How to Buy Land in Mexico as a Foreigner + How Dogpay Helps
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What You Need to Know Before Buying Land in Mexico
Can Foreigners Buy Land?Foreigners (e.g. Americans) can buy land in Mexico, but there are restrictions for areas close to the coast (50 km) or the border (100 km). In those “restricted zones,” ownership is handled via a fideicomiso — a bank trust where a Mexican bank holds title, but you own beneficiary rights.
Legal & Land Title Issues
Must check whether the land is ejido land (communal rural land). Ejido land often involves special rules and is harder or impossible for foreigners to purchase outright.
Must do due diligence: title search, land appraisal, verifying utilities access (water, electricity), boundary checks, environmental regulations if building.
Taxes, Fees, and Costs
You’ll pay a fideicomiso setup fee (if needed) plus an annual maintenance fee (~ USD 1,000-1,500 for restricted-zone land)
Annual property tax (predial) typically around 0.1 % to 1 % of property’s assessed value depending on state/ municipality.
Land purchases often require full payment (or large down payments) up front. Mortgages for raw land are less common.
If in restricted zones and using a fideicomiso, payments may go via bank trust.
Currency conversion & international money transfers can eat into cost via bank markups / FX spread.
Step-by-Step Process
Step
What to Do
1. Identify land plot & location
Decide desired area (coastal/inland), check whether restricted, access to infrastructure.
2. Verify legal status & title
Ensure it’s not ejido or otherwise encumbered; get legal advice / solicitor; do appraisal.
3. If restricted zone, set up fideicomiso
Work with a Mexican bank to create the trust; review terms & duration (often 50 years with renewal).
4. Negotiate purchase price & contract
Use local notary / lawyer; clear conditions.
5. Pay required fees & taxes
Notary, registration, trust fees (if applicable), taxes, etc.
6. Register ownership/title
Go through the public registry (Registro Público de la Propiedad), file escritura (deed).
How Dogpay Helps in the Land-Buying Process
Scenario
Common Payment Friction
How Dogpay Adds Value
Large cross-border transfer for purchase price
Big sums; bank transfers from abroad often incur high fees, poor FX rate, delays; sometimes needing intermediary banks.
Dogpay supports large multi-currency transfers with clearer FX/fee transparency; you can see costs before sending; possibly lock favorable rates; minimize hidden charges.
Fideicomiso bank trust payments often in MXN and possibly in USD; foreign payment can incur extra conversion / banking fees; tracking recurring payments can be a headache.
With Dogpay, you can schedule or budget for recurring trust fees; track them clearly; avoid surprise bank charges; ensure timely payments to avoid lapses.
Legal / notary / advisory service payments
Lawyers or notaries may charge in local currency or dollar, sometimes with foreign correspondence; invoices may require foreign transfers or courier; receipts may be needed for tax or proof.
Dogpay allows for cross-currency payments with transparency; helps you preserve receipts; manage multiple small vendor payments; reduce currency conversion losses.
Managing costs of permits, utilities and building if you intend to build
After purchase, building permits, connection to utilities, infrastructure costs, environmental permits may require payments to local authorities or contractors; some costs overseas or from foreign vendors.
