Answers center
The questions we are asked most about buying, selling and renting in Puerto Vallarta and Banderas Bay, answered plainly and with no fine print. This is general guidance, not legal or tax advice: your notary and your accountant confirm the figures for your case. Each answer links to the guide or calculator where we go deeper.
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Buying in Puerto Vallarta
Can a foreigner buy property in Puerto Vallarta?
Yes. A foreigner can own a house or a condo in Puerto Vallarta. Because the city sits inside the restricted zone (the 50-kilometer strip along the coast set by Article 27 of the Constitution), the purchase is made through a fideicomiso (a bank trust) with a Mexican bank, or through a Mexican company, rather than directly in the foreigner's name. Ownership is full: you use it, rent it, remodel it, sell it and pass it on to your heirs.
What is the fideicomiso (bank trust) and what is it for?
It is the legal instrument most often used for a foreigner to own property on the coast. An authorized Mexican bank appears as trustee on the record, but you are the beneficiary and you control the property in every way: you live in it, rent it, improve it, sell it and decide who inherits it. It lasts 50 years and is renewable, and it lets you name substitute beneficiaries so they inherit without probate. The bank charges an annual fee to administer it.
Can I buy from abroad without traveling to Mexico?
Yes, you can buy remotely. The preliminary agreements are signed online, meetings are held by video call, and for the deed before the notary you grant a power of attorney to someone you trust (signed before a notary and apostilled in your country, or signed at a Mexican consulate) so they sign on your behalf. Many of our clients from the United States and Canada close this way, without traveling.
How is the money sent to buy?
The money is sent by international bank transfer to the account indicated by the notary or the trust, with a receipt for each movement. It is never paid in cash: the anti-money-laundering law sharply limits cash payments in real estate, and paying through the bank leaves the paper trail that protects both parties. It helps to let your bank know about the transfer so it is not held.
Taxes and costs
How much are the closing costs when buying?
As a rough rule, budget an extra 4 to 8 percent of the price, on top of the property price itself. That covers the acquisition tax, the notary's fees, the appraisal and registration at the Public Registry; if you are a foreigner, add the cost of setting up the fideicomiso. Your notary gives you the exact figure for your case before signing. You can estimate it with our closing-costs calculator.
What tax does the buyer pay when acquiring?
The buyer pays the real-estate acquisition tax, a municipal tax of around 2 percent of the value that varies from one municipality to another (it is called ISTP in Jalisco and ISAI in Nayarit). It is included in the closing costs, and the notary calculates and remits it at signing.
What tax does the seller pay?
The seller pays income tax (ISR) on the gain, that is, on the difference between what the property cost them and what they sell it for, minus invoiced improvements and selling costs. There is an exemption for a primary residence when the legal requirements are met. The notary calculates and withholds the ISR at signing; it is worth estimating the gain beforehand with our tool.
How much does it cost to keep a property each year?
The typical annual costs are the property tax (predial, the municipal tax for being the owner, which in Mexico is usually low), the maintenance fee if the property is in a condominium (it varies with the amenities) and, if you are a foreigner, the bank's annual fee to administer the fideicomiso. Utilities such as water, electricity and gas are separate, based on usage.
Selling and renting
How much does Services Vallarta charge to sell my property?
On a sale, the fee is 8 percent plus VAT, or 6 percent plus VAT if our own agency finds the buyer; it is paid at the signing of the deed. On a rental, it is the equivalent of one month's rent plus VAT for leases of four months or more, or 20 percent plus VAT for shorter leases. There is a one-time initial advertising investment of one thousand pesos. The fee is paid by the owner, not by the buyer or the tenant. We work under an exclusive service agreement (a minimum of eighteen months for a sale and twelve for a rental), and everything is put in writing and explained before we start.
Can I rent my property on Airbnb? What taxes does it involve?
Yes, you can rent it short-term, but first check that the condominium bylaws allow it, because some limit or forbid it. It carries tax obligations: you pay income tax (ISR) on what you earn and, depending on the case, VAT; platforms like Airbnb usually withhold and remit a share to the tax authority (SAT), and having a tax ID (RFC) means they withhold less. There is also a state lodging tax, charged to the guest. It is worth registering with the SAT and keeping proper books; your accountant will tell you the regime that suits you best.
What is ejido land and why is it risky to buy?
Ejido land is land under social ownership, granted to a group of farmers (the ejido), which is not private property. It cannot be sold like an ordinary house or deeded in your name until it is regularized and converted to full ownership (dominio pleno), a procedure that is not always possible. Buying 'ejido rights' with a simple document is a common source of fraud on the coast. Before paying, confirm with a notary that the land is regularized.
The process and trust
How long does a purchase take in Puerto Vallarta?
It depends on each case, but a cash purchase usually takes four to eight weeks from the accepted offer to the signing of the deed, mainly because of the notary's timelines, the certificates and, if a foreigner is involved, setting up the fideicomiso and the permit from the Ministry of Foreign Affairs. With financing it can take longer. We keep you posted at every step.
Do I need an accredited real estate agent?
It is strongly recommended. In Jalisco, real estate service providers register with the state, and it is best that your advisor holds a credential and belongs to an association such as AMPI. At Services Vallarta, the director is a licensed architect and a member of AMPI Riviera Nayarit, and the manager is an accountant who specializes in housing credit. Checking credentials protects you from fraud.
What is the restricted zone?
It is the strip reserved by Article 27 of the Constitution: 100 kilometers along the borders and 50 kilometers along the coasts, where a foreigner cannot hold land directly in their own name. Puerto Vallarta and almost all of Banderas Bay are within that strip, which is why a foreigner there buys through a fideicomiso or a Mexican company.
About Services Vallarta
Which areas does Services Vallarta cover?
Services Vallarta Real Estate works in Puerto Vallarta, Jalisco, and around Banderas Bay on the Nayarit side (the Riviera Nayarit): neighborhoods such as Versalles, Fluvial Vallarta, Marina Vallarta, the Zona Romántica and Conchas Chinas, and areas such as Nuevo Vallarta, Bucerías, La Cruz de Huanacaxtle, Punta de Mita and Sayulita. It sells, rents and manages houses, condos, land and commercial units.
What makes Services Vallarta different?
It is a Puerto Vallarta real estate agency with a truly accessible website, built by a blind member of the team, that works with a screen reader and keyboard and serves clients in four languages (Spanish, English, French and Chinese). Every listing includes a described walkthrough in words, room by room, so you can get to know it without seeing the photos. The honesty of each listing is upheld under Mexico's NOM-247 standard, and we accompany the client through the whole process, including mortgage guidance.
Talk to a person now
You can write or call us. We answer in Spanish and English.