Closing Costs

If you´re buying real estate in Mexico you have the obligation of paying closing costs during the closing of your real estate transaction. These closing costs are divided in multiple parts which are listed below.

Notary Public

The Mexican notary public has a completely different role from the one in the United States. In Mexico a notary public is an appointed official of the government, unlike in the U.S. or in Canada where their only obligation is to witness the execution of a document. Here they are responsible for formalizing the legal act through a deed, which will contain thr transfer of title through a purchase agreement or a trust. They calculate, retain and pay taxes on behalf of buyer and seller

You have to involve the notary public during your real estate transaction, and he has a schedule of fees that is authorized by the government.

Transfer of Property Tax

You as a buyer have the obligation of paying taxes and a certain amount of duties. On the date of closing when the transfer of title occurs the buyer must pay transfer of property tax. In the Playa del Carmen region it is 2% of the purchase price, whereas in the area of Cancun it increases to 2.2%.

Buyers need to pay a commercial appraisal because the Mexican government likes to cross-reference information. Because the payment of taxes are calculated based on the highest of 3 factors- the purchase price, the commercial appraisal and the assessed value, the value that is appointed by the government. So based on those 3 factors the government will calculate all those taxes that the buyer needs to pay.

The closing costs will include certain amount of certifications that are required by the government to record the deed, including some that describe or indicate: the current status of the company regarding payment of taxes water and sewage, if the property is beachfront, and that the property is current with the taxes regarding federal maritime zone, among others.

Trustee Bank

If you are a foreigner you cannot aquire land directly, so you need to engage a trustee bank. which will require a certain amount of fees as well. They are for:

#1: A permit issued by the Ministry of Foreign affairs. The trustee bank will include their annual fees and another fee which they call an acceptance fee, through the bank will accept to be your trustee bank.

#2: Escrow and legal fees. You paying your escrow and the closing legal support so that we can guide the customer from beginning to end until the transaction closes.

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