Invest with real numbers, not a developer's brochure.
Rental rules, realistic yields, how ownership works, what closing really costs, and how I vet pre-construction before you send a deposit.
Short-term rentals are a regulated business now
Since the March 2024 reform of Quintana Roo's Tourism Law, every vacation rental needs state registration, tax registration and municipal licences, and the platforms withhold taxes.
- State tourism registry (RETUR-Q)Per property, free, renewed yearly. The folio must appear on your listings, and platforms can't list unregistered hosts.
- State tax registration and COFEAn operating certificate per property from SATQ. A 6% lodging tax is added to guests' bookings and collected by the platform.
- Mexican tax ID (RFC)With a validated RFC, platforms withhold 4% income tax and 8% VAT. Without one, up to 20% plus 16%.
- Municipal licencesPlaya del Carmen, Tulum and Cancun each require registration, an annual operating licence and land-use approval.
- Your building's rulesCondo regulations can ban or restrict short-term rentals. I check them before you make an offer.
Current as of November 2026. The rules are still moving; I keep clients updated as new municipal criteria land.
From gross to net Approximate
A hypothetical 2-bedroom condo. An illustration, not a forecast.
| Gross bookings | US$40,000 |
| Platform fees | About 3 to 15% |
| Management | About 20 to 25% of gross |
| Utilities, internet | US$2,500 to $4,000 |
| HOA, predial, trust, insurance | US$4,000 to $6,000 |
| Repairs and replacements | 1 to 2% of value |
| Income tax | Withheld by platform or via accountant |
Many well-run condos in good locations net roughly 4 to 7% a year before home-country taxes. Treat anything quoted at 10%+ net with deep suspicion.
High season runs roughly mid-December to April, plus July and August for some segments. September and October are the slowest.
Full-service short-term managers charge around 18 to 30% of gross. Long-term (12-month) management runs around 8 to 12% of rent.
Before you buy, I pull comparable listing data and real owner statements for similar units in the same building or block.
Most of what's marketed to foreigners isn't built yet
Pre-construction can mean a lower entry price and a payment plan. It also carries real delivery risk. Your protection comes from vetting the developer and structuring payments, not from the renderings.
- Track recordProjects delivered, not started. I visit finished buildings and talk to owners and HOA administrators.
- Land titleIn the developer's name, free of liens, and not ejido-derived without proper conversion. The notary confirms.
- PermitsLand use, construction licence, environmental authorization where required. No permits, no deal.
- Density and zoningOver-density has stopped projects in Tulum.
- FinancingBank-funded, developer capital, or only buyer deposits? The last is the riskiest.
- The real delivery recordPromised versus actual delivery on their last three projects, verified.
Protecting your deposits
- Escrow, or a development trust with a bank that controls how buyer money is released.
- Pay the company's corporate account, invoiced. Never an individual.
- Tie payments to construction milestones, not just calendar dates.
- Negotiate a late-delivery penalty and a clear refund right after a defined delay.
- Be wary of big discounts for paying 100% upfront. That's an interest-free loan to the developer with no collateral.
| Structure | Typical shape |
|---|---|
| Payment plan | 20 to 40% down, milestones during construction, balance at delivery |
| Discount for paying more upfront | 50 to 100% upfront for a lower price (highest risk) |
| Balance at delivery | 30% down, 70% at delivery (lower risk, less common) |
How foreigners own property here: the fideicomiso
The whole coast sits in Mexico's "restricted zone", so foreigners hold title through a bank trust. It's a structure built for foreign buyers and used for decades.
A Mexican bank holds title as trustee; you're the beneficiary with full rights to use, rent, improve, sell and pass on the property. 50-year term, renewable. Name heirs in the trust and skip Mexican probate.
Setup about US$1,500 to $3,500; annual fee about US$500 to $1,000. Approximate
A company you own 100% can hold title directly, if the property is used for business: commercial space, multiple rentals run as a business, development. It needs monthly accounting whether or not it earns. Not for a personal vacation home.
Communal ejido land can't be sold until it's converted to private title and registered. A "cesión de derechos" is not ownership. Before any money moves, the notary pulls title history and the lien certificate.
Budget about 5 to 8% on top of the price
In Mexico the buyer usually pays closing costs; the seller pays capital-gains tax and commissions. Everything is negotiable.
Worked example Approximate
Resale condo, US$350,000, cash, bank trust:
- Acquisition tax at about 3%: around $10,500
- Notary and registry: $4,000 to $6,500
- Trust setup: $2,000 to $3,000
- Appraisal, escrow, certificates: $1,500 to $2,500
Total roughly $18,000 to $22,500 (about 5 to 6.5%).
| Item | Typical amount (2026, approx.) |
|---|---|
| Acquisition tax (ISAI) | About 2 to 4.5% of price or appraisal, whichever is higher; plan on about 3% |
| Notary fees | About 0.5 to 1.5% plus 16% VAT |
| Public Registry and certificates | A few hundred to low thousands of US dollars |
| Appraisal (avalúo) | About US$300 to $800 |
| Bank trust setup and SRE permit | About US$1,500 to $3,500 |
| Escrow | About US$500 to $1,500, or 0.1 to 0.3% |
| Independent attorney (smart) | Often US$1,500 to $3,500 |
Ongoing: predial is often a few hundred US dollars a year for a condo; HOA roughly US$1.50 to $5 per m² per month; plan 1 to 2% of value a year for maintenance.
Where the numbers work
Playa and Cancun for liquidity. Tulum for higher risk and higher upside. Bacalar for the long game.
Playa del Carmen
Rentals that work in high and low season; buy the best location you can afford.
Market page →Tulum
Strong luxury niche, heavy pre-construction supply. Long horizon, strict diligence.
Market page →Cancun
A real city with year-round demand, the best services and more space for the money.
Market page →Bacalar
Small, seasonal rental market; land diligence is critical.
Market page →Send me the listing. I'll tell you what I'd check.
Comparable prices, real rental data, the developer's delivery record and the questions to ask. Free, and no obligation.