How to Buy Property in Puerto Vallarta as a Foreigner

Can Foreigners Really Own Property in Mexico?

Yes — absolutely. Mexico’s constitution does allow foreigners to own property, with one important nuance: in what are known as restricted zones (within 50 km of the coast or 100 km of a border), foreign buyers cannot hold the deed directly in their own name. Instead, they purchase through a legal mechanism called a Fideicomiso — a bank trust — or through a Mexican corporation if the property is intended for commercial use.

Puerto Vallarta sits within the restricted zone, which means most buyers here will use a Fideicomiso. Don’t let that word intimidate you — it’s a well-established, government-regulated process that thousands of foreign buyers use every year, and it grants you full ownership rights.

What is a Fideicomiso? It’s a trust held by a Mexican bank, where the bank acts as the trustee and you — the foreign buyer — are the beneficiary. You retain all rights to use, rent, sell, or modify the property. The initial term is 50 years, fully renewable.

Step-by-Step: The Buying Process in Puerto Vallarta

Buying real estate in Mexico follows a process that’s different from what you may be used to in the U.S. or Canada. Here’s a clear breakdown of how it works:

1. Find Your Property: Work with a local, trusted real estate agent who knows the market — zones, pricing trends, and developer reputation all matter enormously here.
2. Make an Offer: Once you find the right property, your agent will help you submit a formal offer. Negotiation is common, especially in the luxury segment.
3. Promissory Agreement: A Contrato de Promesa de Compraventa is signed by both parties. A deposit (typically 10%) is paid to hold the property.
4. Due Diligence: Your notary (Notario Público) verifies title, checks for liens or encumbrances, and confirms the property’s legal standing.
5. Set Up the Fideicomiso: If required, your chosen bank applies for a permit from the Ministry of Foreign Affairs to set up the trust. This typically takes 2–4 weeks.
6. Closing Day: The deed (Escritura) is signed before a Notario Público. Funds are transferred, keys are exchanged, and the property is officially yours.

What Are the Costs Beyond the Sale Price?

One of the most common surprises for first-time buyers in Mexico is the closing costs. As a general guideline, expect to add approximately 5–8% of the purchase price in additional costs, which typically include:

• Acquisition tax (ISAI): Varies by state — in Jalisco, it’s around 2% of the property value.
• Notary fees: Usually 1–2% of the sale price.
• Fideicomiso setup fee: Typically $1,000–$1,500 USD, plus an annual fee of around $500–$700 USD.
• Appraisal and title search fees.
• Real estate agent commission: In Mexico, commission is typically paid by the seller, not the buyer.

Do You Need to Be a Resident to Buy?

No. You do not need to be a Mexican resident or citizen to purchase property in Puerto Vallarta. A valid passport is the primary document required. However, you will need a Mexican tax ID number — called an RFC (Registro Federal de Contribuyentes) — for the closing process. Your notary or real estate agent can help you obtain this.

Financing: Can You Get a Mortgage?

Most foreign buyers in Puerto Vallarta purchase with cash, but financing options do exist. Some Mexican banks offer mortgages to foreigners, though the requirements are stricter and interest rates tend to be higher than in the U.S. or Canada. Pre-construction developments often offer their own flexible payment plans, making them an attractive option for buyers who prefer not to pay the full amount upfront.

Choosing the Right Zone

• Zona Romántica (Old Town): Cobblestone streets, beachfront, vibrant dining, and strong short-term rental demand.
• Marina Vallarta: Upscale, family-friendly, golf course, and marina access.
• Nuevo Vallarta: Resort-style living, pristine beaches, gated communities.
• Punta de Mita: Exclusive enclave of luxury villas and boutique developments.
• Bucerias & La Cruz: Charming beach towns with growing expat community and accessible price points.

Why Work With a Local Expert?

At Green Realty Mexico, we’ve been helping buyers from the U.S., Canada, and beyond find their perfect place in Puerto Vallarta and the Riviera Nayarit. We know this market inside and out — the neighborhoods, the developers, the market cycles — and we’re here to make your buying experience as smooth and enjoyable as the destination itself.

Talk to one of our agents today — in English, at your pace, with no pressure.