These are the questions foreign buyers ask us most often. Answers are general information, not legal advice for your specific case — for that, talk to our real estate lawyers in a free initial consultation.

Can foreigners buy property in Puerto Vallarta?

Yes. Foreigners can own property anywhere in Mexico. Because Puerto Vallarta sits in the restricted coastal zone, non-Mexicans hold residential property through a fideicomiso (a renewable 50-year bank trust) or, for certain uses, through a Mexican corporation. The trust gives you full rights to use, rent, remodel, sell, and pass the property to your heirs.

What is a fideicomiso?

A fideicomiso is a bank trust authorized by the Mexican government. The bank holds legal title as trustee while you, the beneficiary, keep all ownership rights. It lasts 50 years, renews indefinitely, and lets you name substitute beneficiaries so the property passes to your heirs without Mexican probate.

How much are closing costs in Puerto Vallarta?

Closing costs are usually paid by the buyer and typically include the property acquisition tax, Notary Public fees, trust setup and first-year bank fee, permits and registration. As a rule of thumb they total roughly 5 to 8 percent of the purchase price. We quote exact figures for your transaction before you commit.

Do I need my own lawyer if there is already a Notary Public?

Yes. The Notary Public in Mexico is a neutral public official who formalizes the deed and collects taxes; they do not represent your interests. Your own real estate lawyer performs due diligence, negotiates the contract, and protects you throughout the transaction.

Is escrow used in Mexican real estate transactions?

Yes, and we strongly recommend it. A third-party escrow account holds your funds and releases them only when all agreed conditions are met, protecting both buyer and seller.

What taxes do property owners pay in Mexico?

Buyers pay a one-time acquisition tax at closing. Owners pay a small annual property tax called predial. When you sell, capital gains tax (ISR) may apply, and rental income is taxable in Mexico. Good planning at purchase significantly reduces taxes later.

Can my heirs inherit my property in Mexico?

Yes. If you own through a fideicomiso, the substitute beneficiaries you name inherit directly through the trust, usually without a Mexican probate proceeding. We also help owners coordinate their Mexican property with their estate plan at home.

What is ejido land and why is it risky?

Ejido land is communal agricultural land that has not been fully converted to private property. Buying ejido land without completing the legal regularization process is one of the most common and costly mistakes foreigners make. Always verify title before paying anything.

How long does a closing take in Puerto Vallarta?

A typical closing takes 30 to 90 days from signed offer to registered deed, depending on the trust permit, bank, and municipal paperwork.

Have a question that is not answered here? Call +52 322 135 7031 or +1 (213) 400-4820, or email santonelli@gruponar.com — the first consultation is free.