Buying or inheriting a home in Mexico from the United States

Many families who live in the United States dream of a house in Mexico, or already have one their parents left them. This guide explains what Mexico’s laws say about who can own property and how, what the fideicomiso (bank trust) is, why a Mexican notario is not a U.S. notary public, how an inheritance is handled and how to protect yourself from scams. It does not give advice on your case: for your purchase or inheritance, talk to a notary or a lawyer in Mexico.

Along the borders, part of the restricted zone

100 km²

Along the beaches, the other part of the restricted zone

50 km²

The longest a bank trust in the restricted zone can last, extendable

50 years²

The restricted zone: borders and beaches

Mexico’s Constitution (Article 27) says only Mexicans and Mexican companies have the right to acquire ownership of land. The State can give foreigners the same right if they agree before the Ministry of Foreign Affairs (Secretaría de Relaciones Exteriores, SRE) to consider themselves Mexican with respect to that property and not to seek their government’s protection; if they break the agreement, they lose the property. And in a strip of one hundred kilometers along the borders and fifty along the beaches, foreigners may not “under any circumstances” acquire direct ownership.¹

The Foreign Investment Law calls that strip the restricted zone (zona restringida).² Many places families look at, such as border cities and the coasts, are inside it. Before thinking about a purchase, ask which municipality the house is in and whether that municipality is inside, outside or partly inside the zone.

If you are Mexican by birth

Many people who read this guide were born in Mexico or are children of a Mexican father or mother. The Constitution says Mexicans by birth include those born in Mexico, whatever their parents’ nationality, and those born abroad to a Mexican father or mother. It also says no Mexican by birth may be deprived of their nationality.¹

The Nationality Law adds something important: Mexicans by birth who have or acquire another nationality, such as U.S. citizenship, act as Mexicans in the legal acts they carry out in Mexico and when holding real estate in Mexico. In those acts they may not seek the protection of a foreign government; anyone who does loses the property.³ In practice, the question for the notary is which documents you need to prove you are Mexican by birth.

The bank trust: how a foreigner buys inside the zone

If you are not Mexican and want a home in the restricted zone, the law does not let you be the direct owner. What it allows is a fideicomiso, a bank trust. A bank, as trustee, acquires the rights over the property with an SRE permit, and you, as beneficiary (fideicomisario), have the right to use and enjoy it. That includes living in it and getting its fruits and returns, for example from renting it, through third parties or through the bank.²

The law sets time limits. A trust in the restricted zone lasts at most fifty years, and can be extended if you ask. The SRE may check at any time that the permit conditions are met. And it must decide a permit request within five business days if filed at its central office, or thirty business days if filed at a state office; if it does not decide in that time, the request is deemed approved.²

Inside or outside the restricted zone

Borders and beaches

Inside the zone

• A foreigner cannot hold direct ownership
• A bank holds the rights in a trust with an SRE permit
• You have the use and enjoyment, up to fifty years, extendable

The rest of the country

Outside the zone

• A foreigner can acquire the property
• First they file a written agreement with the SRE to be treated as Mexican for that property
• In a municipality fully outside the zone, the permit is deemed granted if there is no denial in five business days

Even with another nationality

Mexican by birth

• You act as Mexican when holding real estate in Mexico
• You cannot seek another government's protection over that property
• The notary will tell you how to prove your nationality

Always ask which municipality the property is in before you sign or pay.

Outside the zone: the written agreement with the SRE

If the property is outside the restricted zone, a foreigner can acquire it. The Foreign Investment Law says they must first file with the SRE a written agreement accepting what Article 27 says: to be treated as Mexican for that property and not seek their government’s protection. They must also obtain the permit. If the property is in a municipality fully outside the zone, the permit is deemed granted unless the SRE publishes a denial in the Official Gazette within five business days. If the municipality is partly inside the zone, the SRE decides within thirty business days. The SRE may also set cases in which the written agreement is enough, without a permit.²

These steps are not a detail. The law says acts declared void for going against it have no legal effect between the parties or toward others. And public officers who certify documents, such as notaries, must attach to their deeds the documents with the authorizations the law requires; if they do not, they face sanctions.² That is why the notary should ask you for the SRE permit before you sign.

