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Foreigners cannot hold direct title near borders and coasts, and need a permit elsewhere

Last verified: 2026-10-27 · Status: Stable

Abroad, foreigners can usually buy land on the same terms as locals; in Mexico they may never hold direct title to land within 100 km of a border or 50 km of a coast. In that restricted zone, a Mexican company with foreign shareholders may own property for non residential use with a notice to the Foreign Ministry (SRE), and residential property is held through a bank trust of up to 50 years, renewable. Outside the zone, a foreign buyer must first sign an agreement before SRE not to invoke its own government's protection, on pain of losing the property, and obtain a permit; 2026 federal fees run from MXN 595 to MXN 21,650.

USD conversions use MXN 18.6638 per US dollar, the US Federal Reserve H.10 noon buying rate in New York for 23 October 2026 (FRED series DEXMXUS), the latest observation available when this page was verified. Mexican law uses the Banxico FIX rate published in the DOF for foreign currency amounts, which differs slightly. Conversions are for orientation only.

Key facts

Restricted zone width along borders (no direct foreign ownership)	100 kmConstitution art. 27, section I, as of 2026-10-27 · in force
Restricted zone width along coasts (no direct foreign ownership)	50 kmConstitution art. 27, section I, as of 2026-10-27 · in force
Maximum term of a restricted zone trust, extendable	50 yearsLIE art. 13, as of 2026-10-27 · in force
SRE fee for a restricted zone trust permit, 2026 (rounded amount payable)	21650 MXNLFD art. 25, section V a); RMF 2026 Annex 4, as of 2026-10-27 · in force
Deadline for a Mexican company with foreign shareholders to notify SRE of a non residential acquisition	60 business daysLIE art. 10, section I, as of 2026-10-27 · in force
SRE fee for a foreigner's agreement to buy property outside the restricted zone, 2026	5250 MXNLFD art. 25, section XV; RMF 2026 Annex 4, as of 2026-10-27 · in force

The rule

1. Only Mexicans and Mexican companies have the right to acquire ownership of land and water. The State may grant the same right to foreigners if they agree before the Foreign Ministry to consider themselves Mexican nationals regarding that property and not to invoke the protection of their governments over it, under penalty of losing the property to the Nation if they break the agreement. In a strip of 100 km along the borders and 50 km along the coasts, foreigners may by no means acquire direct ownership of land and water.
Cost to do it: No fee for the rule itself; see the SRE fees below.
Example: A foreign individual cannot be the registered owner of a beach house in Puerto Vallarta, which lies within 50 km of the coast. / No US dollar effect.Constitución Política de los Estados Unidos Mexicanos, DOF 5 February 1917 (consolidated text, last reform DOF 7 October 2026), Art. 27, section I, 1917-02-05 official text · verified 2026-10-27

2. Mexican companies whose bylaws include the foreigners agreement may own real estate in the restricted zone for non residential activities, giving notice to SRE within 60 business days after the acquisition. For residential use in the zone, they acquire rights through the trust regime below.
Cost to do it: 2026 SRE fee of MXN 1,475 per notice, or MXN 11,330 if filed late (LFD art. 25, sections X and XI d).
Example: A Mexican subsidiary of a US group buys a warehouse in Nuevo Laredo, within 100 km of the border. It takes title in its own name and files the SRE notice (MXN 1,475) within 60 business days. / About USD 79, or USD 607 if late.Ley de Inversión Extranjera (LIE), DOF 27 December 1993 (consolidated text, last reform DOF 27 May 2024), Art. 10, 1996-12-24 official text · verified 2026-10-27 · changed: The DOF 24 December 1996 reform set the 60 business day notice.

