Can Americans Buy Property in Mexico? Everything You Need to Know (2026)

Can Americans Buy Property in Mexico?

Absolutely yes. Thousands of Americans own property in Mexico, particularly in Baja California Sur where communities like Los Cabos and La Paz have large, thriving US expat populations.

As BCS’s most established luxury agency with years of experience serving American buyers, Baja Sur Realtors makes the process straightforward and secure.

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3972+ properties available across Cabo San Lucas, La Paz, San José del Cabo, Todos Santos, East Cape, Loreto, Cabo Corridor

The Legal Framework: How It Works

Mexico’s Constitution restricts direct foreign ownership of property within 50km of the coast. Since all of BCS is coastal, American buyers use a fideicomiso — a bank trust that provides:

Full ownership rights (buy, sell, rent, renovate, inherit)
50-year term, renewable indefinitely
Regulated by Mexico’s central banking authority
Legal standing equal to Mexican ownership

Step-by-Step Process for Americans

Find a property — Work with a licensed BCS agent like Baja Sur Realtors
Make an offer — Sign a purchase agreement (Promesa de Compraventa)
Deposit 5–10% into escrow
Choose a trust bank — BBVA, Scotiabank, Santander, etc.
Bank applies for SRE permit (15–30 business days)
Due diligence — Notary performs title search, tax clearance
Close — Sign at notary, wire remaining funds, receive keys

Total timeline: 4–12 weeks from offer to closing.

Tax Considerations for Americans

FBAR reporting: If you have Mexican bank accounts over $10K, file FinCEN Form 114
Form 8938: Report foreign assets over $50K (single) or $100K (married)
Rental income: Report on US return; claim foreign tax credit for Mexican taxes paid
Capital gains: US taxes capital gains on worldwide income, but Mexico taxes at closing; foreign tax credit applies

Frequently Asked Questions

Can Americans buy property in Mexico?

Yes. US citizens can purchase property anywhere in Mexico. For coastal and border properties, a fideicomiso (bank trust) is used, which grants full ownership rights including the right to sell, rent, and inherit.

Do I need Mexican citizenship to buy property?

No. You can buy property in Mexico as a US citizen with just a valid passport. No visa or residency is required to own property, though you may want residency for tax benefits if living there.

Can I use my US bank account to buy property in Mexico?

Yes. International wire transfers from US banks are the standard method. Some buyers also use escrow services based in the US for added security.

Will I owe US taxes on property in Mexico?

You must report foreign real estate on your US tax return. Rental income is taxable in both Mexico and the US, but foreign tax credits prevent double taxation. Consult a cross-border tax specialist.

Can I get a US mortgage for property in Mexico?

Standard US mortgages don’t apply to Mexican property. However, cross-border lenders like MXNOW offer financing. Many buyers use a HELOC on their US property or pay cash.

What happens to my Mexican property if I die?

Your beneficiaries (named in the fideicomiso) inherit the property. If they are also foreign, they continue the trust. Having a Mexican will is recommended for smoother transfer.

Current Properties Available

Cabo San Lucas (694 listings) · La Paz (924 listings) · San José del Cabo (679 listings) · Todos Santos (102 listings) · East Cape (529 listings) · Loreto (127 listings) · Cabo Corridor (917 listings)

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With years of experience helping American buyers in Baja California Sur, Baja Sur Realtors provides expert guidance from first tour to closing day.

Updated March 2026.

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Baja Sur Realtors — Luxury Real Estate in Baja California Sur

📍 Plaza Cerralvo, Local 6, Paseo Alvaro Obregón 1665, La Paz, BCS 23000, Mexico

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Can Americans Buy Property in Mexico? Everything You Need to Know (2026)