There was a period in Mexico’s history when buying property as a foreigner was out of reach. That’s because Mexico once had restricted zones, which prevented non-Mexican residents from owning land within 100 kilometers of the border or 50 kilometers of the coast. But in 1993, everything changed when former President Carlos Salinas de Gortari amended this restriction to welcome billions of dollars in foreign investment into the country under the NAFTA free trade agreement.
It may be said that Salinas is a key reason why the dream of retiring in a Mexican beach town is possible in 2025. A fideicomiso is the most common way for non-Mexican residents to buy a condo these days. The bank owns the property, yet the beneficiary retains all the rights of ownership. This means a foreign investor can live in the property, sell, mortgage, or even rent it out through Airbnb.
If you’re entrepreneurial and want to start a business in Mexico, that’s another viable option. You can register a corporation, set up office headquarters, and place yourself as a shareholder. This gives you the ability to buy a home since your business will be considered a legal entity, and you’ll be contributing to the economy via taxes.
How to buy real estate on the Riviera Maya
Since the Riviera Maya is one of Mexico’s most popular regions for expats to invest in beach-filled areas like Tulum, Playa Del Carmen, Cancún, Puerto Morelos and Cozumel, I reached out to a well-known real estate expert named Susana Macdonald to get more insight on how the buying process works.
Having appeared on shows like “House Hunters,” Macdonald has been a licensed real estate sales advisor in the Riviera Maya for 13 years. She has also collaborated with the YouTube Channel “Dream Retirement Mexico,” where she provides valuable insight on the Mexican real estate market.
Every time I go anywhere within Quintana Roo, I always think about someday calling somewhere in that region home. But if I were to buy property myself in, say, Bacalar, I wanted to understand what unexpected fees were involved in buying my dream condo.
What to know about unexpected fees before you buy
“What always catches my clients by surprise is the high percentage of closing costs,” Macdonald told me. “In the Riviera Maya, the acquisition cost alone will range from 3% to 4% as a buyer. The notary fee can also be as high as 6%. Appraisal costs are something else to keep in mind. But the good news is, once you buy a property, the maintenance costs and property taxes are usually low. The trust fees you have to pay each year to maintain your investment will also be quite reasonable.”
According to Macdonald, the fees that go along with buying property in Mexico can be up to 10%. It’s worth keeping in mind the next time you browse your favorite real estate site online.
“It comes down to where you decide to live,” Macdonald said. “For example, the acquisition cost of buying property in Tulum is the highest at 4%. Cancún is 3.3%. Playa del Carmen and Bacalar are both at 3%. The list goes on. Prices and acquisition costs vary by municipality. That’s why it’s important to do your research and be sure you’re aware of what’s involved in purchasing your dream home. It’s also worth consulting a lawyer to help represent your best interests.”
The importance of finding a good real estate agent
I was pleased to learn it’s realistic to pay less for the acquisition if you manage to find an undiscovered hidden gem in a less frequented area by tourists. Macdonald added that certain areas within the state of Yucatán have acquisition costs as low as 2.5-3%.
The more we spoke, the more I realized how knowledgeable she was about the real estate world in Mexico. It also made me curious to understand what I should look for in an agent once I am in the market for a little apartment in a chill Mexican beach town.
“So I feel it’s important to deal with an independent real estate agent because you’ll have a much more personalized experience,” Macdonald said. “You have agents that work for the developer and represent only one project or commercial building. But independent agents, such as myself, are not tied to one entity and can help you shop around in multiple neighborhoods. We’re in a good position to help find the best opportunities for our clients and make sure they’re able to get what they need.”
Building a relationship with your real estate agent
Macdonald also stressed the importance of building a relationship with her clients. That way, they have an ally to help navigate any problems that may arise down the line. Sometimes, even long after the sale is made, Macdonald will be available to help them.
“I think if somebody sits down and talks to me, they have the expectation of wanting to do business with me, and I have to provide them that service. Even when the transaction is finished, I encourage my clients to call me if they need anything. Moving to Mexico is a big decision, and I try to be the best advocate that I can be so they are happy.”
What to budget beforehand
If you’re looking at a property that goes for US $200,000, the most crucial takeaway is to budget at least $20,000 more in order to prepare yourself for the other fees. It’s also worth exploring your options because Mexico has plenty of great beach towns and homes. But if you have any more questions, you can reach Macdonald on her website and book a call.
So, are there any other expenses that we haven’t gone over in Mexico’s Riviera Maya? Let us know in the comments below.
Ian Ostroff is an indie author, journalist, and copywriter from Montreal, Canada. You can find his work in various outlets, including Map Happy and The Suburban. When he’s not writing, you can find Ian at the gym, a café, or anywhere within Mexico, visiting family and friends.
