Under Mexican law, foreigners can own property, but there are restrictions in the Restricted Zone—within 50 km of the coast or 100 km of international borders. Puerto Escondido falls within this zone.
To buy here, you’ll need to use a fideicomiso (a bank trust).
What is a Fideicomiso?
A fideicomiso is a trust agreement set up through a Mexican bank that holds the property on your behalf. You are the beneficiary and retain full rights to sell, lease, remodel, or pass the property on to your heirs.
Step 2: Choose a Reliable Real Estate Agent
Buying property in a foreign country requires local knowledge. Partner with a bilingual, experienced real estate agent in Puerto Escondido who understands the local market, legal requirements, and can help you find properties that fit your goals—whether it’s beachfront living, investment rentals, or retirement homes
Step 3: Research Neighborhoods & Property Types
Puerto Escondido offers diverse options:
- Zicatela – Popular with surfers and tourists; ideal for vacation rentals.
- La Punta – Trendy and walkable, perfect for digital nomads or retirees.
- Rinconada – Family-friendly and quieter; great for long-term living.
- Bacocho – Residential and upscale; close to the airport.
Step 4: Make an Offer and Sign the Purchase Agreement
Once you’ve selected a property:
- You’ll make a deposit, usually 5–10% of the property price.
- Your agent will help you negotiate the price and terms.
- A purchase agreement is drawn up and signed by both parties.
Step 5: Set Up the Fideicomiso
Your real estate agent or notary will:
- Submit an application to Mexico’s Ministry of Foreign Affairs (SRE).
- Help you choose a Mexican bank to establish the fideicomiso.
- Draft the trust agreement naming you as the beneficiary.
This process takes 4–6 weeks.
Step 6: Finalize the Sale with a Mexican Notary
The notary public is a legal authority in Mexico. They:
- Validate ownership and legal documents.
- Conduct the title search.
- Oversee payment of taxes and closing costs.
- Register the property under the fideicomiso.
You’ll pay closing costs of about 5–7% of the property price.
Step 7: Enjoy or Rent Out Your Home
Congratulations—you now own a home in Puerto Escondido!
You can:
- Live in it full-time or seasonally.
- Rent it short-term to tourists or long-term to locals.
- Sell or transfer it at any time.
Bonus Tips
Hire a bilingual attorney to review all documents.
Check that utilities, taxes, and property documents are up to date.
Ask about HOA fees if buying in a gated community.
Final Thoughts
Buying a home in Puerto Escondido as a foreigner is 100% possible—and increasingly popular. With expert help and a proper understanding of the fideicomiso system, you can secure your dream home in this coastal paradise.
Need help navigating the process or finding the right property? Contact our team for a free consultation and local guidance.
