Buying Mexican Real Estate Through an LLC or Retirement Account: Questions to Ask First

Tue, 10 Nov 2026 17:36:59 -0600

By Jesús Barrios Huerta, CEO of RESMA Real Estate · San Miguel de Allende · Updated: 10 Nov 2026 · Leer en español

Short answer: it can be done, but there is no structure that suits everyone. Owning through a company or a retirement account adds rules in Mexico, rules in your home country, and costs that a direct purchase does not have. These are the questions to bring to a tax advisor and an attorney who know both jurisdictions before you choose.

The three structures people ask about

A foreign company (for example, a US LLC)

Mexican law treats foreign legal entities like foreign individuals when they acquire property outside the restricted zone: they file the written agreement with the SRE before acquiring. The SRE asks for the company's incorporation documents and powers, apostilled or legalized and translated. A foreign company may face additional Mexican tax and registration obligations if the property generates income, and how your home country treats the LLC for tax purposes does not determine how Mexico treats it.

A Mexican company

A Mexican corporation (for example, an S.A. de C.V. or S. de R.L. de C.V.) with foreign shareholders can own property. It has its own accounting, tax filings and annual costs, so it is usually considered for business uses — rentals at scale, hospitality or development — rather than a single personal residence.

A self-directed retirement account (for example, a US IRA)

Some custodians allow retirement accounts to invest in real estate, including abroad. US rules prohibit certain transactions between the account and "disqualified persons," which generally include the owner and close family. In practice, that means you or your family generally cannot use the property personally. Not every custodian accepts foreign real estate, and the custodian (or an entity owned by the account) must be able to sign before a Mexican notary.

Questions to answer before you decide

What is the property for? Personal use, rental, a future sale, or a business. The answer changes everything else.
Who will sign at the notary, and with what powers? Mexican notaries require proof of the entity's existence and of the signer's authority, apostilled and translated.
How will Mexico tax the income and the eventual sale? Ask a Mexican tax advisor about income tax on rentals, VAT where it applies, and capital gains on sale for that structure.
How will your home country tax it? Ask your home-country advisor about reporting foreign entities and accounts and about any treaty relief.
What does it cost each year? Accounting, filings, registered agents, custodian fees.
What happens on death or divorce? Structures change how property passes to heirs.
How do you exit? Selling a company or transferring property out of it has its own taxes and steps.

When a simple purchase may be enough

For a single home for personal use, many buyers in San Miguel de Allende simply buy in their own name, file the SRE agreement and make a Mexican will. It is not the only option, but it is the baseline every other structure should be compared to.

How RESMA can help

We can coordinate the documents the notary and seller will ask for and share our local experience with timelines. We do not give tax or legal advice on structures; we work alongside your advisors.

Educational information, not legal or tax advice. This article describes general considerations in Mexico and, for retirement accounts, in the United States. Your situation requires review by qualified professionals.

Frequently asked questions

Can my IRA buy a house in San Miguel that I use on vacation?

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