To buy property in Mexico while living in the United States, you typically need official identification, an RFC, a trust if the property is near the coast, a notary public, and—if you won’t be traveling there—a power of attorney. Mexico Property Partner (MPP) coordinates these steps for buyers in Playa del Carmen.
None of these requirements is a reason not to buy. The problem is that they come at different times, and if one is delayed, it holds up the signing or the delivery. Below are the 7 requirements, what each one is for, and what to check.
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Can a foreigner buy property in Mexico?
Yes. Foreigners can buy property in Mexico, including condos in Playa del Carmen. The main difference is the legal process. Near the coasts and borders, there is a restricted zone where foreigners purchase homes through a bank trust, rather than having the deed registered directly in their name. Playa del Carmen is located within that zone. If you were born in Mexico and live in the United States, you may be able to purchase property directly. A notary can confirm which process applies to your situation.
7 Requirements for Buying Property in Mexico
1. Valid passport or official identification
The notary, the bank, and the developer will ask you for identification at various points in the process. Make sure your passport doesn't expire during the process and that your name is spelled the same on all documents. Even minor differences in your name can cause delays in the closing process.
2. RFC
The RFC is the Federal Taxpayer Registry assigned by the SAT. It is typically required for property registration, and if you plan to rent out your apartment on platforms like Airbnb, to fulfill your tax obligations related to that rental income. Apply for it before signing the purchase agreement. You can find information about the process on the official website of the SAT. MPP coordinates tax matters with its accountants. If you live in the United States, be sure to also check out the guide from How to Apply for an RFC from the United States.
3. Trust in the coastal area
To purchase property in Mexico within a restricted zone, a foreign buyer typically acquires it through a trust with a Mexican bank. The bank holds title in its name as trustee, and you retain the rights to use, rent, sell, or bequeath the property. To establish this trust, you need permission from the Ministry of Foreign Affairs, the SRE, which are typically handled by the bank and the notary. Ask which bank will serve as the trustee and what your annual fee covers.
4. A notary public
In Mexico, a notary public is a lawyer who serves in a public capacity to validate the sale, calculate the taxes on the transaction, and record the deed. After it is signed, the deed is registered in the public property registry. Ask who chooses the notary and whether you can suggest one.
5. Power of attorney if you are not going to travel
A power of attorney authorizes someone you trust to sign documents or carry out procedures on your behalf. If you live in the United States, it’s typically issued at a Mexican consulate, which has notarial functions. Limit its scope to what you need for that purchase, and ask the notary in Playa del Carmen to review the text before your appointment at the consulate, so you don’t have to repeat the process.
6. Money for closing costs
When you buy property in Mexico, the purchase price isn’t the only cost. Closing costs may include local taxes and fees, notary fees, an appraisal, and the establishment of the trust. The total depends on the purchase price, the type of transaction, and the terms of your contract. Ask for a written breakdown before signing the contract and review which costs the contract assigns to the buyer.
7. A revised contract and a clear path for your money
Before signing, have a lawyer review the purchase agreement, especially the clauses regarding delivery delays, closing costs, and what happens if either party cancels. Also plan how the money will be transferred. Notaries in Mexico may request documents regarding the source of funds, so keep a record of your transfers.
What Changes If You Buy During the Pre-sale
During a presale, you typically sign a contract with the developer and pay a portion of the price while construction is underway. The deed is signed later, when the unit is handed over to you. Ask what document protects you in the meantime, when the deed will be signed, and what happens if the handover is delayed. If you plan to take out a loan, read about how a Mortgage in Mexico for those who live in the United States.
If you're going to rent the apartment
Many buyers decide to purchase property in Mexico, in Playa del Carmen, to rent it out to vacationers. Before buying, review the condominium bylaws, because some buildings limit or restrict vacation rentals. Also ask about the maintenance fee and what it covers, as it reduces your net income each month. If you’re planning to buy property in Mexico to rent it out, request a financial analysis with both a conservative and an achievable scenario—including closing costs and furniture—before choosing a unit.
5 Mistakes to Avoid When Buying Property in Mexico from the United States
Most delays stem from the order of the steps, not the steps themselves. These are the mistakes that hold back those trying to buy property in Mexico from abroad:
- Save the RFC for the last week. If you want to buy property in Mexico without delays, apply for the RFC as soon as you’re serious about making a purchase.
- Schedule your appointment at the consulate as soon as possible. Appointments can take weeks to secure, and the closing date won't wait for you.
- Sign the purchase agreement before a lawyer reviews it. It's easier to request changes before you sign than after.
- Assume that closing costs are included in the price. Ask for a written breakdown and compare it to the contract.
- Don't choose a unit based solely on photos and the developer's rental projections. Ask for videos of the building and a rental analysis based on units that are already operating in the area.
A local team helps you buy property in Mexico in the right order: first, the RFC; then, a review of the contract before signing; next, the power of attorney before the closing date; and finally, the inspection before delivery.
How Mexico Property Partner Works
MPP is a French-Mexican agency based in Playa del Carmen that guides buyers through the entire process from start to finish. Andrés Galvez, one of the partners, has been working in the vacation rental industry since 2017. MPP officially launched in 2019 and manages about 50 apartments on Airbnb in the city.
In terms of administrative procedures, the team:
- They guide you through the process of obtaining your RFC and coordinate tax matters with their accountants.
- He'll help you prepare the power of attorney and assist you with scheduling an appointment at the consulate.
- Review the developer's contract and the closing cost provisions with an attorney before you sign.
- Coordinate the deed execution with the notary.
- Have someone with power of attorney pick up and inspect the vehicle if you are unable to travel.
- It connects you with certified mortgage brokers if you need a loan.
Here's an example: A Mexican investor living in California bought three apartments in Playa del Carmen using MPP, without having to travel for each step of the process.
MPP does not provide legal or tax advice. It describes the process and coordinates with the professionals who provide such services.
When Mexico Property Partner Is a Good Choice
- You live in the United States and can't travel for every signing.
- This is your first time buying property in Mexico, and you're not sure what order to follow.
- You want a single team to coordinate the notary, accountants, and consulate on a single calendar.
When Mexico Property Partner May Not Be the Best Option
- Shopping outside the Riviera Maya. MPP is based in Playa del Carmen and operates in the Riviera Maya.
- You already have a trusted lawyer, accountant, and notary handling your purchase.
- You're just looking for legal or tax advice. For that, go directly to a lawyer or accountant.
There is no one-size-fits-all option. It depends on your budget, your goal, the type of property, and your experience buying in Mexico.
Questions to Ask Before Buying Property in Mexico
Can I buy property in Mexico without an RFC?
You'll usually need it to register the apartment and to rent it out. Take care of it right away so it doesn't delay the signing.
Am I the owner if the property is held in trust?
The bank holds title as the trustee, and you, as the beneficiary, retain the rights to use, rent, sell, or bequeath the property. The notary explains the terms of your trust to you before you sign.
Can I draw up a power of attorney in the United States?
Yes, at a Mexican consulate. First, ask the notary in Playa del Carmen for the exact wording so it can be used for your purchase.
How much does it cost to register a property in Playa del Carmen?
It depends on the price, the type of transaction, and your contract. Ask the notary for a written breakdown before signing. MPP will review the closing cost provisions with you.
Written by Jade Mons and Andrés Galvez, partners at Mexico Property Partner. Meet the team at About Us.
If you're considering a purchase in Playa del Carmen, you can Schedule a call with the Mexico Property Partner team here.
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