Purchasing a home in Mexico is an exciting step, whether you’re looking for a vacation getaway, retirement residence, or investment property. But beyond the purchase price, buyers—especially U.S. and foreign citizens—should be prepared for the closing costs that come with completing the transaction. Understanding these expenses upfront helps you plan your budget and avoid surprises at the notary’s office.
What Are Closing Costs in Mexico?
Closing costs are the fees and taxes paid at the time of transferring property ownership. They are usually paid by the buyer and can range between 4% to 8% of the property’s purchase price, depending on the location, value, and type of property.
Typical Expenses to Expect
Acquisition Tax (Impuesto sobre Adquisición de Inmuebles)
This is a government transfer tax that ranges from 2% to 4.5% of the property value, depending on the municipality.
Notary Public Fees
All real estate transactions in Mexico must be formalized before a Notary Public. Notary fees generally account for 0.5% to 1.5% of the property’s value.
Registration Fees
These cover the cost of registering your property with the Public Registry of Property. They are usually around 0.25% to 0.5% of the property’s value.
Appraisal (Avalúo)
An official property appraisal is required for tax and legal purposes. Expect to pay between $300 to $500 USD, depending on property size and location.
Bank Trust (Fideicomiso) Fees (for foreign buyers)
If you are a U.S. or foreign citizen buying in the Restricted Zone, you’ll need a fideicomiso. Setup fees are usually around $1,000 – $2,000 USD, with annual maintenance fees of $500 – $800 USD.
Other Costs
Miscellaneous charges may include permits, certificates, and translation services if documents are required in English.
Key Takeaway
Closing costs in Mexico are an essential part of the buying process and should always be factored into your investment. While they may vary slightly by region, planning for 4% to 8% of the property price will help you set realistic expectations. Working with trusted professionals—including your lender, notary, and real estate advisor—ensures a smooth and transparent transaction.
