Thinking about buying property in Puerto Vallarta?
One of the first questions you’ll ask is: Do I pay in dollars or pesos?
The answer isn’t as simple as you’d think — but this guide breaks it down so you’re not left guessing.
How Currency Works in Puerto Vallarta Real Estate
In Puerto Vallarta, real estate prices are typically listed in U.S. dollars (USD) — especially in tourist-heavy areas or when the property is being sold by foreigners.
But here’s the catch:
Legally, all real estate transactions in Mexico must be processed in pesos (MXN).
So while you’ll negotiate and agree on a price in dollars, the actual closing is done in pesos at the exchange rate on the day of payment.
Why Are Prices Listed in U.S. Dollars?
Puerto Vallarta is a top destination for American and Canadian buyers.
Using dollars keeps pricing stable and predictable for foreigners who may be wary of currency fluctuations.
This is common in high-tourism markets like:
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Puerto Vallarta
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Cabo San Lucas
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Playa del Carmen
But don’t let that fool you — you’ll still settle the final transaction in pesos.
So, How Does a Transaction Work?
Let’s say you agree to buy a condo for $300,000 USD.
Here’s how it plays out:
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You sign a purchase agreement in dollars.
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At closing, the notary and bank calculate the peso equivalent using the official exchange rate (typically based on the Banco de México rate).
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The money is transferred and processed in Mexican pesos.
This is where it gets tricky:
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If the peso drops between agreement and closing, the seller may get less.
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If it rises, they get more.
That’s why timing and exchange rate planning matter.
Can I Pay in U.S. Dollars?
Short answer: No.
Mexican law requires that all property transactions be recorded in pesos, including:
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Escrow transfers
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Bank trust (fideicomiso) fees
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Notary fees
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Property taxes
Even if both buyer and seller agree on a dollar amount, it still gets converted into pesos at closing.
Who Handles the Currency Exchange?
Most often, the escrow company or closing agent handles the exchange.
Some buyers use specialist currency transfer companies to lock in rates ahead of time — which can save money and avoid last-minute surprises.
Pro tip: Avoid using your regular bank for large transfers. You’ll get hit with poor exchange rates and fees.
Watch Out for This…
Here’s what many first-time buyers in Mexico don’t realize:
💡 Exchange rates can move fast.
If you’re not careful, that dream home for $300,000 could suddenly cost you $310,000 if the peso strengthens.
Plan ahead. Use a currency exchange service or talk to your real estate agent about how to lock in a good rate.
Key Takeaways
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Most listings in Puerto Vallarta are in USD, but all sales close in MXN.
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The exchange rate at closing determines the final peso amount.
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Only pesos are accepted for official property transactions.
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Use a trusted currency exchange service to manage risk and avoid surprises.
FAQs
Can I buy a house in Puerto Vallarta with U.S. dollars?
You can negotiate in U.S. dollars, but all legal documents and payments are made in pesos.
What if I want to lock in an exchange rate ahead of time?
You can use foreign exchange services to lock in a rate and avoid currency risk. Talk to your agent or escrow company.
Why not just list homes in pesos?
Because many buyers are foreigners, pricing in USD makes it easier for them to understand value and avoid inflation-related changes in the peso.