Can Foreigners Own Real Estate in Mexico? Let’s Talk About the Restricted Zone

[Ciro Antonio Martínez Morales]

Yes, is possible and there are rules.

Mexico’s Constitution (Article 27) sets special conditions for foreign ownership in what’s known as the Restricted Zone:

• 100 km (62 miles) from any international border

• 50 km (31 miles) from any ocean or coastline

These zones include world-famous destinations like Tulum, Playa del Carmen, Los Cabos, and Puerto Vallarta — areas that attract thousands of investors each year.

Within these regions, foreigners don’t acquire title under their personal name the same way they might in the U.S., Canada, or Europe. This isn’t a limitation — it’s a structural difference based on national law.

Why? Because the Restricted Zone was originally created to safeguard Mexico’s national sovereignty, especially near strategic borders and coastlines. However, rather than close the door to foreign investors, Mexico designed a secure and transparent legal mechanism that allows foreigners to hold full rights over a property, including use, sale, rental, inheritance, and renovation.

This mechanism is known as a Fideicomiso, or Bank Trust.

It’s the cornerstone of real estate investing for foreigners in coastal and border areas — and in the next post, I’ll explain exactly how it works, what it costs, and why it’s become the trusted path for thousands of international buyers.

Stay tuned.