Selling Property in Mexico as a Foreign Owner

Whether you’re liquidating an investment, returning home, or upgrading your property, selling Mexican real estate as a foreigner follows the same process as any Mexican seller — with a few details that specifically affect non-residents and non-citizens. This guide walks through the full process.

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Step 1: Decide How You’ll Sell

You have three main paths:

List with a real estate agent: Most common. Agents in Mérida typically charge 3–5% commission (paid by the seller at closing). Look for agents with active buyer networks and online presence on Inmuebles24, Lamudi, or international platforms like Point2Homes.

Sell directly (FSBO): Possible but requires your own marketing, negotiations, and coordination with the notary. Works well if you have a motivated buyer already.

Developer/investor sale: For properties in areas with active development interest, selling directly to a developer or cash investor can close faster (sometimes 30–45 days) at a slight discount to market.

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Step 2: Price Your Property

No national MLS exists in Mexico, so pricing requires local comparables. Your agent should pull:

• Active listings of similar properties in the same colonia
• Sold properties in the last 12–18 months (agents with access to closed transaction data)
• Current market velocity (how long similar properties are sitting)

Valuation for fideicomiso holders: If your property is held in a bank trust (fideicomiso), the notary will value it at the time of sale. The transfer simply assigns the trust beneficiary status to the new buyer — or dissolves the trust if the buyer will hold direct title.

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Step 3: Accept an Offer and Sign a Promissory Contract

Once you find a buyer and agree on price:

1. Promissory contract (promesa de compraventa): Signed by buyer and seller, typically with buyer depositing 5–10% earnest money.
2. Notary selection: Usually the buyer selects (and pays for) the notary, but this is negotiable.
3. Timeline to closing: Set in the promissory contract — typically 30–60 days for cash purchases.

As the seller, your main obligation at this stage: provide complete documentation (see Step 4).

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Step 4: Gather Your Documents

The notary needs from you:

• Your deed (escritura) — the registered document from when you bought
• Current predial receipts — typically 1–5 years of paid property tax receipts
• No-debt certificate (constancia de no adeudo) — from the municipality confirming no predial arrears
• Utilities no-debt certificates — CFE (electricity), JAPAY (water in Mérida)
• HOA no-debt certificate — if the property is in a private development
• Your passport — valid, and sometimes notarized/apostilled if you’re abroad
• RFC (if you have one) — your Mexican tax ID
• Proof of acquisition cost — for capital gains calculation

If you’re selling a fideicomiso: The bank (trustee) must provide the trust certificate and the notary coordinates the transfer or termination.

Selling from abroad: A power of attorney (poder notarial) allows someone in Mexico to sign on your behalf. The POA must be apostilled and, if drafted abroad, translated to Spanish.

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Step 5: Capital Gains Tax (ISR)

This is the piece most foreign sellers underestimate. Mexico taxes the capital gain on property sales. The seller pays — not the buyer.

How the Tax Is Calculated

The notary calculates the capital gain as:

Gain = Sale price − Adjusted acquisition cost

The “adjusted acquisition cost” includes:

• What you originally paid
• Closing costs you paid at purchase (notary fees, ISAI)
• Capital improvements (documented — you need receipts)
• An inflation adjustment (the base cost is updated for inflation)

Tax Rate

• Residents: Can use an annual exemption if the property was their principal residence for 2+ years (and they only use it once every 3 years); the rate is 35% on the remaining gain
• Non-residents: Subject to withholding. The notary withholds whichever is lower: 25% of the gross sale price OR 35% of the net gain

Practical example:

• Sold for $200,000 USD
• 25% of gross: $50,000 USD
• Adjusted cost $120,000 → gain $80,000 → 35% of gain = $28,000 USD
• → Notary withholds $28,000 (whichever is lower)

The Primary Residence Exemption (for Foreign Sellers)

Non-Mexican-citizens CAN claim the primary residence exemption if:

• The property was your primary residence
• You can prove it (Mexican utility bills, voter registration is not available, so: proof of residency status, RFC registered at the address)
• You haven’t used the exemption in the last 3 years
• The property doesn’t exceed specific size/value thresholds

This exemption can reduce or eliminate the capital gains withholding. Discuss with the notary well before closing if you believe you qualify.

Selling a Fideicomiso Property

The capital gains calculation is identical — the fideicomiso structure doesn’t change the tax, only the title mechanism. The trust is either transferred to the new beneficiary (if they’ll also use a fideicomiso) or dissolved (if they hold direct title).

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Step 6: Closing Day

At closing, the notary:

1. Reads the deed of sale (escritura de compraventa) aloud before both parties
2. Both seller and buyer sign
3. Buyer’s funds arrive (usually by bank wire — same-day or prior-day)
4. Notary withholds and remits taxes on your behalf
5. Keys exchange hands

You receive: The net sale price minus agent commission, notary fees (usually buyer’s responsibility), and capital gains tax withholding.

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Step 7: Repatriating Your Funds

Getting your sale proceeds back to your home country:

Bank wire: The standard method. Your Mexican bank account receives the funds, then you wire internationally. Most Mexican banks allow international transfers for documented real estate transactions.

Documentation you’ll need for the wire:

• Copy of the signed deed
• Proof of tax payment from the notary
• AML documentation (anti-money laundering) from your bank — Mexico’s financial institutions ask for source documentation on large transfers

Currency: You’ll receive pesos unless you negotiate USD (occasionally done for high-end international transactions). Budget for currency conversion fees and exchange rate timing.

US/Canadian reporting: If your Mexican bank account balance plus other foreign accounts exceeded $10,000 USD at any point in the year, FBAR reporting applies. The sale proceeds themselves must be reported as a capital gain in your home country (with Mexico withholding crediting as foreign tax paid).

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How Long Does Selling Take?

Phase	Timeline
Listing to accepted offer	1 week – 6 months (market-dependent)
Promissory contract to closing	4–8 weeks
Notary registration (after closing)	3–6 weeks
Wire transfer received in home country	3–7 business days after closing

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Common Pitfalls for Foreign Sellers

Surprise capital gains tax: The notary will withhold before releasing funds. If the gain is large, the withholding can be substantial. Calculate this before you commit to a price.

Missing documentation: Not having all predial receipts, utility no-debts, or HOA clearances can delay closing. Start collecting these 60+ days before your target close date.

POA issues: If you’re selling from abroad, your power of attorney must be properly apostilled and authenticated. A poorly drafted POA can invalidate the closing.

Fideicomiso bank coordination: The trustee bank (BBVA, Scotiabank, etc.) has its own timelines and requirements. Notify your bank of the pending sale early — don’t wait until the week of closing.

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Capital gains tax selling property Mexico → Power of attorney guide → Currency exchange and wire transfers → Mexican real estate glossary → Talk to an advisor →

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Tax rules, withholding rates, and exemption thresholds can change. This guide reflects Mexican law and practice as of 2026. Always verify current rules with a licensed Mexican notary before any sale transaction.