Foreigners Buying Beachfront Property in Mexico (2025): Understanding the Fideicomiso and Legal Steps

Thinking about a beachfront home in Mexico as a foreign buyer? There are clear rules, smart options, and a few pitfalls to avoid. This overview breaks down the restricted zone, the fideicomiso bank trust, permits, due diligence, taxes & closing costs, so buyers can plan with confidence and protect their investment from day one.

What Mexican law says about beachfront property for foreigners
Fideicomiso mechanics, fees and the timeline
Due diligence and compliance on the coast
Financing, escrow and managing risk
Common pitfalls, FAQs and resale expectations
Helpful resources and checklists
Conclusion
Related Posts
Frequently Asked Questions (FAQs)

Key Takeaways

Beachfront sits in Mexico’s “restricted zone.” Foreign buyers don’t take direct residential title there; they buy safely through a bank trust (fideicomiso) or a properly structured Mexican company for bona fide commercial use, with an SRE permit and a Notario Público at closing.
A fideicomiso runs 50 years, renewable; you hold beneficiary rights to use, lease, sell or mortgage. Expect setup & annual fees, trust drafting, and registration; on resale you can assign the trust or substitute the beneficiary… timing matters.
Do the homework: verify title and liens, survey and zoning, HOA bylaws, and proof a property isn’t ejido. On the coast, remember ZOFEMAT (the first 20 meters is public) and check any needed concessions plus environmental permits.
Budget realistically: typical closing costs land around 4–8% including ISAI transfer tax, Notario, appraisal, and registry. Ongoing predial is modest; ISR can apply on resale, and some new builds may have VAT. Use bank or notarial escrow, wire transparency, and smart currency exchange to cut risk.
Buyplaya is the premier real estate broker for foreign investors in Playa del Carmen, Tulum, and the Riviera Maya. The team has successfully helped clients for 20+ years purchase homes, condos, investment, beachfront and commercial properties in Mexico—coordinating permits & trusts, Notarios, and closings end‑to‑end.

Mexico beachfront home for sale

What Mexican law says about beachfront property for foreigners

Mexico welcomes foreign investment in real estate, but beachfront and border areas have special rules. The “restricted zone” defined in Article 27 of the Political Constitution of the United Mexican States is any land within 50 kilometers (about 31 miles) of the coast and 100 kilometers (about 62 miles) of international borders. In that zone, foreigners may not hold direct title to residential property. This restriction covers most of the Riviera Maya—Playa del Carmen, Tulum, Akumal, Puerto Aventuras, and coastal parcels down to the Sian Ka’an Biosphere Reserve.

The Constitution and the Foreign Investment Law allow practical workarounds:

Residential use in the restricted zone: A foreign buyer can acquire beneficial ownership through a bank trust known as a fideicomiso, with a Mexican bank as trustee and the buyer as the trust beneficiary. The trustee holds legal title, and the buyer enjoys all the rights of use, enjoyment, sale, lease, and inheritance.
Commercial use in the restricted zone: A Mexican company (sociedad) with foreign shareholders can acquire property directly for bona fide commercial purposes. Shell companies set up only to hold a vacation home are discouraged and can create tax and compliance issues later. If the intended use is mainly residential, a fideicomiso is the standard path.

An SRE permit is required. The Secretaría de Relaciones Exteriores (SRE) issues permits for trusts in the restricted zone and authorizes acquisitions by companies with foreign participation for non-residential use. The Notario Público (a senior notary-lawyer appointed by the state) oversees the transaction, applies for the SRE permit, calculates and withholds taxes, drafts and executes the public deed, and records the transaction with the Registro Público de la Propiedad (Public Registry of Property). Note that our earlier search returned no extract, so the explanations in this article rely on primary law and government sources, especially the Constitution’s Article 27 and the Foreign Investment Law.

Key primary references:

Constitution of Mexico, Article 27: https://www.diputados.gob.mx/LeyesBiblio/pdf/CPEUM.pdf
Foreign Investment Law: https://www.diputados.gob.mx/LeyesBiblio/pdf/LIE.pdf
SRE (permits and consular info): https://www.gob.mx/sre
Colegio Nacional del Notariado Mexicano: https://www.notariado.org.mx/
SAT (tax information, ISR on property sales): https://www.sat.gob.mx/

Outside the restricted zone, foreigners can hold direct title in their own name, still subject to general property and tax rules. For Riviera Maya beachfront and most near-beach purchases, plan for a fideicomiso.

