Can You Run a Retreat Business from Your Mexican Property?
5 Minute Insights | Published October 28, 2025 | By Selva A.
At a Glance
What You'll Learn: The legal requirements, zoning considerations, and practical steps for hosting wellness retreats on property in Mexico's Bajío region, including permits needed, HOA restrictions to check, tax implications, and business structure options for foreign retreat leaders.
Best For: Wellness entrepreneurs, yoga teachers, healers, and conscious business owners planning to host transformational experiences at their Mexican property.
Read Time: 5 Minutes
You've envisioned it clearly: guests arriving at your Bajío property for week-long wellness retreats, practicing yoga as the sun rises over the mountains, gathering for plant-based meals made with local ingredients, and leaving transformed. The land feels perfect. The vision is powerful. But can you actually do this legally in Mexico?
The answer is nuanced—yes, but with important requirements and restrictions that vary significantly based on location, property type, and how you structure your business. Many retreat leaders successfully host groups at their Mexican properties, while others face unexpected obstacles from HOA rules, zoning restrictions, or permit requirements they didn't anticipate.
Understanding the legal landscape before you purchase ensures your retreat vision becomes reality rather than remains a dream limited by restrictions you discovered too late.
Legal Structure: How Retreat Businesses Operate in Mexico
Running a retreat business from your Mexican property requires proper business structure and permits. You cannot simply own residential property and start hosting paying guests without addressing legal and tax requirements.
Foreign nationals hosting retreats in Mexico typically choose between three legal structures, each with different implications for taxes, liability, and operational flexibility.
Business Formation Options
Sole Proprietorship (Persona Física con Actividad Empresarial) - The simplest structure for small-scale retreat hosting. You operate as an individual with business activity, requiring an RFC (Mexican tax ID) and monthly tax filings. Best for retreat leaders hosting occasional small groups.
Mexican Corporation (Sociedad Anónima or S.A.) - A formal corporate structure offering liability protection and professional credibility. Requires more complex setup and accounting, but provides clearer separation between personal and business activities. Suitable for established retreat businesses with regular programming.
Foreign Corporation Operating in Mexico - Some retreat leaders maintain their U.S. or Canadian business entity while renting or leasing Mexican properties for retreat use. This approach has tax implications in both countries and requires careful structuring with cross-border accountants.
According to Mexico's Secretary of Economy, foreign business owners must work with a Mexican accountant familiar with hospitality and event hosting to ensure proper tax treatment and compliance.
Tourist visa holders cannot legally earn income in Mexico, including from retreat hosting. You'll need appropriate immigration status—typically temporary residency with permission to work, or permanent residency—to legally operate a business. Hosting "free" retreats while collecting payments through your foreign business creates gray areas that could result in immigration issues.
Zoning and Property Use Regulations
Not all properties can legally host retreat groups, regardless of how perfect the space seems. Zoning regulations and property classifications determine what activities are permitted on your land.
Residential vs. Commercial Zoning
Residential Zoning (Uso de Suelo Habitacional) - Most homes in the Bajío fall under residential zoning, which typically limits commercial activity. Hosting small groups occasionally may fall within residential use, but regular retreat operations often require commercial or mixed-use zoning.
Mixed-Use Zoning (Uso de Suelo Mixto) - Properties with mixed-use designation allow both residential living and commercial activities, making them ideal for retreat hosting. These properties may come with higher property taxes but provide legal clarity for business operations.
Rural or Agricultural Land - Properties on ejido or agricultural land may have restrictions on commercial use. Verify land classification and usage rights before purchasing if retreat hosting is your intention.
You can verify zoning through your municipal catastro (property registry office), which maintains records of land use classifications and permitted activities for each property.
The most retreat-friendly properties are those already operating as small hotels, bed and breakfasts, or event spaces. These properties have established commercial zoning, required permits already in place, and infrastructure designed for hosting groups. While they may cost more upfront, they eliminate months of permit applications and zoning variance requests.
HOA and Community Restrictions
Even if zoning permits retreat hosting, your HOA or community rules may not. Homeowners association restrictions often address commercial activity, guest limits, noise levels, and parking—all critical factors for retreat operations.
What to Verify Before Purchase
- Commercial Activity Clauses - Review HOA bylaws for explicit prohibitions on business operations, commercial signage, or frequent guest turnover that could classify your property as a business.
- Guest Limitations - Many communities limit the number of guests per property or require advance notification for groups exceeding certain sizes. A 10-person retreat might violate guest limits in some communities.
- Noise and Activity Restrictions - Morning meditation bells, outdoor yoga sessions with music, or group ceremonies may conflict with noise ordinances, particularly in communities with close neighbors.
- Parking and Vehicle Access - Retreat groups arriving together create parking demands. Communities with limited guest parking may not accommodate retreat logistics.
- Variance Procedures - Some HOAs allow commercial activity with board approval. Understand the variance process, associated fees, and whether approval is likely before purchasing.
In San Miguel de Allende and surrounding areas, some gated communities explicitly prohibit commercial use, while others—particularly those marketed to expats and creative professionals—take a more flexible approach. Always verify restrictions in writing before closing.
Permits and Licenses Required
Operating a retreat business legally requires specific permits at municipal and federal levels. Requirements vary by location, retreat size, and services offered.
Essential Permits for Retreat Hosting
- Municipal Business License (Licencia de Funcionamiento) - Required for any commercial operation, obtained through your local municipal government. Fees vary by municipality and business classification.
