Buying Property in Mexico City as a Foreigner: Permit, Notary, Taxes
Mexico City sits outside the restricted zone, so the trust that coastal buyers need does not apply. What does apply: an SRE agreement, a notario and the city's acquisition tax.
A foreigner can buy an apartment or house in Mexico City directly in their own name, because the capital lies outside the restricted zone along borders and coasts where a bank trust (fideicomiso) is required. The buyer first signs the Article 27 agreement with the Ministry of Foreign Affairs (SRE), with a fee of MXN 5,250 as of 2026, and a notary (notario público) handles the deed and the taxes.
Why don’t Mexico City buyers need a fideicomiso?
Article 27 of the Constitution bars foreigners from owning land directly within 100 kilometers of the borders and 50 kilometers of the coasts. Inside that strip, foreigners use a bank trust with an SRE permit. Mexico City is far from both, so direct ownership is available after the SRE step. Our page on what foreigners cannot do in Mexico explains the constitutional rules in more detail.
What is the SRE agreement and how do you get it?
The SRE agreement is the renunciation agreement (convenio de renuncia) under Article 27, Section I of the Constitution. The foreign buyer agrees to be treated as a Mexican national with respect to the property and not to ask their own government for protection over it, on pain of losing the property to the nation. SRE’s Legal Affairs Directorate processes it, and the notary will not sign the deed without it.
Mexico’s single window for procedures lists these requirements for an individual buyer (page last updated July 2026):
- The SRE renunciation agreement form for individuals (SRE-2022-084-006-A).
- A description of the property: surface area, measurements and boundaries.
- A document stating how you are acquiring it and what percentage, following SRE’s examples.
- Your valid immigration document showing that your status allows the purchase.
- Proof of payment of the fee, MXN 5,250.
- Proof of authority if a representative files for you.
Each document goes in the original plus two copies. SRE has 5 business days to ask for corrections, and the single window lists up to three months for the permit itself, so start early. Questions go to [email protected]; the requirements are on the single-window page for property outside the restricted zone. In practice the notary’s office usually prepares and files the SRE paperwork as part of the purchase.
What does the notario do in a purchase?
A Mexican notary is a lawyer appointed by the state to give legal certainty to deeds, not a witness who stamps signatures. In a Mexico City purchase the notary typically:
- checks the seller’s title and requests a certificate of liens (certificado de libertad de gravámenes) from the Public Registry of Property;
- asks for certificates that property tax and water bills are paid up, so debts do not pass to you;
- orders or reviews the appraisal (avalúo) used for the taxes;
- calculates and collects the taxes and duties on the sale and pays them to the authorities;
- drafts the deed (escritura), reads it with both parties and files it with the Public Registry of Property (Registro Público de la Propiedad y de Comercio).
Buyers choose the notary, and quotes can differ, so ask two or three offices for a written budget (presupuesto) that lists fees, taxes and registry costs separately. Before signing, check the address on the Mexico City risk atlas for soil and flood issues.
How much is the property acquisition tax in Mexico City?
The buyer pays the property acquisition tax (Impuesto sobre Adquisición de Inmuebles, ISAI) under Articles 112 to 116 of the Mexico City Fiscal Code. It is a progressive scale: a fixed amount for the price band plus a percentage of the excess over the band’s lower limit. The tax is charged on the highest of three values: the price, the cadastral value or a commercial appraisal.
The city Treasury’s published 2024 table shows how it works:
| Taxable value | ISAI under the 2024 table | Effective rate |
|---|---|---|
| MXN 1,000,000 | about MXN 41,216 | about 4.1% |
| MXN 3,000,000 | about MXN 130,411 | about 4.3% |
| MXN 5,000,000 | about MXN 261,751 | about 5.2% |
These are our calculations from the 2024 table. The bands are updated in the Fiscal Code, so the 2026 figures differ; the notary will calculate the exact amount for your date of signing. Above the top band the rate on the excess reached 7.551% in that table.
What other closing costs should you budget for?
Besides ISAI, expect the notary’s fees, Public Registry fees for recording the deed, the appraisal, the lien and no-debt certificates and the SRE fee. Mexico City publishes the notary fee schedule and registry duties, but they depend on the price and the number of acts in the deed, so ask for them in the notary’s written quote rather than relying on a rule of thumb.
After closing you take over the yearly predial property tax and the water account. Ask the notary whether you need an RFC tax ID for the deed and for a future sale.
This article describes the general procedure and is not legal or tax advice. A notario, a contador or a real estate lawyer decides what applies to your purchase.
Bottom line
Pick the notary early and let the office start the SRE agreement as soon as you have a signed offer, since the permit can take weeks. Get a written quote that lists ISAI, fees and registry costs, and do not hand over the full price before the deed is signed.
FAQ
Can a tourist buy property in Mexico City?
SRE asks for a valid immigration document showing that your status allows the purchase. Ask the notary and SRE whether your entry document qualifies before you sign anything binding.
Can I buy through a Mexican company instead?
Yes, Mexican companies can own property, and companies that admit foreign partners have their own SRE filings. Setting one up has ongoing accounting costs, so get advice from a contador first.
Is a real estate agent required?
No. Agents are optional, and the notary is the official who makes the transfer valid. Some buyers use a lawyer to review the offer and the promise-to-sell contract before the deed.
