Building a Home in Vallarta · Nayarit: Details to Consider – Part II

By Jorge Chávez
Jul. 21, 2023

The process of building a new home begins long before the foundation is poured. “The construction is most efficient and exciting if you first develop a good plan and find an honest, competent builder,” said Alan Martínez, an independent real estate agent, who kindly shared with Vallarta Real Estate Guide some valuable tips for constructing a home in the Banderas Bay region.

“As you move from dream house to real house, be sure to ask questions and share your progress with people who have gone through the process,” he added.

Both Puerto Vallarta and Riviera Nayarit offer several advantages, including its natural beauty and significantly lower cost of living compared to the United States and Canada. These factors contribute to the appeal of building in this destination.


Self-builders are advised to request estimates from the construction company before initiating any work. It is encouraged to ask thorough and challenging questions to ensure clarity and understanding between the individual and the contractor. “While price is a factor, it is essential not to solely focus on the least expensive bid. It is preferable to select a reputable firm with an experienced crew that guarantees exceptional workmanship and uses high-quality materials. It is also important to establish a realistic timeline for project completion.”

Building a Home in Vallarta · Nayarit


When undertaking additions or renovations to an existing structure, it is crucial to capture a comprehensive collection of photographs beforehand. “These visual records can prove invaluable when calculating capital gains in the future.”


Similar to anywhere in the world, foreign self-builders must be cautious to avoid unintentional mistakes that can lead to significant consequences. “In order to safeguard their interests, it is imperative to document all contractual agreements in writing. Clear and comprehensive terms should be outlined and agreed upon by all parties involved, with each signing the contract and retaining a copy. It is advisable to involve two or more individuals in reviewing the documents to prevent any misinterpretation of terms or oversight of critical details, one of whom should be a qualified lawyer.”


Before starting any physical construction or groundbreaking, it is essential to ensure that all necessary building permits are obtained. “Self-builders can seek assistance from their project manager and/or a lawyer to facilitate this process and ensure compliance.”

Building a Home in Vallarta · Nayarit


Self-builders should diligently maintain a record of all invoices as they will be required for property manifestation upon completion of the construction and for calculating capital gains if the decision to sell arises. Our expert adds: “It is important to note that Mexican tax authorities only recognize official CFDI receipts (commonly known as factura) as valid expenses, whereas informal or hastily recorded transactions may not be considered acceptable.”

“In addition, self-builders should ensure that their contractor or project manager fulfills their obligation of paying laborers their social security (IMSS). Failure to comply with this requirement may lead to the self-builder assuming responsibility for these payments in the future.”


While the contractor bears responsibility for the assigned tasks, self-builders should maintain an active presence and remain informed about the progress of their project. Regular site visits are recommended to ensure the smooth execution of the work. “If any concerns or issues arise, it is advisable to address them with the supervisor or project manager rather than intervening directly with the workers.”


Ultimately, embarking on a building project is about making your dreams come true. “It is important to approach this project with enthusiasm and to enjoy it. Although it can be stressful at times, building and owning a property in Mexico is a once-in-a-lifetime experience,” concludes Martínez.