The real closing costs of buying a lot in Mexico
On top of the price, budget roughly [[6 to 8 %]] in closing costs as a foreign buyer using a bank trust, or [[4 to 5 %]] as a Mexican buyer. Below is every line item, who pays it, and a worked example in pesos and dollars.
What closing costs cover in Mexico
There is no title company and no title insurance policy as a standard line item. In Mexico almost everything runs through the notario: the acquisition tax paid to the municipality, the notary's own fee, the appraisal, the lien and tax certificates, and recording the deed at the Public Registry. The notary gives you a single statement with the full breakdown before you sign, a bit like a closing disclosure.
The sale of land is exempt from Mexican VAT (IVA), but the notary's and appraiser's fees carry it. If you buy through a bank trust (fideicomiso), add the bank's setup fee and the permit from the Ministry of Foreign Affairs (SRE).
| Item | Typical amount | Who pays |
|---|---|---|
| Acquisition tax (ISAI) | 2 to 3 % of the highest of price, appraisal or assessed value | Buyer |
| Notary fees (plus VAT) | 1 to 1.5 % of the price | Buyer |
| Appraisal (avalúo) | 0.2 to 0.3 % of value, MXN 6,000 minimum | Buyer |
| Certificate of no liens (libertad de gravamen) | MXN 1,000 to 2,500 | Buyer (ordered by the notary) |
| Proof that property tax and water are paid up | MXN 500 to 1,500 | Seller, by custom |
| Recording at the Public Registry | 0.5 to 1 % of value | Buyer |
| Bank trust setup (foreigners only) | USD 1,500 to 2,500 | Buyer |
| SRE permit (foreigners only) | MXN 2,000 to 3,000 in government fees | Buyer |
| Court-certified interpreter at signing | MXN 4,000 to 8,000 | Buyer who does not speak Spanish |
| Club letter showing HOA dues are paid | free or up to MXN 1,000 | Seller |
| Reservation deposit (apartado) | MXN 20,000 to 50,000, credited to the price | Buyer |
Acquisition tax and registry rates vary by municipality and are updated every year. Ask the notary for a written quote for your specific deal before you sign the promissory contract.
Worked example: a MXN 2,840,000 lot
Take a residential lot in a Quintana Roo country club priced at MXN 2,840,000 (about USD 158,000), paid in cash. We use mid-range rates to keep the example realistic. This is an estimate: your final figure comes from the notary.
| Item | Mexican buyer | Foreign buyer (bank trust) |
|---|---|---|
| Acquisition tax 2 % | MXN 56,800 | MXN 56,800 |
| Notary fees incl. VAT 1.2 % | MXN 34,080 | MXN 34,080 |
| Appraisal 0.25 % | MXN 7,100 | MXN 7,100 |
| Certificates | MXN 5,000 | MXN 5,000 |
| Public Registry 0.5 % | MXN 14,200 | MXN 14,200 |
| Bank trust setup USD 2,000 | N/A | MXN 36,000 |
| First annual trust fee USD 700 | N/A | MXN 12,600 |
| SRE permit | N/A | MXN 2,500 |
| Interpreter | N/A | MXN 6,000 |
| Estimated total | [[MXN 117,180, 4.1 % of price]] | [[MXN 174,280 (about USD 9,700), 6.1 % of price]] |
Exchange rate used: MXN 18 per US dollar. If the appraisal comes in above the price, the acquisition tax is calculated on the appraisal and the total goes up.
Ongoing costs once you own the lot
Closing is a one-time cost; owning is a yearly one. The good news for buyers from the US and Canada is that the yearly numbers are usually much lower than at home, especially property tax.
- Property tax (predial): for a vacant lot in the Riviera Maya, expect roughly MXN 3,000 to 8,000 a year, far below a typical US or Canadian tax bill. Many municipalities offer a discount if you pay in January.
- HOA fee (cuota de mantenimiento): covers security, landscaping, lighting and roads. Budget MXN 2,000 to 4,500 a month per lot, payable even before you build. See the guide to HOA fees and club rules.
- Annual bank trust fee: foreign buyers only. The bank charges USD 500 to 1,000 a year to administer the fideicomiso.
