Understanding Closing Costs in Mexico
One of the most common questions from international buyers is: “How much will it cost beyond the purchase price?” This guide breaks down every cost you’ll encounter when buying property in Baja California Sur.
Complete Cost Breakdown
| Cost Item | Amount | When Paid |
|---|---|---|
| Acquisition Tax (ISABI) | ~2% of assessed value | At closing |
| Notary Fees | ~1–1.5% of property value | At closing |
| Fideicomiso Setup | $1,500–$2,500 USD | At closing (one-time) |
| SRE Permit | ~$90 USD | During process |
| Appraisal | $300–$800 USD | Before closing |
| Certificates (No-lien, tax clearance) | $200–$500 USD | Before closing |
| Title Insurance (optional) | 0.5–1% of property value | At closing |
| TOTAL | 4–6% of purchase price | Mostly at closing |
Ongoing Annual Costs
| Annual Cost | Amount |
|---|---|
| Fideicomiso maintenance | $500–$700 USD/year |
| Property tax (predial) | 0.1–0.3% of assessed value |
| HOA fees (if applicable) | $100–$500+ USD/month |
| Home insurance | $300–$1,500 USD/year |
Real Example: Closing Costs on a $500,000 Condo
Purchase price: $500,000 USD
ISABI tax (2%): $10,000 | Notary (1.2%): $6,000 | Fideicomiso: $2,000 | Appraisal: $500 | Certificates: $300
Total closing costs: ~$18,800 (3.76%)
Frequently Asked Questions
What are the closing costs when buying property in Mexico?
Total closing costs are typically 4–6% of the purchase price. This includes acquisition tax (ISABI) ~2%, notary fees ~1–1.5%, fideicomiso setup $1,500–$2,500, appraisal and certificates $500–$1,000.
How much does a fideicomiso cost?
Setup fee: $1,500–$2,500 USD (one-time). Annual maintenance: $500–$700 USD. The SRE (Foreign Affairs) permit costs approximately $90 USD.
Who pays closing costs in Mexico — buyer or seller?
In Mexico, the buyer typically pays all closing costs including acquisition tax, notary fees, and fideicomiso. The seller pays capital gains tax if applicable and their agent’s commission.
Is there property tax in Mexico?
Yes, but it’s very low compared to the US. Annual property tax (predial) in BCS is typically 0.1–0.3% of the assessed value, which is usually lower than market value.
Can I get a mortgage to buy property in Mexico?
Yes, though options are limited. Some Mexican banks offer mortgages to foreigners. US-based cross-border lenders like MXNOW and Global Mortgage also serve this market. Most BCS luxury buyers pay cash.
Get a Personalized Cost Estimate
Every property is different. With years of experience closing luxury transactions in BCS, Baja Sur Realtors provides detailed cost estimates tailored to your specific purchase.
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Updated May 2026.