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🇲🇽 Mexico Property Intelligence
Closing costs, mortgage access, rental yields, neighborhoods & risk assessment — verified for 2026
In this report
Fideicomiso bank trust required in restricted zone (50km coast, 100km border)
Residency Options
No property-linked visa. Mexican mortgages available (Intercam, BBVA) at 8-12% but most foreigners buy cash or use US HELOC. Residente Temporal from ~$2,800/mo income.
Estimated closing costs range from 4% to 7% of the purchase price. Below is a line-by-line breakdown for a MX$5,000,000 property.
| Cost Item | Rate | Estimate |
|---|---|---|
| ISAI (acquisition tax) | 2–5% by state | MX$175,000 |
| Notario público | 1–2% | MX$75,000 |
| Legal fees | 1–2% | MX$75,000 |
| Fideicomiso setup | $500–1,500 | MX$1,000 |
| Total Closing Costs | MX$326,000 | |
| Grand Total (Purchase + Closing) | MX$5,326,000 | |
Annual Property Tax
0.1% – 0.3%
Predial (property tax) is extremely low. Plus fideicomiso annual fee $500-700.
Typical Timeline
8 – 16 weeks
From offer to completion
Loan-to-Value
50% – 65%
Interest Rate
8% – 12%
Down Payment
35% – 50%
Non-resident mortgage terms vary by bank and applicant profile. Rates shown are indicative for 2026. Documentation requirements typically include proof of income, tax returns, and property valuation.
Gross Yield (avg)
6%
Rental Tax Rate
25%
for non-residents
Capital Gains Tax
35%
for non-residents
Rental Income Tax
ISR progressive rates apply. ~25% effective rate on net rental income.
Capital Gains Tax
ISR progressive up to 35%. Primary residence exemption available.
Avg Price per sqm (national)
$1,500 USD
Estimated upfront costs at MX$18,000/month rent in Mexico City
That is roughly 3x monthly rent. 1 month deposit typical. Some landlords ask 2.
3 neighborhoods profiled with rent ranges, buy prices, walkability, safety, and lifestyle fit.
Tree-lined art deco paradise — cafes, parks, expat hub, walkable.
La Condesa is Mexico City's most desirable neighborhood for expats and affluent locals. Built in the 1920s-30s on the former grounds of the Countess of Miravalle's estate, it features stunning art dec...
Studio Rent
MXN 12,000–18,000
1-Bed Rent
MXN 16,000–25,000
2-Bed Rent
MXN 22,000–38,000
Buy (per sqm)
MXN 45,000–70,000
Hipster creative quarter — galleries, co-working, walkable, slightly edgier than Condesa.
Roma Norte is Condesa's grittier, more creative sibling just to the east. The neighborhood centers on Álvaro Obregón boulevard with its grand median walkway, fountain, and porfiriato-era mansions conv...
Studio Rent
MXN 10,000–16,000
1-Bed Rent
MXN 14,000–22,000
2-Bed Rent
MXN 19,000–32,000
Buy (per sqm)
MXN 40,000–60,000
Upscale, museum-rich, safest — CDMX's answer to Manhattan's Upper East Side.
Polanco is Mexico City's most exclusive neighborhood, north of Chapultepec Park. It's home to the world-class Museo Nacional de Antropología, Museo Soumaya (free, Carlos Slim's collection), luxury sho...
Studio Rent
MXN 15,000–25,000
1-Bed Rent
MXN 22,000–40,000
2-Bed Rent
MXN 35,000–65,000
Buy (per sqm)
MXN 60,000–100,000
License Required
Yes — RLAT
Day Limit
No day limit
Enforcement
moderate
Last Regulatory Change
2024
Key Restrictions
Overall Foreign Buyer Risk: Elevated
4 of 5 risk factors flagged for non-resident buyers in Mexico
Foreign ownership is restricted in Mexico. Fideicomiso bank trust required in restricted zone (50km coast, 100km border)
Non-resident rental income taxed at 25%. Capital gains at 35%. ISR progressive rates apply. ~25% effective rate on net rental income.
Closing costs range 4–7% of purchase price. Moderate transaction costs — typical 3–5 year break-even vs renting.
Typical buying/selling timeline: 8–16 weeks. Strong rental demand supports liquidity.
Transactions in MXN. Consider currency hedging for significant investments.
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Property rules, tax rates, and market conditions change. We'll email you when we refresh Mexico City data.
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