Owning your beachfront home in Mexico: tips for international buyers

Before buying your beachfront home in Mexico, it’s necessary to spend time learning about the Mexican real estate market and ownership laws.

Mexico: a paradise for beachfront living

As an international buyer looking to purchase beachfront homes in Mexico, Oaxaca should be at the top of your list.

Specifically, Puerto Escondido offers miles of pristine beaches, a low cost of living, and a relaxed vibe that attracts expats and travelers from all over the world.

However, if you’re wondering how feasible it is to acquire property in Mexico as a foreigner, there are certain requirements.

According to El Economista, the Mexican real estate sector has stood out for offering annual returns exceeding 6%, attracting interest from investors of various nationalities. However, Mexican legislation states the following:

Article 27º, Constitución de 1917 establishes restrictions on the acquisition of properties located within 100 km of the country’s border and 50 km of the coastal strip. These areas cannot be directly acquired by foreigners. Nevertheless, there is a legal solution for those wishing to invest in these zones.

To acquire property in these restricted areas, a foreigner can choose to establish a trust. In this scenario, the foreigner becomes the beneficiary, while the bank acts as the trustee, all regulated by the Law of Credit Institutions. The trust has an initial duration of 50 years, with the possibility of renewal for an equal period.

This structure allows foreigners to enjoy the benefits of owning real estate in Mexico, providing a legal and secure solution to overcome the limitations imposed by legislation.

Thus, those wishing to establish their home or invest in this country full of opportunities can explore these options with confidence and legal certainty.

Tips for buying your beachfront home for sale in Mexico

Keep in mind the requirements as a foreigner

Outside of the border area, you can purchase property without the need for a trust, if you have a temporary or permanent residence permit in Mexico, issued by the National Immigration Institute and you obtain a Federal Taxpayers Registry (RFC) before the Tax Administration Service (SAT) to pay the corresponding taxes in Mexico.

In the border strip, you will need a trust, that is, a legal figure to acquire real estate in Mexico that grants the right of ownership and gives the possibility to manage and sell the property.

Consider other costs

In addition to the purchase price, include in your budget closing costs, which usually represent about 10% of the sale price for probate as well as an annual property tax.

Request the location and type of property you are interested in.

Consider what lifestyle you desire: a secluded home on the beach, a condominium near restaurants and nightlife, or a residential community. Property values will vary significantly depending on the exact location and amenities. Waterfront homes will likely maintain their value over time, especially if they are in a desirable area.

Apply for a mortgage loan if you require it

Once you have selected a property, the next step is to obtain a mortgage loan. In Mexico, several banks offer mortgage loans to foreigners.

The requirements may vary from bank to bank but generally include the presentation of ID, such as a passport, visa, or temporary residency card, as well as proof of income, employment, and tax status.

Some of the things to consider when choosing a mortgage loan are the interest rate, the term of the loan, and the fees charged.

Seek the help of a local real estate agent

Working with a real estate agent who specializes in beachfront homes for sale and understands the buying process for foreigners will be helpful, as they can help you find listings, find the best deal, and guide you through the legal requirements.

You might be interested in: Why invest in real estate in Puerto Escondido?

If you are interested in a beachfront home for sale in Puerto Escondido, make sure that any agent you work with is licensed and has a good track record with foreign buyers.

Osan Puerto is a clear example, as in addition to being AMPI certified, they can help you get the most out of your investment in a beachfront home in Puerto Escondido.

Contact us today for more information and begin your journey to owning a piece of paradise.