Sending Money to Mexico for a Property Purchase

For foreign buyers, getting funds into Mexico for a real estate purchase is one of the most logistically complex parts of the transaction. The actual wire transfer seems simple on paper — but the timing, exchange rates, and anti-money-laundering requirements can create friction at exactly the worst moment. Planning ahead makes this smooth; ignoring it causes last-minute crisis.

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How Mexican Property Purchases Are Paid

Property in Mexico is almost always paid in Mexican pesos (MXN) at closing — not in USD or other foreign currencies, even when prices are quoted in USD. The notary will tell you the exact MXN amount due a few days before closing.

Exception: Some transactions in resort markets or with foreign-to-foreign transactions may denominate in USD, but this requires specific agreement and is less common in Mérida’s residential market.

Practical implication: As a foreign buyer, you need to convert your home currency to MXN at some point in the process. The timing and method of that conversion significantly affects your total cost.

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Method 1: International Wire Transfer (Most Common)

Most foreign buyers wire money from their home country bank account to their Mexican bank account (or directly to the notary’s trust account), then the peso conversion happens in Mexico.

Step-by-step:

1. Open a Mexican bank account (BBVA, Banorte, HSBC, Scotiabank, etc.) — you’ll need this to receive funds. See our banking guide for details on opening an account as a foreigner.

2. Wire USD (or CAD, EUR, etc.) to your Mexican account — most Mexican banks accept wire transfers in major foreign currencies and then convert to pesos at the bank’s exchange rate.

3. Alternatively, wire to the notary’s escrow account — some notaries and real estate attorneys maintain trust accounts in USD; confirm this option early.

4. The bank converts to MXN at their spot rate plus a spread — typically 0.5–2% worse than the interbank midpoint rate.

Timing: International wires to Mexico typically take 1–3 business days. Wire transfers should be initiated 3–5 business days before closing to be safe. Never wait until the day before.

US bank wire fees: Typically $25–$50 USD outgoing fee from your US/CA bank. The Mexican receiving bank may charge an incoming wire fee as well ($10–$30 USD equivalent).

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Method 2: Currency Exchange Brokers (Better Rates)

For large transactions ($50,000+ USD), using a specialist currency exchange broker instead of your bank can save significant money.

Why: Banks add a 1–3% spread to the exchange rate on top of their fees. On a $200,000 USD transaction, that’s $2,000–$6,000 USD extra. Currency brokers typically offer tighter spreads (0.2–0.8%) and can give you a forward contract (see below).

How it works:

1. Open an account with a currency broker (examples: Wise Business, OFX, XE Trade, Moneycorp, Global Currency Exchange)
2. They send you a quote for the exchange rate
3. You wire the USD to them
4. They wire MXN to your Mexican bank account (or sometimes USD to a Mexican account)
5. You use the MXN for closing

Lead time: Allow 3–7 business days for the broker process plus the onward transfer to Mexico.

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Method 3: Forward Contract (Lock Your Rate)

If there’s a gap between when you agree on a purchase price and when you close (typically 4–12 weeks), your actual cost in USD depends on the MXN/USD exchange rate at closing — which could move against you.

A forward contract lets you lock today’s exchange rate for delivery at a future date.

How it works:

• You agree with a currency broker today: “I will buy X MXN at today’s rate in 8 weeks”
• You typically deposit 5–10% now, remainder near delivery
• No matter what the rate does in those 8 weeks, you pay the agreed rate

When this matters most:

• The MXN/USD rate has been volatile in recent years. A 5% swing in exchange rates on a $300,000 USD purchase is $15,000 — a very real financial exposure.
• If you’re budgeting tightly, locking the rate protects your budget

Downside: If the MXN weakens (good for you as a buyer), you don’t benefit from the improvement — you’re locked in.

Currency brokers like Moneycorp, OFX, and World First offer forward contracts for real estate transactions. Most banks do not offer this to retail customers.

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Anti-Money Laundering Requirements

Mexico takes anti-money laundering (AML) seriously for real estate transactions. You will be required to demonstrate the legitimate source of funds.

What the notary will request:

• Proof of the origin of funds (comprobante del origen de los fondos)
• Your last 3–6 months of bank statements
• For very large transactions: additional documentation of income source, investments, or other legitimate funds

What this means practically:

• You must be able to document where your money comes from
• Moving funds through unusual channels or in multiple small transfers can trigger additional scrutiny
• US FATCA and FBAR obligations also apply — income or accounts associated with the Mexican property may require US reporting

Do not try to work around this. AML compliance is real, notaries are required to report suspicious transactions, and irregular payment structures can create serious legal problems.

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US Tax Implications of the Transfer

Moving money out of the US doesn’t trigger a US tax event in itself — you’re transferring your own capital, not earning income. However:

• FBAR (FinCEN 114): If your aggregate balance in Mexican bank accounts exceeds $10,000 USD at any point in the year, you must file an FBAR
• FATCA (Form 8938): Higher thresholds, but may apply to Mexican accounts holding significant balances
• Consult a cross-border tax advisor; these are reporting requirements, not additional taxes, but non-compliance has penalties

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Practical Timing Guide

When	What to Do
When you make offer	Open Mexican bank account; research currency brokers
When promissory contract signed	Consider a forward contract if worried about rate movement
2–3 weeks before closing	Initiate wire or broker process; get exact MXN amount from notary
5 business days before closing	Funds should leave your home bank
2–3 days before closing	Confirm funds arrived in Mexico and are cleared
Day of closing	Notary confirms payment received; sign deed

Never leave this to the day before closing. Wire delays, bank holds, or documentation requests can delay a closing and may cost you your promissory contract earnest money if you miss a deadline.

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Summary: What Option to Use

Transaction Size	Recommended Option
Under $50,000 USD	Bank wire is fine — simplest
$50,000–$200,000 USD	Currency broker for better rate
$200,000+ USD	Currency broker + consider forward contract
Closing in 8+ weeks	Forward contract to protect budget

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Opening a bank account in Mexico → Closing costs when buying → How long does buying take? → Can foreigners own property in Mexico? → Talk to an advisor →

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Exchange rates, broker availability, and regulatory requirements change. Always verify current requirements with your notary and financial advisors before initiating large international transfers.