Fideicomiso mechanics, fees and the timeline

How the trust is structured

A fideicomiso is a three-party trust:

Trustee: a Mexican bank authorized to act as a fiduciary. The bank holds title to the property for the duration of the trust.
Beneficiary: the foreign buyer (and any additional beneficiaries, such as a spouse or heirs). The beneficiary directs the trustee.
Trust purpose: usually “ownership, use, enjoyment, leasing, sale, and encumbrance of residential real estate in the restricted zone.”

The initial trust term is up to 50 years and is renewable for successive 50-year terms. The beneficiary can sell or transfer rights at any time, subject to the trustee’s standard procedures and applicable permits.

Rights you hold under the trust

The fideicomiso is widely used and considered secure. As beneficiary, you have the right to:

Use and enjoy the property, including living in it or leasing it long-term or short-term (subject to local permits and HOA rules).
Improve or renovate the property, respecting zoning, condo bylaws, environmental regulations, and coastal rules.
Mortgage the beneficial interest with lenders that lend in Mexico or cross-border lenders that accept the structure.
Sell or transfer the beneficial rights or instruct the trustee to convey title to another trust or buyer, including to a new trust for another foreign buyer or to a Mexican national.

The bank holds legal title only to comply with the Constitution; you hold the economic and practical rights. The deed of trust spells out these rights clearly.

Typical costs and ongoing fees

Costs vary by bank, property value, and location. In the Riviera Maya, the following ballpark figures are common:

Trust setup fee: USD $1,500 to $3,000, sometimes higher for high-value assets or complex structures.
Annual trustee fee: roughly USD $500 to $1,000+ per year, invoiced by the bank.
Trust amendment/transfer fee (on resale or adding beneficiaries): varies; often a few hundred to over a thousand USD depending on the bank.
Renewal at 50 years: usually a straightforward process with a renewal fee; can be advanced on resale or by request.

Closing costs besides bank trust fees include the acquisition tax (ISAI), notary fees, appraisal, registry fees, and due diligence costs. Total buyer closing costs in Quintana Roo commonly land around 4% to 7% of the declared value, sometimes more for smaller purchases due to fixed costs. Local practice matters; get a written estimate once an offer is accepted.

Step-by-step flow from offer to deed recording

Negotiate and sign an Offer to Purchase with clear contingencies (due diligence, SRE permit, trust approval, closing date).
Open escrow with instructions and a neutral third-party or notarial escrow. Wire the earnest money.
Notario and your advisor order due diligence: title search, certificate of no liens, cadastral and registry searches, survey, zoning/use-of-land certificate, HOA/condo documents, and environmental/coastal checks if applicable.
Apply for the SRE permit for the trust. The Notario and trustee bank coordinate the application.
Bank issues a trust acceptance letter. Notario prepares the draft trust deed, collects AML/KYC documents, and calculates taxes and fees.
Final walk-through, then closing: execute the fideicomiso deed before the Notario. Funds are released per escrow instructions.
The Notario records the deed with the Registro Público de la Propiedad and registers with the Cadastre (Catastro). Certified copies follow.

Typical timelines: 30 to 60 days for condos with clean history; land or special coastal parcels can take longer.

Why the fideicomiso is considered secure

Fideicomisos have been used for decades. Banks are tightly regulated and cannot act outside the trust terms. The Notario’s oversight adds a government-backed legal check, and registration at the Public Registry creates public notice of your beneficial ownership. Foreign lenders and title companies are familiar with the structure, which helps with resale and financing options. If a trustee bank merges or exits the business, the trust can be transferred to another authorized bank.

Due diligence and compliance on the coast

Title, surveys and land status

Solid due diligence protects your investment. In the Riviera Maya, where development has been fast, title confirmation is essential.

