Your Ultimate Guide to Buying Puerto Escondido Real Estate

July 19, 2023

The Puerto Escondido real estate market is currently experiencing a significant boom as expatriates are flocking to the breathtaking Oaxacan coast. With the demand for homes and properties skyrocketing, it is crucial for potential buyers to be well-informed before embarking on their journey to purchase their dream home or land in Mexico. In this comprehensive guide, we will provide you with essential information to help you navigate the Puerto Escondido real estate market successfully.

Puerto Escondido Real Estate – What You Need to Know

The Puerto Escondido real estate market is booming, driven by the increasing number of expatriates who are relocating to the stunning Oaxacan coast. As we move into 2023, the demand for homes and properties remains high, resulting in a decrease in available listings. If you’re considering living in this paradise, it is vital to familiarize yourself with all the necessary information before purchasing your dream home or land in Mexico.

Where to Buy Puerto Escondido Real Estate

Before diving into the Puerto Escondido real estate market, it’s essential to educate yourself about the different areas within Puerto Escondido. While the downtown area is highly sought after, properties in this area can be challenging to find at reasonable prices. The demand for Puerto Escondido real estate is expanding on all sides of the coast, making areas like Playa Palmarito in the Northwest and La Barra in the southeast attractive options to explore.

Important Considerations Before Buying Puerto Escondido Real Estate

Before rushing into signing a contract for a property, it’s crucial to be aware of certain factors. If an offer seems too good to be true, it probably is. One potential concern when purchasing land in Puerto Escondido is Ejido land. Ejido land refers to land granted to communities, often indigenous, and is typically located on the waterfront. Acquiring Ejido land requires the unanimous consent of the community to separate and convert the land into freehold. The process is challenging and often leads to illegal activities, putting the ownership of the land at risk. While there are legal firms that can help convert Ejido land, it is generally recommended to avoid purchasing Ejido land.

Another consideration is the restricted zone near the coast/water, known as the “zona restringida.” Foreigners are generally prohibited from owning land within 50 kilometers of the water or 100 kilometers from an international border. However, a workaround exists called fideicomiso, which allows non-citizens to own property in this restricted zone. With a fideicomiso, a bank acts as a trustee, and the buyer becomes the beneficiary, having full control over the property. Fideicomisos need to be renewed every 50 years but can be passed on to family members.

Appointing a reliable notary is crucial during the purchasing process. The notary, appointed by the state governor, should have at least five years of experience as an attorney. The notary plays a vital role as your representative, ensuring all paperwork is prepared correctly, recording the new title, and collecting taxes and fees. It’s essential to ensure effective communication with the notary, as they will guide you through the entire process.

The Puerto Escondido Real Estate Purchasing Process

The majority of the purchasing process will be handled by your notary. However, it’s important to understand the contracts and, if necessary, have them translated. The Spanish version of the contract is the binding document.

The process starts with making an offer, typically a verbal offer through the seller or real estate agent. Once the offer is accepted, the next step is signing the sales contract, which outlines the purchase price and any additional conditions. A deposit, usually around 5-10% of the total sale price, is then paid to secure the property.

If a fideicomiso is required, this is initiated at this stage. If the previous owner already has a fideicomiso, it can be transferred to the buyer. However, it’s important to note that the 50-year timeline of the fideicomiso does not restart upon transfer.

Obtaining permission from the foreign secretary’s office is necessary to ensure that all dealings are governed by Mexican property law, and foreign legal jurisdiction cannot be sought. An avalúo (valuation) is conducted for tax purposes, and the final step is signing the escritura (title deed) and making the closing payment. After completing the payment, fees, and taxes, the notary will initiate the property registration, which can take up to three months to finalize.

Closing costs, including the notary fee (approximately 1.5%), transfer tax fee (around 2%), fideicomiso setup fees, and annual fideicomiso maintenance fees (around 5,000 pesos per year), should be considered as part of the overall expenses.

Top Real Estate Companies in Puerto Escondido

To assist you in finding your dream land or property in Puerto Escondido, several reputable real estate companies can provide expert guidance. Some notable options include Vivo Resorts,, and These companies have in-depth knowledge of the Puerto Escondido real estate market and can help you navigate the available listings.

Puerto Escondido Real Estate Summary

The Puerto Escondido real estate market has experienced a significant influx of expatriates in recent years, and the demand for homes and properties remains high as we move into 2023. To fully enjoy the experience of living in this gorgeous Oaxacan destination, it is crucial to educate yourself about the different areas around Puerto Escondido. By understanding the information provided in this guide, you will be equipped to make informed decisions and seize the opportunity to live in paradise.