Mexico’s real estate framework allows foreigners to lease, purchase, and manage property under conditions established by federal and state civil codes, as well as the Foreign Investment Law. Housing contracts—primarily lease agreements—must be in writing and typically include terms on rent, duration, maintenance responsibilities, and dispute‑resolution mechanisms. Foreign tenants enjoy the same contractual protections as Mexican nationals, including limits on unilateral eviction and the right to judicial enforcement. In tourist or high‑demand areas, landlords often require additional guarantees such as security deposits, co‑signers, or insurance policies (fianzas), all of which must comply with consumer‑protection standards.

Regarding property ownership, foreigners may freely acquire real estate in most of Mexico, except within the “restricted zone,” defined as 50 km from coastlines and 100 km from international borders. In these areas, foreigners may still purchase property through a bank trust (fideicomiso) or through a Mexican corporation, depending on the intended use. All real estate transactions require notarization, registration in the Public Registry of Property, and compliance with tax obligations such as acquisition taxes and capital‑gains reporting. These formalities ensure legal certainty and public record transparency.

Real estate operations also intersect with zoning regulations, environmental rules, and municipal permitting requirements. Foreign investors engaging in commercial or rental activities must comply with tax obligations before the SAT, including obtaining an RFC and issuing electronic invoices (CFDI) for rental income. Additionally, anti–money laundering regulations impose reporting duties on notaries and real estate professionals when transactions exceed certain thresholds. Overall, Mexico’s housing and real estate system provides foreigners with broad access to property markets while maintaining regulatory safeguards, public‑order protections, and oversight of financial and contractual practices.