A Mexican notario is not a U.S. notary public

The word is the same, but the job is not. The California Attorney General explains that in many Spanish-speaking nations, notarios are attorneys with special legal credentials. In the United States, a notary public is a person authorized by the state to witness the signing of documents, and is not necessarily authorized to provide legal services.⁵ Our guide Notario is not a lawyer explains this difference in more detail.

What if you need to sign something here that has to work in Mexico? The Mexican consulate can help. According to the Consulate of Mexico in San Bernardino, consuls certify some acts carried out abroad, acting as notaries public, so those documents are valid in Mexico. A general power of attorneypower of attorney (POA)A power of attorney (POA) is a legal document that lets someone else act on your behalf. That person is called your agent. A financial power of attorney can help you plan ahead: it is generally "durable," meaning it stays in effect even if you can no longer make decisions. It can also be for something short-term, such as paying bills while you are away. If you show it to your bank, the bank should let your agent handle transactions for you. The CFPB warns that it gives a lot of authority over your money without regular oversight, so choose someone you trust deeply.See the full definitionClose can be for lawsuits and collections, for managing property or for acts of ownership, which include buying, mortgaging, donating or selling the grantor’s property. A special power of attorney is for one matter only. Documents are subject to review and acceptance.⁶

A power of attorney for acts of ownership gives a lot of authority: it lets someone else sell your house. Give it only to someone you trust deeply, and choose a special power of attorney for a single matter when you can.

Buying in Mexico from the United States, step by step

1. 1. Find the property's municipality

   First of all

   Ask whether the municipality is inside, outside or partly inside the restricted zone.²

2. 2. Decide how you will buy

   Before negotiating

   As a Mexican by birth, through a bank trust inside the zone or with the SRE filing outside it.²

3. 3. Choose a notary in Mexico

   Before paying

   They must attach to the deed the authorizations the law requires.²

4. 4. The SRE permit

   Before signing

   Inside the zone, the bank requests the trust permit; the SRE decides in five or thirty business days.²

5. 5. If you cannot travel, a power of attorney at the consulate

   If needed

   The consul acts as a notary so the power of attorney is valid in Mexico.⁶

6. 6. Send the money carefully

   When you pay

   Check the cost and the exchange rate before sending; you can generally cancel within 30 minutes.⁹

Inheriting a house in Mexico

Mexico’s Constitution says real estate is governed by the law of the place where it is¹, and the Federal Civil Code says rights over real estate are governed by the law of the place where it is, even if the owners are foreigners.⁴ So even if the heirs live in Texas or California, the family house in Mexico is handled under Mexican rules. Talk to a notary or a lawyer in the state where the house is; if you cannot travel, a power of attorney done at the consulate can let someone represent you there.⁶

If you are the one who owns a house in Mexico and want to leave it in order, the consulate can also help. According to the Consulate General of Mexico in Austin, you can make an open public will before the consul, who acts as a notary. It can only cover property located in Mexico. People who are not Mexican can also do it if the property is in Mexico. Witnesses must not be close relatives or heirs.⁷

If you also own a house in the United States, remember that one is governed by your state’s law. Our guide Wills, transfer-on-death deeds and inheriting a home explains the options here, and the one on how to hold title with family explains the ways to hold title in the U.S.

Example with real numbers

Two siblings who inherit their mother's house in Michoacán

An example in words, not a real case, of how they can organize it.

