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How to Buy Property in Mexico 2024 - Arpr México

Updated: Jan 8


Once you have chosen the property that you like and in which you are going to invest, you need to know this information when buying properties in Mexico. Keep in mind that the operations when investing in properties are in Mexican pesos, and are made via bank transfers. You are always hesitant to make any cash operation when making a major operation like this.

1.Down Payment of the Property

The down payment is the amount that you will have to pay in advance according to the type of property and the forms of payment; Usually in Mexico a base of 20 and 30% of the total value of the property is established, but it varies depending on the type of mortgage you get or if the property is going to be settled in cash. In any case, it is not bad that you start thinking about this percentage. The down payment also means the first step of the whole process, and is also seen, in most cases, as the guarantee to be able to inhabit the property.

To get a Mortgage loan, it is prudent to have a clean credit history and without debts. This will set the standard to define the financial percentage of credit that the institution will grant. For this reason, we recommend that you consult the credit bureau (free service), which gives visibility to the status of your history in this matter, to find out if it is appropriate to settle the delinquent balances, as well as improve your background.

2.Extra payments to consider

There are some payments to keep in mind before taking the big step. For this reason, we suggest that you set aside 10 to 20% for additional ones such as the property, notarial procedures and any structural or superficial improvement that you wish to make in the selected space. The property tax is a tariff that is applied on any property or real estate possession, that is to say, to houses, apartments, offices, etc. It must be paid by all taxpayers who own one or more of these assets. It must be paid annually; generally at the beginning of the year. The total percentage of the Property Acquisition Tax changes depending on the year in this case 2024 and the place where you are, so the rate that the taxpayer has to pay depends on the place and the value of the property; it is paid at the time of the deed and the person in charge is the one who acquires the property. In summary, we can say that the notarial procedures include the deed (among which are the taxes of the sale of the property), the rights derived from the operation carried out and the notarial fees, these paid 100% by whoever buys.


With the aforementioned criteria on the table: with the amount that you are going to assign from your salary to invest in a property in Mexico or department, as well as the additional expenses when buying a property in Mexico. In Mexico you can choose these types of Properties:

  • Houses

  • Departments

  • Buildings

  • local

  • Pre-sale properties

  • Real estate developments

  • New Properties

  • Colonial houses

  • Residential lots Land

This whole process is the result of questioning the type of property, if one wants a new or used property, be it a house or an apartment, or if he prefers to buy it under the pre-sale model, whether it is an Architectural project or a property in a real estate development.


If you are a foreigner and want to invest in Real Estate; First of all, you must bear in mind that foreigners can only acquire properties located outside border areas. You will have to request a permit for the acquisition of real estate from the Ministry of Foreign Relations (SRE) of the Mexican Government. The most common is that they grant it to you. And the process does not usually take long.

Restricted areas

Territories located less than 100 km from a land border or less than 50 km from a beach receive this qualification. Foreigners cannot acquire this type of territory. If you will be able to acquire real estate in said restricted territories if you do it through a trust institution or a trust. In these cases, said institution would be the owner of the land or property and you could request rights over them for a term of 50 years with an opportunity to renew that term.

Taxes when Buying Real Estate:

When investing in a property, you have to pay the Property Acquisition Tax (ISAI) or Domain Transfer Tax plus the notarial expenses when making the change of domain. The ISAI is one of the taxes collected by the government each state. Its rate, which is generally 2%, is calculated on the highest value of the purchase transaction; although the amount varies according to the state.

Whatever position you are in (buyer or seller), you must comply with documentation such as deeds, lien certificate and contract, to name a few. In case of any doubt, you can ask a notary or a real estate agency for information so that they can guide you properly and that your process does not have further delays.

What are the deed expenses?

Normally they are borne by the buyer and son: property acquisition tax (it is local and, in some places, it is called a property transfer tax); public record rights; rights for obtaining certificates or certificates from various agencies (stories such as the certificate of freedom from encumbrances, certificates of non-payment of contributions, certificates of land use, cadastral plans, etc.); expenditures (payment to managers, transfers, appraisals, travel expenses, etc.); finally, the notary's fees and the corresponding IVA.

