If you’re interested in financing real estate in Mexico as a non-resident or foreigner, you might be getting lost in the mountains of misinformation on the internet.
In this article, we’re going to help you cut through the noise and understand the real options that are available to you.
Of course, if you’re looking for other banking opportunities, you can use our free resources for everything from getting started in international banking to obtaining an international debit card.
Feel free to use the table of contents to jump ahead to the sections most relevant to you.
Table of Contents
- Financing Real Estate: Mexico
- Buying a Home in Mexico
- Can Non-Residents Purchase Properties in Mexico?
- How to Obtain Financing in Mexico
- Frequently Asked Questions
- Do You Want Help Opening Bank Accounts?
Financing Real Estate: Mexico
Financing real estate in Mexico is not an easy process for foreigners or non-residents. Opening bank accounts in Mexico as a non-resident is a challenge, to begin with. So proving creditworthiness with a local bank is also going to be difficult. That said, financing is available for individuals of certain nationalities. Likewise, international financing options are also available, though this depends on your existing banking relationships and the type of accounts you have access to.
In the following sections, we’ll share the specific nationalities that can access local financing in Mexico and answer some of the most common questions we receive on the topic.
Applying for financing requires providing the appropriate proof of documentation and knowing what country of residence means.
Alternatively, if you’re looking for an international transfer app and want to know which countries use transfer apps, such as whether or not Canada has Cash App, you can access our free article linked here to get started.
But, before diving in, if this is your first time visiting GlobalBanks, don’t forget to download your FREE Non-Resident Banking Starter Guide. It’s designed to help non-residents open an international bank account in top banking hubs around the world.
Buying a Home in Mexico
There are a lot of myths floating around about purchasing real estate in Mexico as a foreign non-resident. So, let’s start by clarifying a few important points:
- Foreigners and non-residents can buy Mexican real estate
- Mexico has two “real estate zones” restricted and unrestricted
- Restricted zones include 50 km from the shoreline, 100 km from the borders
- Inside restricted zones, a residential property must be held through bank trusts
- Outside restricted zones, foreigners can hold property directly
Can Non-Residents Purchase Properties in Mexico?
Yes, non-residents can purchase real estate in Mexico. However, as referenced above, Mexico has two real estate zones, restricted and unrestricted.
In short, restricted zones require individuals to purchase property in one of two ways:
- Bank Trust Agreement (Fideicomisos)
- Mexican Corporation
However, if the real estate in question is a residential property for private use, it must be purchased through a Bank Trust Agreement.
How to Obtain Financing in Mexico
If you are looking to purchase real estate in Mexico through local financing, you will need to find a suitable bank that will cater to your citizenship and residency status. Not surprisingly, obtaining financing locally is a challenge. This is especially true if you are not from one of four countries, the United States, the United Kingdom, Spain, or Canada.
Frequently Asked Questions
Below are three of the most common questions that we receive from people looking to obtain real estate financing in Mexico. If you have further questions you would like answered, don’t hesitate to get in touch with us directly.
Can I Finance a Property in Mexico as a Non-Resident?
Yes, foreigners can finance a property in Mexico. However, there are some restrictions. For example, in most cases, foreign financing is only extended to citizens of the United States, the United Kingdom, Spain, and Canada.
How Does Real Estate Financing Work in Mexico?
Real estate financing in Mexico works as it does in any other country. However, there are some caveats as it is not extended to citizens of all countries. Additionally, banks in Mexico can be more tedious to navigate. Likewise, most banks will want to see residency papers, so it can be extremely difficult to obtain financing as a non-resident.
Can I Get a Loan in the US to Buy Property in Mexico?
Standard US mortgages cannot be used to buy international property. Instead, buyers either need to obtain a loan in the local market from a domestic bank or need to obtain financing from an international or private bank that would support acquisitions in the Mexican market.
Do You Want Help Opening Bank Accounts?
If so, you can access GlobalBanks Insider and start the process of applying for an offshore account in a few clicks.
GlobalBanks Insider is a dedicated account opening solution that involves direct support from our team and direct introductions to the banks of your choosing. It gives you instant access to the…
+ Direct support from a team of banking experts
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+ Answers to your most pressing questions and challenges
+ Expert insights on which banks to choose & why
+ Plus FULL access to our entire suite of account opening tools and intelligence!
And “yes!” GlobalBanks Insider is designed to help foreign and non-resident individuals and companies open bank accounts.
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