Title verification and no-lien certificates: The Notario obtains certificates of no encumbrances (certificados de libertad de gravamen), validates the seller’s chain of title and confirms recorded square meters and boundaries. Any liens, mortgages, or back taxes must be cleared before closing.
Survey and boundaries: A current topographic survey (levantamiento topográfico) validates boundaries and constructions; for condos, confirm the unit’s exclusive-use areas and assigned parking or storage match the condo regime.
Ejido vs. private property: Ejido land is communal agrarian land. Never buy ejido land unless it has been fully regularized to private property (dominio pleno) and recorded at the Registro Público. Ask for proof of conversion from the Registro Agrario Nacional and the public deed showing full private title. Skipping this step is the number one coastal land pitfall.

Zoning, HOA rules and beach/ocean issues

Zoning and land use: The municipal Uso de Suelo certificate shows permitted use (residential, mixed, commercial), density, height limits, and setbacks. For remodeling or building, check for additional licenses or environmental authorizations.
Condo bylaws and HOA: Review the Declaración de Condomino and Reglamento. Understand pet rules, short-term rental rules, quiet hours, balcony use, and maintenance obligations. Look at the HOA budget, reserve fund, insurance coverage, and any special assessments.
Coastal environment: The first 20 meters inland from the mean high tide line is the Federal Maritime Terrestrial Zone (ZOFEMAT). It is public federal land; it cannot be privately owned. Any exclusive use beyond that line—palapas, decks, beach clubs, docks—requires a ZOFEMAT concession. Ask for copies of any existing concession and verify it’s in good standing. Unauthorized beach improvements can draw fines or removal orders. In sensitive areas or for larger projects, environmental studies (MIA) and approvals from SEMARNAT may apply.

Tax, AML/KYC and closing money flows

Taxes at purchase and holding: Buyers pay the municipal acquisition tax (ISAI or its local equivalent) and registration fees, both handled by the Notario at closing. Annual property tax (predial) is comparatively low in Quintana Roo and payable at municipal offices or online. Keep receipts; discounts may apply for early payment.
Selling and capital gains (ISR): On resale, the seller pays ISR capital gains tax. For non-resident individuals, the Notario typically withholds either 25% of gross or up to 35% of net gain if documentation and appraisals qualify. Exemptions exist for Mexican tax residents and primary residences, but they do not apply to most foreign vacation homes. The Notario calculates and withholds ISR as required by the SAT.
AML/KYC documentation: Mexico’s anti-money laundering framework (LFPIORPI) requires identification of beneficial owners and lawful sources of funds. Expect to provide passport, proof of address, tax ID from your home country, and statements supporting incoming wires. Keep wire receipts and escrow ledgers for your records.

Financing, escrow and managing risk

Payment paths and currency exchange

Many Riviera Maya purchases are cash transactions, whether paying from savings, retirement accounts, or a home equity line in the buyer’s home country. Mexican mortgage options for non-residents exist but are still limited and can be slow. Developer financing may be available for new builds, typically with short terms and balloon payments.

For cross-border wires:

Confirm beneficiary details with your escrow holder using a verified call-back.
Understand currency conversion rates and fees. If wiring in USD, check if conversion happens at the Mexican bank or in your home country. Consider a regulated FX provider for transparent rates when moving large sums.

Escrow and holding funds

Use a trusted escrow solution. In our coastal market, that usually means:

Licensed third-party escrow companies with segregated accounts; or
Notarial escrow, where the Notario holds funds and releases per the signed instructions.

Escrow instructions should align with your purchase contract: define release conditions, closing date, prorations, and what happens if a condition is not met. Request proof of the escrow account’s status and jurisdiction.

Insurance and property operations

Homeowners insurance: Coastal policies should include windstorm and hurricane coverage. Deductibles for named storms are usually a percentage of insured value. For condos, confirm the HOA’s master policy and add a contents and improvements policy for your unit.
Maintenance and administration: Set up utilities after closing—CFE (electricity), water, gas, internet. For absentee owners, a property manager can handle bill payments, cleanings, and inspections, especially during storm season.

Short-term rental permitting

If planning to rent your beachfront condo or villa:

Verify the condo bylaws allow short-term rentals and what guest registration or security protocols are required.
Obtain municipal business licenses if required for lodging activities and comply with local lodging taxes. Register with SAT for tax compliance and e-invoicing if you operate rentals as a business. Rules evolve; keep documentation current and align with your property manager and accountant.

