Buying a property in Mexico can be a daunting process, but by hiring a trusted local lawyer to help out things become a whole lot easier and any potential pitfalls can be avoided. First of all, if a property is within a ‘restricted zone’ (within 50km of a beachfront or 100km of a land border) then either a bank trust must be set up or a Mexican corporation established, depending on whether the property is for residential or commercial purposes. The lawyer will be able to help with this process, and it is likely to add an extra couple of months to the transaction timetable.

Once a property has been decided upon and all legal checks have been carried out by the lawyer pertaining to things such as land titles, the buying process can begin. Once an offer on the property has been accepted, a deposit of around 10 percent is paid into an escrow account and further legal checks are carried out during a grace period. If the buyer pulls out at this time, the deposit is forfeit, and vice versa. Once final checks are confirmed – things like outstanding taxes on the land, for example – the purchase can be completed, the contract is signed and all outstanding fees are paid in full. The documents are then sent to the local land registry for them to be officially recognised and the property signed over to the buyer.

Lawyer, notary and estate agent fees vary, and applicable taxes usually amount to around 6.5 percent of the total cost.