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Leases: 10 and 20 year maximum terms, one year minimum for housing, rent in pesos, tenant preference to buy, termination notice and registration

Last verified: 2026-10-26 · Status: Stable

Leases must be in writing; housing leases may last up to 10 years and commercial or industrial leases up to 20, and housing leases run at least one year for both sides unless agreed otherwise. Housing rent must be stated in Mexican pesos, the lease survives a sale of the property, and housing tenants have a right to be preferred if the owner sells, with 15 days to accept. Leases without a fixed term end on 15 days written notice for urban property and one year for rural property, and leases over 6 years must be registered to bind third parties.

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. Legal conversions in Mexico use the Banxico FIX, which differs slightly. Conversions are for orientation only.

Key facts

Maximum lease term for housing	10 yearsCódigo Civil Federal art. 2398, as of 2026-10-26 · in force
Maximum lease term for commercial or industrial property	20 yearsCódigo Civil Federal art. 2398, as of 2026-10-26 · in force
Minimum term of a housing lease, unless agreed otherwise	1 yearsCódigo Civil Federal art. 2448 C, as of 2026-10-26 · in force
Days a housing tenant has to accept the owner's sale offer	15 daysCódigo Civil Federal art. 2448 J, as of 2026-10-26 · in force
Notice to end an urban lease without fixed term	15 daysCódigo Civil Federal art. 2478, as of 2026-10-26 · in force
Leases longer than this must be registered to bind third parties	6 yearsCódigo Civil Federal art. 3042, as of 2026-10-26 · in force

The rule

1. Terms and form. A lease grants temporary use of a thing for a fixed price. It may not exceed 10 years for property used as housing or 20 years for property used for commerce or industry. Leases must be in writing, and the lack of writing is attributed to the landlord. Leases are not terminated by the death of either party, and if the property is sold the lease continues on its terms.
Cost to do it: No federal fee; registration of long leases is charged under state fee laws.
Example: A 15 year lease of a retail unit is valid; a 15 year housing lease exceeds the 10 year maximum.Código Civil Federal, DOF 26 May 1928, arts. 2398 (second paragraph reformed DOF 21 July 1993), 2406, 2408 and 2409, CCF arts. 2398, 2406, 2408 and 2409, 1993-07-21 official text · verified 2026-10-26

2. Housing leases. Rules on hygiene, the landlord's liability for ordered works and certain other housing protections are public order and cannot be waived. Housing leases last at least one year, binding on both parties, unless agreed otherwise. Rent must be stated in national currency and, absent agreement, is payable monthly in arrears. The written lease must contain at least the parties, location and detailed description of the property and its condition, the rent and any guarantee.
Cost to do it: No fee.
Example: A US dollar rent clause in a housing lease breaches art. 2448 D; set the rent in pesos with an agreed adjustment instead.Código Civil Federal arts. 2448, 2448 C, 2448 D, 2448 E and 2448 F (added DOF 7 February 1985, reformed DOF 21 July 1993), CCF arts. 2448 to 2448 F, 1993-07-21 official text · verified 2026-10-26

3. Tenant preference to buy. If the owner decides to sell leased housing, the tenant must receive written notice of the price, terms and conditions and has 15 days to accept in writing on those terms, paying the amounts due on acceptance; any change in the offer requires a new notice and a new 15 day period. In any lease that has lasted over 5 years where the tenant made important improvements and is current on rent, the tenant is preferred on equal terms in a sale.
Cost to do it: No fee.Código Civil Federal arts. 2447 and 2448 J, CCF arts. 2447 and 2448 J, 1993-07-21 official text · verified 2026-10-26

4. Ending a lease. Leases end on expiry of the term, agreement, nullity, rescission and other listed causes. Leases without a fixed term end at the will of either party with 15 days written notice for urban property and one year for rural property. If the tenant stays on without objection after the term, the lease continues for an indefinite term at the agreed rent, and third party guarantees end at the original term unless agreed otherwise. The landlord may rescind for unpaid rent.
Cost to do it: Eviction litigation costs vary by state.Código Civil Federal arts. 2478, 2483, 2487 and 2489, CCF arts. 2478, 2483, 2487 and 2489, 1993-07-21 official text · verified 2026-10-26

5. Registration and tax links. Leases longer than 6 years, or with rent paid more than 3 years in advance, are registrable and bind third parties only once registered. Landlords must issue electronic invoices; in eviction suits for unpaid rent, the judge requires the landlord to prove that invoices were issued and informs the tax authority if not.
Cost to do it: State registry fee for recording the lease.Código Civil Federal arts. 3007 and 3042, section III; Ley del Impuesto sobre la Renta art. 118, section III, paragraph added DOF 9 December 2019, CCF art. 3042; LISR art. 118, 2019-12-09 official text · verified 2026-10-26

Worked example

A foreign company leases an office floor in Monterrey for 12 years at MXN 350,000 a month (about USD 18,753). The term is under the 20 year commercial cap, the lease is signed in writing and, since it exceeds 6 years, registered so that a later buyer or creditor of the landlord must respect it (CCF arts. 2398, 2409 and 3042). As a business lease it bears 16 percent VAT (see the VAT page).

Step by step

1. Classify the use (housing, commercial, industrial, rural) and keep the term within 10 or 20 years.
2. Put the lease in writing with the art. 2448 F minimum content for housing and state housing rent in pesos.
3. Agree guarantees and how they survive any holdover (CCF art. 2487).
4. Register leases over 6 years or with rent prepaid over 3 years.
5. Issue or demand invoices, and apply the tax withholding rules on the rental income tax page.

Common traps

Housing rent in dollars: rent must be in national currency (CCF art. 2448 D).
Selling leased housing without a written offer to the tenant: the tenant has a 15 day preference right (CCF art. 2448 J).
Unregistered long leases: they do not bind third parties (CCF arts. 3007 and 3042).
Holdover: staying on after expiry turns the lease indefinite, and guarantors are released at the original term unless agreed (CCF art. 2487).
State law governs: these are Federal Civil Code rules; the state civil code where the property sits applies and may differ.

Sources

← Title, deeds and the Public Property Registry: when a notarial deed is required, preventive notices, registration effects, adverse possession and a due diligence checklistSelling property: income tax for resident individuals and non residents, the 700,000 UDI home exemption, the 5 percent state payment and notary withholding →