Common pitfalls, FAQs and resale expectations

Red flags to avoid and how to handle them

Buying ejido land that is not fully regularized to private property. Always demand proof of dominio pleno and recorded title.
Overlooking ZOFEMAT. Any deck, palapa, or beach furniture on the federal 20-meter strip needs a concession; fines can be steep.
Hidden liens or unpaid utilities/HOA dues. Require updated no-lien certificates and payoff letters; prorate dues at closing.
Using a Mexican company for a personal residence in the restricted zone. Unless the use is genuinely commercial, this can cause tax, compliance, and banking complications later.
Skipping HOA and building rule review. Renting, pets, renovations, and balcony enclosure rules are frequent sources of disputes.
Unclear escrow instructions. Spell out release triggers, including delivery of a clean trust deed and registry folio number.

FAQs on structure, timing and resale

Can a foreigner use an LLC or trust from another country to buy beachfront in Mexico?
Foreign entities can be beneficiaries of a Mexican fideicomiso, but a U.S. or Canadian trust/LLC does not replace the Mexican requirements. For residential beachfront inside the restricted zone, the Mexican fideicomiso remains the compliant structure.

How long does the SRE permit take?
Two to four weeks is common in Quintana Roo once the file is complete, but timing depends on workload and holidays. Build your closing timeline around the permit and bank trustee acceptance.

What happens at the end of 50 years?
The fideicomiso can be renewed for another 50-year term. Most owners renew well before expiration, and banks process renewals routinely. If you sell, the renewal can be processed as part of the transfer.

Can the property be mortgaged?
Yes. Some Mexican banks and international lenders will lend against the beneficial interest. Terms vary; developers may offer financing on presales. Always confirm the lender’s requirements for the fideicomiso structure.

How does resale work with a fideicomiso?
Two paths are typical:

Assignment of rights: Transfer your beneficiary rights to the buyer within the existing trust. Faster when the same bank will continue as trustee and the buyer is a foreign individual.
Trust substitution: The trustee conveys title to a new trust for the buyer (or directly to a Mexican buyer), then cancels the old trust. Slightly longer and may involve higher bank fees.

Buyers still require an SRE permit and trustee approval. The Notario coordinates permits, calculates taxes, and records the transfer. Expect 30–60 days if due diligence is clean.

Are there extra taxes on resale for foreigners?
Sellers pay ISR capital gains tax. For non-residents, the Notario withholds at closing. Planning, appraisals, and documented improvements can lower the taxable gain under certain methods allowed by law. Engage a local tax professional early.

Helpful resources and checklists

A few authoritative places to verify the rules you’ll encounter in the Riviera Maya:

Constitution of Mexico, Article 27 (restricted zone and foreign ownership language): https://www.diputados.gob.mx/LeyesBiblio/pdf/CPEUM.pdf
Foreign Investment Law (bank trusts and foreign participation): https://www.diputados.gob.mx/LeyesBiblio/pdf/LIE.pdf
Secretaría de Relaciones Exteriores (permits and processes): https://www.gob.mx/sre
Colegio Nacional del Notariado Mexicano (what a Notario does and why it matters): https://www.notariado.org.mx/
SAT (federal tax matters, including ISR on property sales): https://www.sat.gob.mx/

For an overview of the buying process specific to foreigners in Playa del Carmen, Tulum and the Riviera Maya, see this article from our team: Mexico real estate for foreigners: buying property made simple.

Practical tools and templates help keep your purchase on track:

Offer to Purchase: A bilingual, Riviera Maya–specific offer with due diligence timelines, escrow provisions, and clear contingency language. Your broker should prepare this with the Notario’s input. Ask for a one-page summary of key terms.
Due Diligence Checklist: A property-specific list prepared by your advisor and the Notario—public registry folio, no-lien certificate, appraisal (avalúo), survey, condo regime documents, HOA standing letter, Uso de Suelo certificate, environmental or ZOFEMAT documents where applicable, and utility clearance letters.
Escrow Instructions: A plain-language set of wiring and release instructions, matching the purchase contract, signed by buyer and seller and acknowledged by the escrow holder. Include bank coordinates, conditions to close, and what happens if a condition fails.
Closing Cost Estimate: A written estimate built on the declared price and the municipality’s current rates for ISAI, notarial fees, registry fees, trustee fees, and escrow costs. Update it once the SRE permit and valuation are set.