3. A bank needs an SRE permit to acquire, as trustee, rights over property in the restricted zone when the trust lets foreigners, or Mexican companies with foreign shareholders using it for residential purposes, use and enjoy the property, including its income, without holding real rights. The trust lasts up to 50 years and may be extended at the interested party's request. SRE must rule on permit applications within five business days at its central office or 30 business days at state offices; otherwise the application is deemed approved.
Cost to do it: 2026 SRE fees: MXN 595 to examine the application plus MXN 21,650 for the trust permit; bank set up and annual trustee fees and notary costs are additional and vary.
Example: A Canadian couple buying a condo in Tulum through a bank trust pays SRE MXN 595 plus MXN 21,650 = MXN 22,245 before bank and notary costs. / About USD 1,192 of federal fees.Ley de Inversión Extranjera (LIE), DOF 27 December 1993 (consolidated text, last reform DOF 27 May 2024), Arts. 11, 12, 13 and 14, 1993-12-27 official text · verified 2026-10-27

4. Foreigners who want to acquire real estate outside the restricted zone must first file with SRE a written agreement on the terms of Constitution art. 27, section I, and obtain the permit. If the property is in a municipality entirely outside the zone, the permit is deemed granted unless SRE publishes a refusal in the DOF within five business days of the application; if the municipality is partly inside the zone, SRE rules within 30 business days.
Cost to do it: 2026 SRE fee of MXN 5,250 for receiving, studying and approving the agreement (LFD art. 25, section XV), plus notary costs.
Example: A German investor buying a house in San Miguel de Allende, a municipality outside the zone, files the agreement with SRE and pays MXN 5,250 before signing the deed. / About USD 281.Ley de Inversión Extranjera (LIE), DOF 27 December 1993 (consolidated text, last reform DOF 27 May 2024), Art. 10 A, 1996-12-24 official text · verified 2026-10-27 · changed: LFD art. 25, section XV, added by the DOF 14 November 2022 reform, created the specific fee for this agreement.

5. Federal fees for these procedures are set by the Federal Duties Law and updated each year; the 2026 amounts payable (rounded) are published in Annex 4 of the 2026 Miscellaneous Tax Resolution.
Cost to do it: See the table on this page.
Example: A trust permit plus examination fee costs MXN 22,245 in 2026. / About USD 1,192.Ley Federal de Derechos (LFD), DOF 31 December 1981, with 2026 amounts from RMF 2026 Annex 4, DOF 28 December 2025, LFD art. 25, sections III, V, X, XI and XV, 2025-12-28 official text · verified 2026-10-27

Procedure	LFD art. 25	MXN	USD
Examination of each permit application	III	595	32
Restricted zone bank trust permit	V a)	21,650	1,160
Modification of a trust permit	V b)	9,740	522
Late request to extend a trust	V c)	10,615	569
Notice of non residential acquisition by a Mexican company with foreign shareholders	X	1,475	79
Late filing of that notice	XI d)	11,330	607
Foreigner's agreement to buy property outside the restricted zone	XV	5,250	281

2026 SRE fees for foreign ownership procedures (LFD art. 25, rounded amounts payable from RMF 2026 Annex 4). USD at MXN 18.6638.

Buyer and use	Inside restricted zone	Outside restricted zone
Foreign individual or foreign company, any use	Bank trust with SRE permit (up to 50 years, renewable)	Direct title after SRE agreement and permit
Mexican company with foreign shareholders, non residential	Direct title, SRE notice within 60 business days	Direct title
Mexican company with foreign shareholders, residential	Bank trust with SRE permit	Direct title

Which route fits. Sources: Constitution art. 27 I; LIE arts. 10 to 14.

Worked example

A US hotel group buys a beachfront plot in Baja California Sur through its Mexican subsidiary to build a hotel.
Hotel operation is non residential, so the subsidiary takes direct title and notifies SRE within 60 business days (MXN 1,475).
Senior staff who want to buy their own homes nearby must instead use bank trusts, each costing MXN 22,245 in SRE fees (USD 1,192) plus bank and notary fees.

Step by step

1. Check whether the municipality is fully, partly or not inside the restricted zone.
2. Choose the route: company title with SRE notice, bank trust with SRE permit, or foreigner's agreement and permit outside the zone.
3. File with SRE and pay the LFD art. 25 fees before signing the deed.
4. Close before a notary, paying by bank transfer (see the cash ban page).
5. Diary the SRE notice deadline (60 business days) and, for trusts, the 50 year term.

Common traps

Putting restricted zone property in a foreign individual's name is barred by the Constitution, whatever the deed says.
Using company owned restricted zone property as housing requires a trust, not direct title.
Breaking the foreigners agreement by seeking diplomatic protection can lead to loss of the property to the Nation.
Ejido and communal land and the federal maritime zone along beaches have separate rules covered on the real estate pages.

Sources

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