(818) 309 0168
Ask for Bernardo: Correo 15, Centro, San Miguel de Allende, Guanajuato, México

Buying a house in San Miguel de Allende?

Buying a House in México

and other helpful information for the foreign buyer

México has restricted zones in which a foreigner cannot buy real estate. Here in San Miguel de Allende, we are far from the restricted zone. Therefore, foreign nationals can purchase and own property in their own name, deed simply.

Why Use a Local Real Estate Agent?

I highly recommend using a local professional real estate agent. You want someone who knows the town, the market, and has seen trends over the years.  You want someone who knows the process in this locality.  You want someone who can facilitate the logistics of changing utilities into your name and assist you in the general transition of moving to a foreign country.

The Process

First and foremost we will have a coffee together so we can chat and understand what is it that you want!

We work together with more than 180 real estate agents and brokers in San Miguel de Allende so we can find the perfect property.

We will make an Offer to Purchase, we can do this in English but once everyone has signed we have to do it in Spanish, the official document it is called Compraventa.

We then place a 10% Deposit + 50% of the escrow fee into an escrow account within 3-5 days of signing the Compraventa.

We then place a 10% Deposit + half of the escrow fee into an escrow account within 3-5 days of signing the Compraventa.

The 10% deposit is non-refundable in the event the Buyer fails to perform without just cause. The Seller is subject to the same penalty payable to the Buyer if the Seller fails to perform without just cause.

Home Inspections are not necessary. This fee to the Buyer is $350 USD. In México, home inspections are used differently than in the U.S, here they are used as an “out clause” in the event the inspection finds something wrong with the property. If the owner is not willing to make the repairs the Buyer can back-out without penalty.

“The escrow account benefits both parties.
The escrow fee of  around $600USD is shared 50/50 by the Buyer and Seller.”

The Closing

when you acquire your property

Closing Dates are generally within 30-45 days. They can be faster or extended, upon mutual agreement of both parties.

As a foreigner, each Buyer will need to apply for an SRE Permit (Permiso de Servicio Relaciones Exteriors) the cost is $2,500 MXN

The Total Costs to Purchasing a House in México are as follows
Purchase Price of the home Escrow Fee ($300-$325: 50% of total)
Closing Costs (1.2% to 1.75% of the sales price)
Acquisition Tax (approx. 4% of the sales price)
SRE Permits ($2,500 MXN per Buyer)
Optional Home Inspection ($300-$350)

How Can I Pay for my House in San Miguel de Allende, México?


Most home purchases are in cash USD, via wire transfer. Mortgages in Mexico are possible but the terms are not desirable. That is why most transactions are in cash, via wire transfers.


To obtain a mortgage in Mexico you will need assets and an established credit history in Mexico. Financing is generally with 40%-50% down, at 10% or higher interest rate for terms of 10-20 years.

Property Taxes

On a $400,000 home, the 2017 taxes would be about $400. USD (but payable in pesos). If you pay in January you receive a 15% discount; February a 10% discount; March-June, no discount; July & after, no discount plus small penalties.

Title Insurance

Title Insurance is available here, although it is a foreign concept and perceived as not necessary because of the scope of work performed by the Notario for closing and registering the new deed. The Notario is responsible for researching the history of ownership of the property (going back generations!), providing a certificate of no-lien, and surveying the property and construction for verification. This work gives you a clear deed. The cost for title insurance is about 2% of the purchase price.

Migratory Status

As a foreigner you can purchase and own property in Mexico. Time limits in-country are contingent on your migratory status. You can purchase and own property with a Tourist Visa.