Mexican real estate has its own vocabulary — and not understanding it can cost you money, time, or worse. This glossary defines the 30 most important terms you'll encounter when buying, owning, or selling property in Mexico as an American. Bookmark it and refer back whenever a term comes up.
Ownership & Legal Structure
Fideicomiso (fee-day-coh-MEE-so) — A Mexican bank trust that allows foreigners to own property in the restricted zone. The bank holds legal title; you hold all beneficial ownership rights. Lasts 50 years, renewable indefinitely. → Full guide
Restricted Zone (Zona Restringida) — All land within 50 km of any coastline and 100 km of any international border. Foreigners must use a fideicomiso to own residential property here.
Beneficiary (Fideicomisario) — You, the foreign buyer. The person who holds all ownership rights in a fideicomiso. You control the property; the bank acts on your instructions.
Trustee (Fiduciario) — The Mexican bank that holds legal title to the property in the fideicomiso. Their role is purely administrative.
Settlor (Fideicomitente) — The person who transfers the property into the trust — usually the seller.
Escritura (Pública) — The official deed of the property, drafted and formalized by a notario público. This is the document that proves ownership and is registered in the Public Registry.
Ejido (eh-HEE-doh) — Communal agricultural land that cannot be privately owned by foreigners. The single biggest risk for American buyers. → Full guide
Dominio Pleno — The legal process by which ejido land is converted (privatized) into private property. Must be fully completed before a foreigner can legally purchase.
People & Institutions
Notario Público — A government-appointed legal authority who oversees all real estate transactions. Conducts title searches, drafts deeds, calculates taxes, and registers transfers. Far more powerful than a U.S. notary. → Full guide
SRE (Secretaría de Relaciones Exteriores) — Mexico's Ministry of Foreign Affairs. Issues the permit that authorizes the creation of a fideicomiso for a foreign buyer.
SAT (Servicio de Administración Tributaria) — Mexico's tax authority (equivalent to the IRS). Issues RFCs and administers tax obligations.
AMPI (Asociación Mexicana de Profesionales Inmobiliarios) — Mexico's professional real estate association. AMPI-affiliated agents are licensed, trained, and held to ethical standards.
INM (Instituto Nacional de Migración) — Mexico's immigration authority. Handles residency card processing after you enter Mexico with a consulate-issued visa.
Taxes & Fees
RFC (Registro Federal de Contribuyentes) — Mexico's tax identification number. Essential for closing, rental income, and claiming the capital gains exemption when selling. → How to get one
Predial — Annual property tax paid to the municipal government. Remarkably low: typically $100–$400/year. → Full guide
ISAI (Impuesto Sobre Adquisiciones de Inmuebles) — The acquisition tax paid by the buyer at closing. Varies by state: 2%–4% of the property's assessed value.
ISR (Impuesto Sobre la Renta) — Income tax. Applied to rental income and capital gains from property sales. Paid to SAT.
CFDI (Comprobante Fiscal Digital por Internet) — Mexico's official digital tax invoice. Required for any expense you want to deduct — improvements, professional fees, etc. No CFDI = no deduction.
Factura — Common term for an official tax invoice (CFDI). When you pay for property improvements, always ask for a factura.
UDI (Unidad de Inversión) — An inflation-indexed unit used in Mexican finance and tax law. The capital gains exemption for primary residences is measured in UDIs (~700,000 UDIs ≈ 5–6 million pesos as of 2026).
UMA (Unidad de Medida y Actualización) — A unit used to calculate government fees and thresholds, including residency visa income requirements. Adjusted annually.
Transaction Terms
Contrato de Compraventa — Purchase agreement (contract) between buyer and seller specifying price, terms, earnest money, and closing timeline.
Arras / Enganche — Earnest money deposit. Typically 5%–10% of the purchase price, held in escrow until closing.
Poder Notarial — Power of attorney. Allows a representative to sign legal documents on your behalf. Required if you close remotely from the U.S. Must be notarized and apostilled if signed abroad.
Apostille — An international certification that validates a document (like a power of attorney or death certificate) signed in one country for use in another. Required for many Mexico-bound documents signed in the U.S.
Cesión de Derechos — Assignment/transfer of beneficiary rights. Used when a buyer takes over the seller's position in an existing fideicomiso rather than creating a new one.
Registro Público de la Propiedad — The Public Registry of Property. The government office where all property deeds and trust agreements are officially recorded. Registration here is what makes ownership legally recognized.
Constancia de No Adeudo — Certificate of no tax debt. Issued by the municipality confirming that predial and other local taxes are current. Required by the notario before closing.
Residency
Residente Temporal — Temporary Resident visa. Valid 1 year, renewable up to 4 years. After 4 years, convertible to permanent. Financial requirements: ~$4,100–$4,400/month income or ~$70,000–$74,000 in savings (2026). → Full guide
Residente Permanente — Permanent Resident visa. No renewal required. Higher financial requirements: ~$7,200+/month or ~$300,000+ in savings.
CURP (Clave Única de Registro de Población) — Mexico's general population identification number. Similar to a Social Security Number for identification purposes. Obtained during the residency process.
Bookmark this page. You'll use it throughout your buying process and beyond.