Is it easy to buy real estate and condos in playa del Carmen?

Purchasing real estate in Playa del Carmen is a well-structured and secure process, but it does involve several legal and administrative steps. Each stage has its own requirements, timelines, and associated costs.

With the right guidance, however, the process becomes clear. Our team will walk you through every step, from making an offer and conducting due diligence to setting up the appropriate ownership structure and closing the transaction, ensuring everything is handled properly and efficiently.
 

How do foreigners buy land in Mexico?

Mexican laws give foreigners the ability to own real estate in Mexico. There is, however, a Restricted Zone that extends 50 km inland from the coastline. Inside the Restricted Zone, there are two alternatives for foreigners who wish to buy real estate.
1. Through a Mexican Trust known as FIDEICOMISO

2. By establishing a Mexican corporation. (used by foreigners residing, working and paying taxes in Mexico)

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What is a Fideicomiso?

A fideicomiso is a real estate trust held on your behalf by a Mexican bank of your choosing (Scotiabank, HSBC, Banamex (Citigroup), Santander etc.). The bank acts a s the Trustee, and you and those you designate are the Beneficiaries of the trust. As the beneficiary, you maintain complete control over it, retaining the use of the property and making all investment decisions. This is not a lease, it is equivalent to a Living Trust in the US. A fideicomiso bestows upon the Beneficiary of the Trust (you) absolute and irrevocable control over the property: to enjoy, lease, improve, mortgage, sell, inherit and will.  
 

What are the costs of establishing a FIDEICOMISO in mexico?

The average cost of opening a mexican trust  in Quintana roo ranges from $2,500 to $3,500 us dollars for the set up, registration & activation of the trust, that is able and capable of undertaking real estate sales and purchases.
 

What are the costs of maintaining a trusts in mexico per year?

Average cost per year ranges from $600 usd to $800 usd. paid to the bank for the trust administration. 

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Is the Fideicomiso an asset of the bank?

No. Your trust is not an asset of the bank; they are merely the stewards of the trust. You and those your designate are the beneficiaries. The trust to your Mexico real estate property is held by the bank for the beneficiary (you) and is not considered an asset of the bank therefore not exposed to any legal action that the bank might find itself in. You may also transfer your rights to a third party or pass it on to named heirs.

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What are the buyer's closing costs?

Closing costs are typically paid by the buyer, it vary depending on the purchase price, and are usually between 7% to 10% of the purchase price. Closing costs, include notary fees, government acquisition + cedular taxes and duties, trustee bank setup fees, government permits, among others.

The seller is responsible for the Capital Gains Tax, any unpaid utilities, and property taxes. Such fees must be paid upon or prior to closing. We will make sure that all items are paid, in order for the buyer to receive a clean title.

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What is the role of the Notary Public in Mexico?

The Public Notary is a government appointed official. Part of his responsibility is to calculate, retain and pay taxes on behalf of both the buyer and the seller at closing. The Notary will issue a deed by means of which the real estate transaction will be formalized, and this document is recorded in the Public Registry.
The notary and the institution where the trust is held will work together to review the information of the contracts and FIDEICOMISO until  is ready to be signed at the Notary's office after all payments are released.

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Annual property taxes.

In Mexico, property owners are responsible for paying an annual property tax known as “predial.” This tax applies to all real estate, including houses, condos, land, and commercial properties.
Tax Rates vary by location and property type. In Quintana Roo, rates tend to be lower than in many locations in the U.S. or Canada, making ownership more affordable from a tax standpoint.

While exact rates can vary and are adjusted periodically, in Playa del Carmen the predial tax rate is generally in the approximate range of:

0.2% to 0.5% of the catastral value annually

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What are the documents that a buyers is expected to provide for the transaction?

· Application forms

· Copy of passport & drivers license

· Copy of a proof of address (not older than 3 months)

· KYC (Know Your Customer) a compliance format filled by buyers, used by financial institutions and real estate professionals to verify the identity of their clients.

· Entry Visa at closing.

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What is the process to buy  a condo?
For presale and developers sellers, first Make an offer including a formality payment in a range on $2,500 to $5,000 usd to reserve the unit you like, when the offer is accepted the unit is taken out of the market and the seller give the buyer a period of time of around 15 days to review documents. 
If the buyer decides to not buy, the money he paid is given back minus some bank fees. If the buyers wants to go through the purchase then a Promissory Agreement (Promesa de compraventa) is signed by both parties, defining the payment forms  and dates as well as the timing for closing dates according to what the bank and Notary say (it can takes from 15 days upt to 1 month).
When the promissory agreement is signed it's also expected to do a first payment of 20-30% of the property's value. The remaining 70% is paid once all documents are setup to signing of final deeds at the Public Notary's office.

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When buying a resale to other owner the process is similar, but payment amounts and dates can be different. The process goes more organic according to what both parties expect, what are their nationalities and what are their personal needs.

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