Finally, plan your timeline. Coastal deals that start with a clear offer, move promptly into document collection, and submit the SRE application early tend to close smoothly. Keep communication tight among your broker, Notario, trustee bank, and escrow holder. Small delays—an HOA letter, a survey update, or a missing utility receipt—are common, and building a bit of slack into the schedule helps.

Conclusion

Buying beachfront in Mexico is doable: know the restricted zone, use a fideicomiso, verify title & permits, and plan taxes. Work with a Notario, budget closing fees, avoid ejido risks; timing matters. With 20+ years assisting clients, Buyplaya Real Estate Advisors is the premier real estate broker for foreign investors in Playa del Carmen, Tulum, and the Riviera Maya. Connect to outline goals, schedule viewings and begin due diligence today.

Frequently Asked Questions (FAQs)

Are there restrictions on foreigners owning beachfront property in Mexico?

Yes—there are rules, but there’s a clear path. Beachfront areas fall inside Mexico’s “restricted zone” (50 km from the coast and 100 km from borders). Foreigners can’t hold direct residential title there, but can own beneficially through a bank trust called a fideicomiso, or via a Mexican company when there’s true commercial use. Purchases require an SRE permit and closing before a Notario Público. The framework comes from Article 27 of the Constitution and the Foreign Investment Law; see the official text at the Mexican Congress site: https://www.diputados.gob.mx/LeyesBiblio/pdf/CPEUM.pdf

How does a fideicomiso work for beachfront purchases in the restricted zone?

A fideicomiso is a bank trust. The bank (trustee) holds title for your benefit; you are the trust’s beneficiary with full rights to use, lease, improve, sell, or mortgage the property. Terms are 50 years and renewable, so control remains with you. The steps usually flow like this: agree on price, run due diligence and a survey, secure the SRE permit, the trustee drafts the trust, then you close with a Notario & record the trust at the Public Registry. You keep the original trust deed; when selling, you can assign the trust or substitute a new beneficiary. More on the permit here: https://www.gob.mx/tramites/ficha/permiso-para-adquirir-bienes-inmuebles-en-zona-restringida-para-personas-fisicas-extranjeras/SRE206

What costs and taxes should a foreign buyer expect for beachfront property?

Plan for trust setup and annual trustee fees, the SRE permit fee, notary fees, appraisal, municipal transfer tax (ISAI), and registry charges. In the Riviera Maya, total closing costs commonly land around 4–8% of the price (varies by municipality & property). Annual property tax (predial) is generally low. On a future sale, Mexican income tax (ISR) may apply; the Notario calculates it at closing, with allowable deductions and documentation. New construction can carry VAT on the construction portion; resale homes often do not. Always confirm with your Notario and an accountant. SAT’s page on ISR for property sales: https://www.sat.gob.mx/

How long does it take to close, and what paperwork is needed?

Typical timeline is 30–60 days. The SRE permit usually takes about 2–4 weeks; the rest depends on due diligence and the bank trust draft. You’ll need a valid passport, proof of address, basic KYC/AML info on the source of funds, a Mexican tax number (RFC) in many closings, and if married, marriage certificate details. The Notario verifies title, liens, zoning, condo bylaws, plus any beachfront matters like ZOFEMAT boundaries. Funds are wired into escrow or a notarial account for safety. A bit of patience helps… permits and bank sign-offs can add a few days.

Why is Buyplaya the premier real estate broker for foreign investors in Playa del Carmen, Tulum, and the Riviera Maya?

Because Buyplaya has successfully assisted clients for over 20 years purchasing homes, condos, investment, beachfront, and commercial properties in Mexico—day in, day out. The team coordinates SRE permits, fideicomisos, Notarios, surveys, and escrow with proven partners, while keeping communication simple and fast. That local experience reduces risk, speeds closings, and helps buyers understand fees, taxes, and HOA rules without surprises.

Table Of Contents

Key Takeaways

What Mexican law says about beachfront property for foreigners