How to Buy a Property in Tulum: Step-by-Step Guide
Are you considering investing in Tulum real estate? The process might seem complex at first, but it’s simpler than you think. Here’s a step by step guide to help you understand how it works, so you can confidently make your purchase.
1. Offer Letter & Due Dilligence
Once you’ve found your dream property, the first step is to write and send an offer letter to the developer or seller, you can reserve the property by making a $5,000 USD deposit. This deposit secures the property for you and gives you a 15 day period to review all contracts and do the due diligence on the property with the lawyer. During this time, you can make your final decision. If you decide not to proceed, your deposit will be fully refunded.
Doing proper due diligence is not an obligation, but we highly recommend it to ensure your investment is safe and the process goes smoothly. We work with a trusted lawyer who specializes in real estate and can support you throughout the transaction, but you're free to choose any lawyer you prefer.
2. Promissory Contract & Downpayment
If you’re ready to move forward after the 15 day review period, the next step is to sign a promissory contract with the seller. This agreement outlines the developer’s obligations, including timelines and payment terms. At this stage, you’ll make the downpayment, which is typically 30% of the property’s value.
3. Preparing for Delivery
Approximately three months before your property’s delivery date, it’s time to set up a bank trust (known as a fideicomiso).
In order for any foreigner to own Property in Tulum or any coastal Area in Mexico you need to purchase with a Banktrust (fideicomiso). A Mexican bank administrates the title of the property and you become the beneficiary of that trust. The beneficiary has all rights a Mexican has like: rent, sell, remodel, donate, inherit, mortgage, the use, administration, maintenance, civil responsibility, rental income, mortgage loans, and income from its sale, belongs exclusively to the trustee. The trust institution makes very clear that they have no responsibility to the property and trustees can do pretty much whatever they want with it.
The banktrust has an annual fee of around 600 USD and an initial payment of 2,000 USD which is included on the closing costs.
Another way a foreigner can purchase a property is opening a Mexican Corporation, is fast and affordable, also around $2,000 USD as an initial payment and ready in about
two weeks with two partners. It allows you to buy property, cars, and more as if you were a Mexican national.
However, it comes with long-term responsibilities. You’ll need an accountant forever, even with zero income—and if you don’t have residency, you'll need to give a power of attorney to someone else to act on your behalf.
All purchases must go through the corporate bank account and capital gains tax is unavoidable when selling. You can reduce it with proper deductions, but not eliminate it.
Don’t worry, your lawyer and notary will handle the paperwork. All you need to do is provide the required documents, and we’ll take care of the rest to ensure everything is ready for the final signing.
4. Final Payment & Closing Costs
Once your property is ready for delivery, you’ll need to pay the remaining balance along with closing costs. These costs are typically around 7% of the property’s value and cover all necessary legal and administrative fees. After this, you’ll sign the deed and officially become the property’s owner!
5. Property Management & Furnishing
After the purchase, it’s time to get your property ready for rental or personal use. If your property doesn’t come furnished, we can help you find an interior designer to make your space functional and beautiful. Additionally, if the project doesn’t offer property management services, we can recommend trusted companies to handle everything from maintenance to rentals, so you can enjoy a hassle-free ownership experience.
6. Taxes & Ownership
As a property owner in Mexico, there are a few responsibilities to keep in mind. You’ll need to pay annual property tax, which is very low compared to the US or Canada—around 0.2% of your property’s value.
If your property is in a condominium or gated community, HOA fees is another expense to consider, which is around 2.5 to 3 USD per square meter.
For those planning to rent out their property, keep in mind that rental income is taxable. Non-resident foreigners pay a flat 25% on gross rental income, while residents pay between 0% and 35% depending on income and deductions.
Then, If you ever decide to sell, there may be capital gains taxes. However, if the property is your primary residence and you have resident status in Mexico, you could be eligible for an exemption.
We recommend speaking with a Mexican property tax specialist to get personalized advice and ensure you're fully informed.
We know that buying property in a foreign country can feel overwhelming, but with the right guidance, it’s a smooth and secure process. Our team is here to support you every step of the way—from choosing the right investment to connecting you with trusted legal and notary services. If you have any questions or are ready to take the next step, we’ll be happy to help you move forward with clarity and confidence.