- Water and power: a vacant lot usually has no usage, though some clubs charge a hookup or a minimum fee.
Who pays what: buyer vs. seller
Mexican custom is simple: the buyer pays to close and record the deed, and the seller pays for their own gain and for handing over a clean lot. Everything is negotiable, but whatever you agree must be written into the promissory contract.
| Buyer | Seller |
|---|---|
| Acquisition tax (ISAI) | Capital gains tax (ISR), withheld by the notary |
| Notary fees | Property tax and water paid up to the signing date |
| Appraisal | HOA dues paid up and a no-debt letter from the club |
| Public Registry recording | Releasing any mortgage or lien |
| Bank trust, SRE permit and interpreter | Their own real estate agent's commission, if any |
Unlike in the US, the seller's agent commission is not automatically split with a buyer's agent, and the buyer does not pay a share of it in the closing statement.
Buying from the developer is slightly different
When you buy a new lot directly from the developer, the deed is often not signed the day you pay the down payment. You sign a contract with the developer and close at the notary once the lot is paid off. Some developments sell through an assignment of rights inside a master trust, which can change both the costs and who pays them.
Also ask whether the developer charges a club membership or onboarding fee, a utility connection fee or a construction deposit. They are not taxes, but they come out of your pocket. The full sequence is in our step-by-step closing guide.
How to avoid surprises
- Get a written estimate from the notary, based on your real price, before the reservation deposit becomes non-refundable.
- Close at the real price. Under-declaring lowers the acquisition tax today but raises your capital gains tax when you sell, and it can be challenged.
- Confirm in writing whether the reservation deposit is refundable, in which cases, and that it is credited to the price.
- Ask for the club's HOA statement and the property tax receipt before signing day, not on it.
- Compare at least two banks for the trust: you will pay the annual fee for many years.
- Keep an extra 1 % buffer for appraisal differences and exchange rate moves.
This guide is for orientation only. Rates change by municipality and year, so confirm your numbers with the notary and, for tax questions, with a Mexican accountant. Ongoing and resale taxes are covered in our property tax guide for foreigners.
Get an estimate for your lot
If you already have a lot in mind, we will send you an estimated closing cost breakdown, the current HOA fee and the contact of a notary who knows the development. We work in English, Spanish and French.
Get lot options and prices
We send you available lots and homes that fit your budget, with prices, HOA fees and plans. No obligation.
How to buy in a Mexican country club
What to know before you reserve a lot: the bank trust (fideicomiso) for foreigners, closing costs, HOA fees and the questions to ask the developer.
- The bank trust, step by step
- Real purchase and closing costs
- Checklist before you sign
Frequently asked questions
How much are closing costs in Mexico for a foreigner?
As a rule of thumb, 6 to 8 % of the price when you buy through a bank trust, and 4 to 5 % for a Mexican buyer. The exact figure depends on the municipality and the appraisal.
Does the buyer or the seller pay the acquisition tax?
The buyer. The seller pays capital gains tax on their profit, if any, and must bring property tax, water and HOA dues up to date.
Is there sales tax or VAT on a lot in Mexico?
No. The sale of land is exempt from VAT. The notary's and appraiser's fees do carry VAT.
Do I need title insurance in Mexico?
It is not standard and not legally required. Protection comes from the notary's due diligence and the lien certificate. Some buyers still purchase it for peace of mind, at roughly USD 1,000 to 2,000 for a lot.
How much does a fideicomiso cost per year?
Usually USD 500 to 1,000 a year depending on the bank. See our fideicomiso guide.
Keep reading
- Closing processHow closing works in Mexico: deposit, promissory contract, due diligence, notario, bank trust, signing and recording. Timelines and buying remotely.
- Bank trust (fideicomiso)How a Mexican bank trust works for foreign buyers: the parties, 50-year term, inheritance, setup and annual fees, timeline, SRE permit and selling.
- Property taxesThe taxes you pay to buy, own, rent out and sell a lot in Mexico: acquisition tax, predial, rental taxes and capital gains, explained for foreign buyers.
- Residential lots in Mexican country clubsGolf community lots in the Riviera Maya, Mexico. Prices, plans, developer financing and step-by-step help for foreign buyers.