Where the house is

In Michoacán, outside the restricted zone

Where the siblings live

One in Chicago and one in Houston

Which law applies to the house

The law of the place where it is, in Mexico

How they are represented if they cannot travel

With a power of attorney done at the Mexican consulate, valid in Mexico

What they watch before signing

A special power of attorney for one matter, given to someone they trust deeply

Who handles the process

A notary or a lawyer in the state where the house is

The rules in the example come from Mexico's Constitution and the consulate.¹ If they plan to sell and split the money, the savings plan helps you decide what to do with your share.

Run it with your numbersDown payment savings plan

Scams that target people buying from far away

Buying from a distance makes you an easy target. Someone offers you “dirt cheap” land, sends photos and asks for an urgent deposit to hold it. According to the FTC, scammers pretend to be someone you know, say there is a problem or a prize, pressure you to act immediately and tell you to pay in a specific way. The FTC advises stopping and talking to someone you trust, and reporting the scam at ReportFraud.ftc.gov.⁸

If you are going to send money to Mexico, know your rights. According to the CFPB, before you pay you generally see the total cost with taxes and fees and the exchange rate, and you get a receipt saying when the money will be available. You can generally cancel within 30 minutes after sending, unless it was already picked up or deposited, and you can report an error up to 180 days later.⁹ Our guide Sending money abroad explains the tax on remittancesremittance transferA remittance transfer is an electronic money transfer you send from the United States to a person or company in another country through a remittance transfer provider, such as a bank or another financial services company. Federal law protects transfers above a minimum amount made by a provider in the normal course of its business. The provider must tell you, before and after you pay, the fees, taxes, exchange rate and how much the other person will receive, in your language if it advertises in it or served you in it. You have up to thirty minutes to cancel at no charge, if the money has not been picked up, and one hundred eighty days to report an error.See the full definitionClose.

If you were already scammed, our guide I was scammed: what to do now tells you what to do in the first hours.

If this is you

You were born in Mexico and are now a U.S. citizen

The law treats you as Mexican when holding real estate in Mexico; ask the notary how to prove it.³

Your children were born in the U.S. to a Mexican father or mother

The Constitution says children born abroad to a Mexican father or mother are Mexican by birth.¹

You want a house at the beach

If you are not Mexican, in the restricted zone you buy through a bank trust with an SRE permit.²

You want to leave your house in Mexico in order

The consulate can do a will before the consul for property in Mexico.⁷

You are asked for an urgent deposit for land

Pressure and the payment method are scam signs; stop and talk to someone you trust.⁸

Mistakes that cost you

• Mistake: Buying at the beach or the border in your own name when you are not Mexican.

  Instead: In the restricted zone foreigners cannot hold direct ownership; a bank trust with an SRE permit is used.¹

• Mistake: Signing before a U.S. notary public thinking it works like a Mexican notario.

  Instead: For a power of attorney to be valid in Mexico, do it at the Mexican consulate.⁶

• Mistake: Giving anyone a general power of attorney for acts of ownership.

  Instead: That power lets someone sell your property; choose a special power of attorney for one matter.⁶

• Mistake: Paying without the SRE permit in the deed.

  Instead: The notary must attach the authorizations; a void act has no legal effect.²

• Mistake: Thinking your U.S. will settles the house in Mexico.

  Instead: Real estate is governed by the law of the place where it is; the consulate can do a will for property in Mexico.¹

• Mistake: Rushing a deposit for a property no one has checked.

  Instead: Stop, talk to someone you trust and remember you can generally cancel a transfer within 30 minutes.⁹

What to do this week

1. Find out which municipality the house or land is in and whether it is in the restricted zone.²
2. If you were born in Mexico or your parents are Mexican, gather your Mexican birth certificate or theirs.¹
3. Find a notary in the Mexican state where the property is and ask which SRE authorizations you need.²
4. If you cannot travel, book an appointment at the consulate for a special power of attorney.⁶
5. If you want to leave your house in Mexico in order, ask the consulate about a will before the consul.⁷
6. Before sending money, check the total cost and the exchange rate, and keep the receipt.⁹