ONIX LIVING | REAL ESTATE INVESTMENT
Are you a foreigner looking to buy in Cancun or Tulum? Discover how the bank trust works, how much it costs, and what taxes you will pay
The Riviera Maya has become one of the favorite destinations for international buyers seeking a second home, a vacation house, or an investment with high potential for capital gains. And the answer to the most common question is yes: foreigners can buy property in Mexico.
But before taking the plunge, it is worth knowing the rules of the game. Cancun, Tulum, and the entire Mexican Caribbean coast are within the so-called Restricted Zone, where purchases are made through a bank trust or a Mexican corporation. Choosing the right structure, knowing the costs, and understanding which taxes apply in Mexico and your country of origin can save you time, money, and surprises.
That is why we have prepared this visual guide with everything you need to know before buying.
Do you have questions about your specific case? At Onix Living, we accompany you throughout the entire process, from choosing your property to the closing.
Sources
¹ Political Constitution of the United Mexican States, Article 27, Section I (Restricted Zone: 100 km from borders and 50 km from coasts). Supreme Court of Justice of the Nation. https://www.supremacorte.gob.mx/sites/default/files/cpeum/documento/2017-03/CPEUM-027.pdf
² Foreign Investment Law, Title Two, Chapter II: Acquisition of real estate in the Restricted Zone and trusts. Chamber of Deputies. https://www.diputados.gob.mx/LeyesBiblio/pdf/LIE.pdf
³ Permit to establish a trust in the Restricted Zone. Ministry of Foreign Affairs (SRE). https://sre.gob.mx/permiso-para-constituir-un-fideicomiso-en-zona-restringida
⁴ Tax treaties to avoid double taxation. Tax Administration Service (SAT). https://www.sat.gob.mx/normatividad/98105/tratados-en-materia-fiscal-y-cuestiones-relacionadastratados-en-materia-fiscal-y-cuestiones-relacionadas
⁵ Foreign Tax Credit. Internal Revenue Service (IRS), USA. https://www.irs.gov/individuals/international-taxpayers/foreign-tax-credit
⁶ Report of Foreign Bank and Financial Accounts (FBAR). Financial Crimes Enforcement Network (FinCEN), USA. https://www.fincen.gov/report-foreign-bank-and-financial-accounts
⁷ Comparison of Form 8938 (FATCA) and FBAR requirements. Internal Revenue Service (IRS), USA. https://www.irs.gov/businesses/comparison-of-form-8938-and-fbar-requirements
⁸ Foreign Income Verification Statement (Form T1135). Canada Revenue Agency (CRA). https://www.canada.ca/en/revenue-agency/services/tax/international-non-residents/information-been-moved/foreign-reporting/foreign-income-verification-statement.html
Bank trust costs ($2,400 USD for setup and $500 USD annually) and closing costs (5–7%) are approximate estimates; they vary depending on the trustee bank, the property value, and the municipality.