- Federal Tax Registration - Register your business activity with SAT (Servicio de Administración Tributaria) and obtain your RFC. This enables you to issue receipts and file taxes properly.
- Health and Safety Permits - If serving food, you'll need health department approval for your kitchen facilities. Swimming pools require safety certifications.
- Fire Safety Compliance - Properties hosting groups must meet fire safety standards, including proper exits, extinguishers, and emergency lighting.
- Signage Permits - If you plan exterior signs identifying your retreat space, most municipalities require signage permits, particularly in historic districts like San Miguel de Allende's Centro.
- Alcohol License - Serving alcohol to guests requires a separate license, which can be difficult to obtain in some municipalities.
The Mexico Tourism Board provides resources for hospitality businesses, though regulations are primarily enforced at state and municipal levels.
Practical Property Features for Retreat Hosting
Beyond legal requirements, certain property characteristics make retreat hosting practical and profitable. Consider these elements when evaluating potential retreat properties.
Feature | Why It Matters | What to Look For
|
|---|---|---|
Sleeping Capacity | Retreat profitability depends on group size | Minimum 4-5 bedrooms for viable retreat business; 8+ bedrooms for larger programs |
Gathering Spaces | Groups need spaces for yoga, workshops, meals | Large living area or dedicated studio; outdoor platform or covered terrace |
Kitchen Facilities | Meal preparation for groups requires proper equipment | Commercial or large residential kitchen; multiple refrigerators; outdoor cooking option |
Outdoor Areas | Nature connection is central to many retreats | Gardens, terraces, fire pit areas, walking paths, mountain or valley views |
Parking | Groups often arrive together | Space for 3-6 vehicles minimum; consider shuttle services as alternative |
Privacy | Retreat activities shouldn't disturb neighbors | Adequate distance from neighboring properties; sound buffers like walls or vegetation |
Comparing Business Models for Retreat Properties
Pros:
- Full control over programming and guest experience
- Keep all retreat revenue (minus operating costs)
- Build your own brand and community
- Flexibility in scheduling and retreat types
Cons:
- Requires residency and work authorization in Mexico
- Ongoing responsibilities for property management
- Must handle marketing, bookings, and logistics
- Limited income when not hosting retreats
Pros:
- Earn income without immigration work restrictions
- Multiple income streams from different retreat leaders
- Less personal involvement in operations
- Property maintained by various renters
Cons:
- Reduced revenue per retreat (rental fee vs. full retreat income)
- Wear and tear from multiple users
- Need strong rental agreements and damage deposits
- Competition from other retreat rental properties
Best Practices for Legal Retreat Operations
DO:
- Research thoroughly before purchasing - Verify zoning, HOA rules, and permit requirements while still in due diligence period, not after closing.
- Work with specialized professionals - Hire attorneys and accountants experienced with hospitality businesses and foreign business owners in Mexico.
- Start small and scale gradually - Begin with smaller gatherings or donation-based offerings while establishing permits and business structure.
DON'T:
- Assume residential property allows business use - Always verify permitted uses with municipal authorities and HOA before purchasing.
- Operate informally or "under the radar" - Unlicensed business operations risk fines, property issues, and immigration problems.
- Skip proper insurance coverage - Liability insurance for group hosting is essential; your residential property insurance likely excludes commercial activities.
How Retreat Property Regulations Work in the Bajío Region
The Bajío's wellness community has created a moderate regulatory environment where retreat hosting is possible—but not unregulated. San Miguel de Allende, as a UNESCO World Heritage site, has specific restrictions on commercial signage and property modifications that affect retreat spaces in historic districts.
Outside the centro histórico and in surrounding areas like Atotonilco, regulations are often less restrictive. Some properties in rural areas near San Miguel operate retreat spaces with greater flexibility, though they must still maintain proper business registration and tax compliance.
Querétaro and Guanajuato have their own municipal regulations, generally more straightforward than San Miguel's heritage district requirements. When evaluating properties for retreat hosting, consider not just the physical space but also the regulatory environment of the specific municipality and neighborhood.
Several successful retreat centers operate throughout the Bajío region, demonstrating that proper legal structure makes sustainable retreat businesses viable. Learning from established retreat operators—and potentially working with the attorneys and accountants they use—streamlines your own path to legal operation.
Common Questions About Running Retreats in Mexico
No. Tourist visas prohibit work and income generation in Mexico. Hosting paid retreats—even if payments go to your foreign business—constitutes work requiring appropriate residency status. You need temporary residency with work permission or permanent residency to legally operate a retreat business.
Initial setup including business formation, permits, and professional fees typically ranges from $3,000-8,000 USD depending on business structure complexity and municipality. Ongoing costs include monthly accounting ($150-400), annual business license renewal ($200-800), and tax obligations based on your revenue.
Yes. Standard homeowner's insurance excludes commercial activities and won't cover guest injuries or property damage during retreats. You'll need commercial general liability insurance and potentially professional liability coverage depending on services offered. Mexican insurance providers or international insurers with Mexico coverage can provide appropriate policies.
You have three options: negotiate a variance with the HOA board (possible but not guaranteed), purchase different property without restrictive covenants, or structure your retreat hosting as personal guests rather than commercial operations (limiting scale and creating legal gray areas). The cleanest solution is finding property without commercial restrictions from the start.
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Browse retreat-ready properties in the Bajío region, or schedule a consultation to discuss your specific retreat business plans and property requirements.