Buying property in Puerto Vallarta
Puerto Vallarta has long been known as one of Mexico’s most beautiful coastal cities, attracting visitors from around the world with its beaches, culture, and warm community. But more than just a vacation destination, it has also become one of the hottest real estate markets in Mexico. Whether you’re dreaming of a vacation home, planning your retirement, or looking for an investment property, the good news is that foreigners can legally own property in Puerto Vallarta.
This guide walks you through everything you need to know about buying property in Mexico as a non-Mexican buyer from legal requirements to the buying process and insider tips for making the journey smooth and stress-free.
Can Foreigners Buy Property in Puerto Vallarta?
Yes. Foreigners can own property in Mexico, but with specific rules depending on the location. Because Puerto Vallarta is on the coast, it falls within Mexico’s restricted zone (areas within 50 km of the coastline or 100 km of a border). This doesn’t mean you can’t buy it just means you must use a legal vehicle called a bank trust (fideicomiso) or set up a Mexican corporation.
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Fideicomiso (Bank Trust): The most common option. A Mexican bank holds the title to the property, but you are the legal beneficiary with full rights to use, lease, sell, or pass the property on to heirs.
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Mexican Corporation: If you plan to run rental businesses or own multiple properties, forming a corporation can be a better option.
Step-by-Step: Buying Property in Puerto Vallarta
1. Work With a Qualified Real Estate Agent
Partner with a bilingual, experienced realtor who understands both local practices and international clients. This ensures clear communication and guidance through the process.
2. Make an Offer and Sign a Sales Agreement
Once you’ve chosen your property, your agent will help you negotiate terms and prepare an initial purchase agreement.
3. Due Diligence & Escrow
Your attorney (essential for foreign buyers) will verify the property title, check for liens, and ensure all permits and paperwork are in order. Escrow accounts are typically used to secure funds safely.
4. Establish Your Fideicomiso or Corporation
Your attorney will guide you through setting up the bank trust or corporation depending on your goals.
5. Closing the Transaction
Once everything is approved, the notario público (a government-appointed attorney) finalizes the sale, and the property is officially yours.
Key Legal & Financial Considerations
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Closing Costs: Expect 4–7% of the purchase price, covering taxes, legal fees, and bank trust setup.
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Property Taxes: Mexico’s annual property tax (predial) is low compared to the U.S. or Canada.
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Financing: Most foreign buyers pay cash, though some Mexican banks and private lenders do offer financing.
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Residency: Owning property in Mexico does not automatically grant residency, but it can help strengthen your case if you apply.
Why Puerto Vallarta?
Beyond the legal process, buying here is about lifestyle and opportunity. Puerto Vallarta offers:
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Strong vacation rental demand year-round.
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A thriving expat and retiree community.
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World-class amenities: beaches, dining, golf courses, marinas, and healthcare.
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A warm, welcoming culture that makes relocating easier.
Final Thoughts
Buying property in Puerto Vallarta as a foreigner may feel overwhelming at first, but with the right team a knowledgeable realtor, a trusted attorney, and local advisors the process is straightforward and secure.
At Keller Williams Puerto Vallarta, we’ve helped countless international buyers navigate this journey, making sure their investment is not only protected but also rewarding. Whether you’re looking for a beachfront condo, a golf course villa, or a smart rental investment, we’re here to help you make Mexico home.
Contact me today to start exploring safe and stunning properties in Puerto Vallarta.
