Your guide to buying a holiday home in Mexico

5 min read

With its azure blue waters, tropical climate and ancient history, Mexico is not only a popular holiday destination, but an ideal place to buy property. Whether you want a home to retire to, live as a family or purchase an investment property, Mexico offers a dream lifestyle.

Mexico’s culture, stunning scenery and relaxed lifestyle are perfect if you’re looking to buy property abroad outside Europe.

Follow our guide to buying a home in Mexico, from the process to follow to the best locations.

How to buy a property in Mexico

You must conduct thorough research and understand local regulations and property laws in Mexico to ensure the process goes smoothly.

What is the fideicomiso “trust”?

You may have heard this term but not be sure what it means.

The fideicomiso¹ is a legal way foreign buyers can purchase property in Mexico within what is known as the Restricted Zone. It is a 50-year trust fund set up to get around the regulation preventing foreigners from buying in this zone.

The Mexican bank buys and owns the property, while the purchaser enjoys all the rights of property ownership. The property is not considered an asset of the bank so you can sell it whenever you wish.

Good to know

The Restricted Zone officially includes all land within 100 km of the borders of Mexico and 50 km of the coast. The regulation preventing foreigners from purchasing in this area was established in 1917 to give locals access to property.

If you want to buy a property in the Restricted Zone we can advise you on how to find a reputable notary to help you navigate your purchase.

Why do I need a notary when buying in Mexico?

Unlike in the UK, where you just need a lawyer to buy a property, in Mexico, you need a notary. The notary is a government-appointed person who is qualified in Law and ensures that everything is legal regarding the property purchase.

The notary’s role includes:

  • drawing up and notarising the legal documents
  • checking all the certificates and permits are valid
  • informing the buyer of any potential problems (boundaries, limitations of use etc.)
  • passing the title deeds from the seller to the purchaser
  • overseeing the transaction
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Where are the best places to buy property in Mexico?

This depends on whether you want to live by the sea, in a city or inland. Finding your dream home and doing your research is the enjoyable part of buying a home in Mexico.

Whether you dream of a beachfront home, a sprawling colonial villa in the countryside or a city apartment, Mexico has all kinds of properties and locations to choose from.

Buying property in Mexico is also an ideal investment opportunity to rent out a holiday home and generate income, due to it being a popular tourist destination.

Good to know

There was a 5.8% increase in foreign visitors to Mexico between January-November 2023 on the previous year².

Here’s a summary of the most popular Mexican destinations:

  • Cancún and the Riviera Maya – known for its stunning beaches on the Caribbean coast this bustling city next to the coast is a lively location with plenty of bars and restaurants, water sports and a thriving expat community.
  • Puerto Vallarta – set on Mexico’s Pacific coast, Puerto Vallarta is ideal if you love the beach. This seaside town is popular with home buyers wanting to live near the ocean and be part of the local community.
  • Los Cabos – located at the southern tip of the Baja California Peninsula, Los Cabos boasts luxury resorts, golf courses, and picturesque landscapes, making it an ideal destination for property investment, a holiday home or retirement living.
  • San Miguel de Allende – if you want to be part of the culture of Mexico San Miguel de Allende is for you. With its charming atmosphere, colonial architecture and artistic influence, this town attracts many international buyers.
  • Mexico City – the country’s capital offers diverse districts and caters to a wide range of budgets. If you want to live in a busy city and have permanent access to things to do, cultural events and the Mexican way of life choose this location.
  • Tulum – known for its eco-friendly resorts, ancient ruins, and lush jungle, this is a small beach community where you can relax in stunning surroundings. Bicycles are the main form of transport here, making exploring the area a pleasure.
  • Merida – located on the Yucatan Peninsula, Merida offers a blend of colonial architecture, Mayan heritage, and modern living. With its laid-back atmosphere and cultural heritage, Merida offers a taste of the real Mexico.
Good to know

The main language in Mexico is Spanish but is slightly different from European (Castilian Spanish). If you speak Spanish you’ll understand the language in Mexico – the main difference is the pronunciation of the z, ci and ce, and some words are unique to Mexico, e.g. a flat is an apartamento in Mexico and a piso in mainland Spain.

Budgeting for your property purchase in Mexico

The overall cost of living in Mexico is much lower than in the UK making it an attractive location to buy property.

Property in Mexico is much cheaper than in the UK:

Type of property Mexican price - £ equivalent UK price - £
Monthly rent 1-bed city apartment 541 1083
Monthly rent 3 bedrooms outside city 683 1360
Price per square metre to buy city centre 1603 5117
Price per square metre to buy outside city 1078 3722



Day-to-day living expenses are also considerably less than in the UK.  Consumer prices excluding rent are 45.8% higher in the UK, eating out is 72.4% more in the UK and the monthly utilities to run a home are an incredible 360% higher in the UK³.


With its cheaper property and cost of living prices, warm climate, fantastic scenery and history, why wouldn’t you want to move to Mexico?

If you’re thinking of living or investing in property in Mexico contact an iad Property Consultant. We can advise and guide you on the buying process, find you a property, manage it for you if you rent it out and share our in-depth knowledge of this wonderful country.

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