How to buy property in Mexico as a foreigner: Guide to a secure investment

Buying beachfront property in Mexico is becoming increasingly popular among international investors seeking paradise-like destinations with strong appreciation potential, such as the coasts of Puerto Escondido.

The appeal is clear: year-round warm weather, a lower cost of living, stunning beaches, and a culture known for its hospitality. Whether you’re looking for a condo or a beachfront home for sale in Mexico, this guide will help you purchase safely — and more importantly, ensure your investment is smart and has the potential to deliver returns in the future.

1. Can I buy beachfront property in Mexico?
2. Understanding the Fideicomiso
3. How can I buy a house in Mexico: Step-by-Step guide
4. Common pitfalls and how to avoid them
5. Work with trusted agents

1. Can I buy beachfront property in Mexico?

Yes, foreigners can buy beachfront property in Mexico.

Although Article 27 of the Mexican Constitution originally restricted foreign ownership within 50 km (31 miles) of the coastline or 100 km (62 miles) of the borders, these regulations have been adapted to encourage foreign investment.

Today, foreign buyers can legally acquire beachfront real estate in these restricted zones through a Fideicomiso.

2. Understanding the Fideicomiso

A Fideicomiso is a bank trust agreement that allows foreigners to legally purchase property within Mexico’s restricted zones (approximately 31 miles from the coastline).

How does it work?

• It is regulated under Mexican banking and trust laws, providing strong legal protection for foreign investors.
• As the sole beneficiary, the foreign buyer holds full rights to use, rent, improve, sell, or transfer the property to heirs.
• The trust is valid for 50 years, and can be renewed indefinitely in additional 50-year increments.
• Contracts can be digitally signed through certified platforms with full legal validity—making remote property purchases both easy and secure.

In places like Puerto Escondido, located on Mexico’s Pacific coast, foreigners who wish to purchase property are required to do so through a Fideicomiso.

If you’re considering buying a beachfront property in Mexico, download our Property Pricing Guide in Puerto Escondido.

You’ll learn about current market trends, property appreciation, and how to make a secure and profitable investment in one of Mexico’s most promising regions.

3. How can I buy a house in Mexico: Step-by-Step guide

Step 1. Choose the right property: Work with a licensed, bilingual real estate agent familiar with the local market. For instance, Puerto Escondido real estate market offers everything from stunning beachfront condos to scenic hillside lots with panoramic views.

Step 2. Sign a purchase agreement: Once you find a property, sign a Contrato de Promesa de Venta outlining terms and timelines. Contracts are legally binding and drafted in Spanish.

Step 3. Conduct title search and due diligence: Hire a Notario Público to verify property title, check for liens, and ensure legality of the sale.

Step 4. Establish your Fideicomiso: Your agent or lawyer will help coordinate with a Mexican bank to create your Fideicomiso or transfer an existing one.

Step 5. Pay taxes and fees: Expect to pay acquisition tax, notary fees, trust setup and annual fees.

Step 6. Sign the deed: The final document, the Escritura Pública, is signed before the notary. You become the legal beneficiary of the trust.

Step 7. Work with a trusted Real Estate partner, like Osan Puerto Real Estate, which specializes in assisting international buyers in purchasing property in Puerto Escondido and along the Oaxaca coast.

We offer personalized support in your language—Spanish, English, or French

4. Common pitfalls and how to avoid them

Buying property in Mexico can be a safe and rewarding experience—but only if you take the right precautions. Here are some of the most common mistakes foreign buyers make, and how to avoid them to protect your investment:

• Verify the property title: Before moving forward with any transaction, make sure the property is properly registered in the Public Registry and is free of liens, debts, or disputes.
• Never send money without verification: Wire fraud, fake listings, and unclear terms can create serious risks. Some buyers make deposits without verified contracts or never meet the seller in person.
• Skipping legal due diligence: Some buyers rush into a deal without verifying property titles, permits, or zoning regulations. Always work with a certified notary and real estate attorney who can thoroughly verify the property’s legal standing.

By staying informed and working with trustworthy professionals, you can avoid these common pitfalls and make a safe, secure, and profitable investment in Mexican real estate.

5. Work with trusted agents

At Osan Puerto Real Estate, we specialize in helping international buyers navigate the legal process of purchasing property in Puerto Escondido, offering multilingual support every step of the way.

Whether you’re investing for rental income, retirement, or long-term growth, we make sure your purchase is safe, strategic, and financially sound—so you can enjoy both the lifestyle and the returns of owning property on Mexico’s Pacific coast.

Looking for the best Puerto Escondido homes for sale? Contact us to find the perfect property in a secure and profitable way.

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