Buying a presale property in Puerto Vallarta as a foreigner? Great choice — but don’t skip the legal and financial basics.
Here’s what you must know before signing that contract.
Trusts for Foreign Buyers
Under Mexican law, foreigners can’t directly own land within 50 km of the coast.
So how do you legally own that beautiful ocean-view condo?
You buy through a Fideicomiso, a Mexican bank trust.
The bank holds the title — you control the property.
You can sell, lease, or will it to your heirs.
It’s 100% legal and secure.
Property Insurance: What’s Covered?
Don’t assume your HOA fees include insurance.
You’ll need a Mexican property insurance policy.
It should cover:
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Fire & hurricane damage
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Earthquakes (yes, they happen)
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Liability protection
Some presale developers offer a year of insurance — ask upfront.
Taxes: Know What You Owe
Expect to pay:
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Acquisition tax: ~2% of the property value
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Annual property tax (Predial): Very low compared to U.S. or Canada
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Capital gains tax: When you sell — often negotiable or reducible
Also, if renting it out? Declare the income in both Mexico and your home country.
Work with a bilingual notario and a cross-border tax pro.
Buying in Puerto Vallarta presale can be smooth — if you prepare properly.
Still have questions? Contact VR Realty today to walk you through the entire process, step by step.