Frequently Asked Questions
Everything you need to know about buying property in Puerto Escondido, Mexico.
Can foreigners buy property in Mexico?
Yes. Foreigners can own property outright anywhere in Mexico's interior. For property within the "restricted zone" — within 50 km of the coast or 100 km of an international border, which includes Puerto Escondido — foreign buyers purchase through a fideicomiso (bank trust). This is a fully legal mechanism established in Mexican law that grants you all the rights of ownership, including the right to sell, rent, remodel, or pass the property to heirs. The fideicomiso is renewed in 50-year terms and can be renewed indefinitely.
What is a fideicomiso?
A fideicomiso is a bank trust used for foreign ownership of real estate in Mexico's restricted zone. A Mexican bank holds the legal title to the property on your behalf, while you — the beneficiary — retain full control and all rights of use, enjoyment, and profit. You can build on the land, rent it out, sell it, or bequeath it. The trust is established through a Mexican notary public and registered with the Ministry of Foreign Affairs. The initial term is 50 years and is renewable, making it a secure and permanent form of ownership.
What are the costs of buying property in Puerto Escondido?
Typical closing costs in Mexico range from 5% to 8% of the purchase price. These include the acquisition tax (ISABI, usually 2%–3%), notary fees (1%–2.5%), fideicomiso setup fee (approximately $1,000–$1,500 USD), annual trust fee ($500–$800 USD per year), appraisal, and registration fees. If you're buying from a developer, VAT (IVA) of 16% may apply to the construction portion. We provide a detailed cost breakdown for every property so there are no surprises.
Is Puerto Escondido a good investment?
Puerto Escondido has experienced significant growth over the past decade, driven by rising international tourism, a thriving surf culture, improved infrastructure, and its reputation as one of Oaxaca's most desirable coastal destinations. Property values in key neighborhoods have appreciated steadily, and rental yields from vacation and long-term rentals remain strong compared to more established Mexican beach markets. The planned highway improvements and growing airlift from major cities continue to support the area's long-term investment outlook.
What areas in Puerto Escondido are best for buying?
Puerto Escondido offers diverse neighborhoods, each with its own character. La Punta is the bohemian surf hub, popular with digital nomads and investors seeking vacation rental income. Bacocho is a quieter residential area on the cliffs above the ocean with larger lots and ocean views. Sector Juarez is an emerging neighborhood between La Punta and the center, attracting buyers looking for value. Rinconada is a hillside area offering privacy and panoramic views at more accessible price points. Carrizalillo sits above one of Puerto Escondido's most beautiful coves, known for upscale homes. We can help you choose the area that matches your goals — whether that's rental income, a personal retreat, or a development opportunity.
Do you help with the legal process?
Absolutely. We guide you through every step of the buying process, from initial offer to signing at the notary. We work with trusted local attorneys and notaries who specialize in foreign property transactions. Our team helps coordinate the fideicomiso setup, due diligence on the property title, contract review, and closing logistics. While we are not a law firm, we ensure you have qualified legal counsel at every stage.
What languages does your team speak?
Our team is multilingual. We are fluent in Spanish, English, and Polish, so we can assist international clients comfortably in their preferred language throughout the entire buying or selling process.
How do I schedule a property viewing?
You can reach us directly to schedule a viewing or ask any questions. Email us at info@falaestates.com or message us on WhatsApp at +52 954 111 9911. We typically respond within a few hours and are happy to arrange in-person tours, video walkthroughs, or a phone call to discuss your needs before you visit Puerto Escondido.