take it back”’,
  • Trusts are now for the duration of 50 years, with the right to renew for 50 more years at the expiration date.

When you purchase a home in Mexico, you will pay:

The Negotiated Price of the Property – This amount we know, as it is fixed at your agreed on purchase price.

The Bank Trust (Fideicomiso) – This charge can vary depending on the bank you choose, but be prepared for approximately $2,250 US. A portion of that fee is for the bank, but the bulk is paid by the bank to the federal Mexican government. This fee covers all the trust documents, permits and the first year’s administration fee.

The Closing Costs – These fees are paid to the Notario Publico. They include, among other items: 

A. Title search to ensure the person selling the property is actually the owner or has the legal power to sell the property.

B. Lien search to make sure there is not a hidden claim on the property.

C. Appraisal to set the tax value.

D. New plot plan showing the lot dimensions.

E. A new deed. Verifying all taxes, phone bills, water bills, electric bills are current and paid up to date.

F. Registration of the new deed once everything is complete and all fees have been paid.

G. The acquisition tax, paid by the buyer in Mexico. Approximately 2.5% of the purchase price.

So, what are the actual costs?


This again is a variable. An approximation is: for a $150K to $200K property, about 4 to 5%, and it drops correspondingly for higher values.

But… about all the charges you’ve heard rumored you’re going to be hit with… don’t get scared… they aren’t nearly as bad as you thought they would be.

ADDITION, Feb 3, 2013  The amount has gone up to move to Mexico – see – http://consulmex.sre.gob.mx/detroit/index.php/info-english

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5 Responses to Purchasing Property in Mexico

  1. Dianne Davis

    May 20, 2013 at 12:38 am

    So … Basically the rules are that you must be fairly well off financially to be allowed to live in Mexico. Isn’t that right? Because there’s nothing affordable or cheap anymore about living in Mexico if you need $120,000 in the bank! (And if I sound a bit disappointed, I am.) People who are already living in Mexico no longer meet the financial requirements to remain in Mexico is what I have heard.

  2. Eddie Flores

    May 22, 2013 at 3:05 am

    I think you are one zero too many on your numbers. Everything I have read that is published states a verified income of $1000.00 or $12,000 in your bank account.

  3. Barbie


    June 2, 2013 at 1:57 pm

    “the last six months of your bank statements with a minimum average balance of $2,300 US dollars per month; or pay roll stubs with a minimum income of $750.00 US dollars per month, employment letter specifying your position and salary during the last six months; or, you can also submit official documents proving the ownership of a real estate property/company/business for the last two years.”……Barbie

  4. Make Money Online

    August 1, 2013 at 10:33 am

    Have you ever thought about publishing an ebook or guest authoring on other blogs?
    I have a blog centered on the same information you discuss and would love to have
    you share some stories/information. I know my readers would value your work.
    If you are even remotely interested, feel free to send me an email.

  5. Barbie


    August 2, 2013 at 1:06 pm

    Hello. I already have two e-books offered on line and on Amazon. What can you do for me, and what could I do for you? Barbie

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