Many visitors start browsing listings after a few days in Puerto Vallarta. Buying here is routine for foreigners, but the structure is different from the US or Canada. Here's how it works.
The restricted zone
Mexico's Constitution (Article 27) sets a restricted zone: 100 km along the borders and 50 km along the coasts. Inside it, foreigners can't hold title to land directly. Puerto Vallarta is a coastal city, so it's inside the zone.
How a fideicomiso works
The Foreign Investment Law creates the solution: a fideicomiso, a trust over the property.
- A Mexican bank is the trustee. It acquires title, with a permit from the Ministry of Foreign Affairs (SRE).
- You are the beneficiary. You have the right to use and benefit from the property: live in it, rent it out, remodel it, sell your rights, or name substitute beneficiaries, such as your heirs.
- It lasts up to 50 years (Article 13) and can be extended at your request.
The bank charges a fee to set up the trust and an annual fee to keep it. Ask for both in writing when you compare banks.
The notario público
In Mexico, a sale is formalized by a notario público, a specially appointed lawyer who prepares and records the public deed (escritura). Before you commit, ask the notario for a written estimate of your closing costs. Expect it to include acquisition tax, notary fees, the trust setup and the SRE permit.
Before you sign
- Hire your own lawyer, separate from the seller's agent.
- Ask agents whether they belong to AMPI, Mexico's association of real-estate professionals, and ask for references.
- Have the title and liens checked, and make sure any condo association fees are paid up.
- Get every cost in writing: closing costs, the bank's annual trust fee, condo fees and property tax (predial).
See what's for sale
Vallarta Pro tracks hundreds of active sale and rental listings across Puerto Vallarta and Riviera Nayarit, updated several times a day.
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