Buying property in Mexico with a dual citizenship: what you need to know

Mexico is a top destination for real estate investment, whether you’re looking for a vacation home, a rental property, or a place to retire. Buying property in Mexico with dual citizenship offers several advantages, particularly if you hold both U.S. and Mexican citizenship.

With the ability to purchase real estate without restrictions, access to financial benefits, and simplified legal processes, dual citizens can enjoy a seamless property acquisition experience.

If you’re considering buying property in Mexico and have dual citizenship, here’s everything you need to know to make an informed investment.

Can You Buy Property in Mexico with Dual Citizenship?

Yes! Having dual citizenship in the U.S. and Mexico gives you the same property ownership rights as any Mexican citizen. This means you can buy property anywhere in the country, including restricted zones such as coastal areas and land near international borders, without the need for a fideicomiso (bank trust) or a Mexican corporation.

For foreign buyers, Mexico has specific restrictions when purchasing property within 50 kilometers (31 miles) of the coast or 100 kilometers (62 miles) of the border. Typically, non-Mexican buyers must use a fideicomiso, a trust arrangement managed by a Mexican bank. However, as a dual citizen, you can purchase land directly in your name without going through this process.

This makes buying property in Mexico with dual citizenship a much simpler and more cost-effective option compared to purchasing as a foreigner.

What Do You Need to Buy a Property in Mexico with Dual Citizenship?

Even though dual citizens enjoy fewer legal hurdles, you still need to complete the standard requirements to purchase property in Mexico. Here’s what you’ll need:

Valid Identification and Legal Documentation

• Mexican passport or INE (Mexican voter ID)

• CURP (Clave Única de Registro de Población) – Mexico’s version of a Social Security number

• RFC (Registro Federal de Contribuyentes) – Required if you plan to rent the property or conduct business

Financial and Legal Requirements

• Proof of Funds: Some sellers may require bank statements or financial documentation.

• Notary Public (Notario Público): In Mexico, real estate transactions must be completed through a notary public, who ensures that the property title is legally transferred.

• Purchase Agreement and Due Diligence: You should work with a real estate attorney to conduct title searches, check for liens, and verify ownership records.

Taxes and Fees

• Acquisition Tax (ISAI): Ranges between 2% and 4% of the property value.

• Property Taxes (Predial): Relatively low in Mexico compared to the U.S.

• Notary Fees and Closing Costs: Typically 5%–7% of the purchase price.

By having Mexican citizenship, you can avoid certain taxes and legal limitations that foreigners face, making the purchase process much smoother.

What Are the Main Advantages of Buying a Property in Mexico Having a Dual Citizenship?

There are multiple benefits of buying property in Mexico with dual citizenship, from legal advantages to financial incentives. Here are the top reasons why dual citizens have an edge when purchasing real estate in Mexico:

Direct Property Ownership in Restricted Zones

1. As a dual citizen, you can buy property in your name in any part of Mexico, including beach destinations like Tulum, Playa del Carmen, and Cancún.
2. Foreign buyers must use a fideicomiso, which involves extra costs and legal steps.

Access to Local Financing

1. Foreigners often face restrictions or higher interest rates when applying for a mortgage in Mexico.
2. As a Mexican citizen, you qualify for better mortgage options and lower down payments from Mexican banks.

Lower Taxes and Exemptions

1. If you declare your property as a primary residence, you may qualify for capital gains tax exemptions when selling.
2. You also avoid the annual fideicomiso fees that foreign buyers must pay (around $500–$700 USD per year).

Easier Rental Income Management

1. Mexican citizens pay lower taxes on rental income than foreigners.
2. You can set up a Mexican bank account to collect rent more efficiently.
3. Property management and short-term rental licenses are easier to obtain as a Mexican citizen.

Simplified Inheritance and Estate Planning

1. Property owned directly in your name follows Mexican inheritance laws, making it easier to pass down to your heirs.
2. Foreigners with a fideicomiso must go through extra legal steps to transfer ownership.

Residency and Long-Term Stay Benefits

1. No need for temporary or permanent residency permits—you can live in Mexico year-round without immigration restrictions.
2. Easier access to healthcare, retirement benefits, and social security programs in Mexico.

With these advantages, buying property in Mexico with dual citizenship is one of the best ways to invest in real estate, whether for personal use, rental income, or long-term appreciation.

Ready to Get a Property in Mexico?

If you have dual citizenship and are considering buying property in Mexico, now is a great time to explore the market. The Riviera Maya, including Tulum and Playa del Carmen, continues to be one of the fastest-growing real estate markets in Mexico, offering excellent investment opportunities.

At Jaguar Tulum Real Estate, we specialize in helping buyers find the perfect property in Tulum, Playa del Carmen, and the surrounding Riviera Maya. Whether you’re looking for a beachfront home, a rental investment, or a place to retire, our team of experts is ready to assist you through every step of the process.

Contact us today for a FREE consultation and start your journey to owning property in Mexico!