Buying a house in Mexico carries the following costs derived from administrative procedures:

  • Property acquisition tax: 0.18% to 4.65% of the price of the property you buy

  • Notary fees: 0.075% to 1.125%

  • Registration rate: 0.02% to 1.82%

  • Real estate title insurance: 0.5% to 0.7%

  • Other taxes: 0.5% to 1.00%

This will cost you between 1.13% and 4.69% of the value of your new home. In Mexico, the seller is in charge of paying the real estate agency fee.

If you always dreamed of owning a property in the safest city in Mexico and the Mayan culture, don't miss the opportunity. As you have seen, the procedures are not too complicated and it is very feasible to invest in Merida, the safest city in Mexico. Invest in a house in Mérida, in Yucatán many foreigners reside from the United States, Spain and France.

Types of Properties and tips when acquiring a property in Mexico:


Pre-sale houses and apartments have the advantage that the buyer acquires a property prior to or during the construction process and while paying for it at an initial price (Down Payment) While preparing to inhabit it at the moment the developer hands over the keys. This means that the price is taken as an opportunity, but we must not forget that it has a pair of Achilles heels: guaranteeing delivery times and not being able to be inhabited immediately.


Buying a new house or apartment has the quality that no one has touched it more than its builders. This brings benefits from the perspective that they generally do not present damage, but the drawback is that many of these do not come fully equipped with all their components: kitchen, closets, floors, among others. That is why we suggest that you consider each aspect in your decision.


This type of housing is self-explanatory. It has the advantage that it is easier to negotiate the price taking into account the state of the property. Damages such as cracks, paint, locks or the last waterproofing are a good reference to counteract the conditions of the sale, as they are additional expenses that you will have to do to live in an optimal space.

House or Apartment?

If you are one of the people who prefer to have total privacy, it is convenient for you to look for a house, because it has the advantage of not sharing the cost of maintenance, nor the common areas, of course if the house is not in a housing complex, (Private Residential) In change the vast majority of developments in apartments are vertical, and require constant maintenance, elevators, lobby, amenities such as pool or social area of ​​the complex which becomes an additional expense in maintenance when living in an apartment is involved . As well as these differences, we find many others to consider to choose if I want a two-story house that requires a complete family with a couple of children or a small apartment for a single or couple buying their first home. The sky is the limit!


Select the house or property in Mexico that goes according to your daily needs, that has the size and number of sufficient rooms and, if possible, that is close to your place of work.


If you decided to buy a used home, ask an architect to help verify that the house is fit for habitation. In the end you could pay a higher cost for not taking this point into account.


If you are going to invest in a property in Mexico, look for you to have the communication channels or services that you require, such as: education, health, shops, security, transportation, recreation and supply. Avoid high risk areas! What does it mean, that the property is not in cities with high risk of natural disasters, under power lines, fuel tanks, underground pipelines, near ravines or areas at risk of flooding. Invest in safe areas and cities to protect your heritage. Invest in the safest city in Mexico, Mérida Yucatán!


The city of Mérida is located in the state of Yucatán, southeast of Mexico, the city is located in the northwest of Yucatán and is the capital of the state. Mérida has about 2,600,000 inhabitants (2023) its metropolitan area, it is also the most populated city on the peninsula and one of the fastest growing cities in all of Mexico. A great advantage is the cost of investing in a home in Mérida, Yucatán is lower compared to other cities, in addition, thanks to growth and future investment, we know that the return on investment is increasing, therefore many locals and foreigners are investing in homes in Mérida for its safety and quality of life and these results even more its value thanks to the great demand for these properties.


That a property has deeds is the only way in which you will have the legal certainty of the property, including banks to contract loans, verify the deeds before a notary public, or a lawyer to help you verify the legal procedures.


Define how much of what you have saved you can use, since banks or housing support institutions only lend on average up to 80% of the property's value, so you must have that 20% previously to give the down payment, and an additional 5% to cover initial costs (appraisal, insurance, deeds, notary, opening of credit, among others such as moving etc.)


As a general rule, the seller must have current payments for services, such as: property, electricity, water and gas. You don't want to absorb one more debt!


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