Buying Property in Puerto Morelos:
A Foreigner's Guide to Costs

Dreaming of waking up to the Caribbean breeze in your own home here in Puerto Morelos? It's a fantastic dream, and it's definitely possible.

 

But, before you start picking out paint colors, there are some important things to know about buying property in Mexico.

 

It's not quite the same as back home, and some costs might surprise you. Being prepared means a smoother journey to your piece of paradise.

 

How Foreigners Can Own Property

 

For a long time, foreigners couldn't own land close to the coast. The most common way for individuals to buy a home in our coastal area today is through a fideicomiso. Think of a fideicomiso as a bank trust.

 

The bank holds the legal title, but you, as the beneficiary, have all the rights of ownership. You can live in your home, sell it, mortgage it, or rent it out.

 

A fideicomiso runs for 50 years and can be renewed indefinitely. Setup costs run about US$1,000 - $3,000, plus a federal permit fee often around US$1,000, with annual trustee fees of US$500 - $1,000 in the Riviera Maya.

 

Another option, if you're thinking of starting a business, is to set up a Mexican corporation. Your business can then buy property, and you'd be a shareholder.

 

This makes sense if you'll operate a bona fide business and accept the ongoing accounting and tax compliance. It's not a shortcut to avoid a trust for a personal-use home.

 

Understanding the "Hidden" Costs

 

Now, for the part that often catches new buyers off guard--the closing costs. Local real estate pros often say to budget for about 6% - 10% of the property's purchase price in Puerto Morelos and the wider Riviera Maya, especially when a trust is required.

 

This covers several fees. There's the property acquisition tax (ISAI/ISABI), which in Quintana Roo is 3% of the higher of the purchase price or cadastral value.

 

Notary fees vary depending on the property value and what's bundled into their service. Buyers often see fees in the low single digits, but ranges from 1% - 6% are possible. It pays to get quotes from more than one notary.

 

You'll also have appraisal, recording, and registration costs. These typically add another 2% - 4% in some transactions.

 

While these upfront costs feel high, the good news is that ongoing taxes here are low.

 

Predial (annual property tax) is modest by U.S. or Canadian standards, often just 0.1% - 0.3% of assessed value. Early payment discounts are usually available in the first quarter of the year. 

 

The annual fideicomiso trust fee also remains reasonable given the protections it provides.

 

Some buyers may also need a foreign acquisition permit in parallel, which adds a smaller government fee of a few hundred dollars.

 

Finding Your Local Real Estate Ally

 

It's important to find the right real estate agent. Many agents work directly for developers, meaning they only show you properties in one project.

 

An independent agent can be a game-changer since they aren't tied to one development. 

 

They can show you more options across Puerto Morelos and surrounding areas, and they work as your advocate, even after the sale.

 

Also hire a local Notario Publico early in the process. The notary in Mexico is a senior legal officer who calculates taxes, verifies title, and oversees the transfer.

 

You may also want your own attorney for extra peace of mind.

 

Budgeting for Your Seaside Dream

 

So, if you're eyeing a home for $200,000 USD, plan to add $12,000 - $20,000 for closing costs.

 

This range depends on the trust setup, notary fees, recording costs, and whether the ISAI is assessed against the sale price or cadastral value.

 

With a little research, the right team, and realistic budgeting, your dream of owning a piece of Puerto Morelos can become a reality.