Closing Costs and Property Taxes in Mexico: What Buyers Really Pay

The price on the listing is not the whole story. Here is what buying and owning property in the Riviera Maya really costs, so you can budget with confidence.

Closing costs: plan for 5% to 8%

Closing costs in Mexico are mostly paid by the buyer. For a typical purchase in Playa del Carmen, Tulum or Cancún, they add up to roughly 5% to 8% of the purchase price. The main items are:

Acquisition tax (ISAI)

The property acquisition tax (Impuesto Sobre Adquisición de Inmuebles) is set by each municipality and is calculated on the higher of the price and the appraised value. In the Riviera Maya it is often around 2% to 3%. It is the largest single closing cost.

Notary fees

The notary public formalises the deed, checks the documents and calculates the taxes. Fees depend on the price and the notary, and usually include the public registry fees.

Appraisal

An official appraisal (avalúo) is required to calculate the taxes. It is a modest, fixed-type cost.

Fideicomiso set-up

Foreign buyers on the coast pay the bank's trust opening fee and the Foreign Affairs permit. See how the fideicomiso works.

Other items

Certificates of no liens and no debts, translation if needed, and a power of attorney if you sign remotely.

Tip: Ask your notary for a written closing-cost estimate before you sign the purchase agreement. We request one for every client.

Annual costs of owning

Property tax (predial)

Mexico's annual property tax is very low compared with the US or Canada. For many condos in the Riviera Maya it amounts to a few hundred US dollars a year, and several municipalities offer a discount for paying early in the year.

HOA / maintenance fees

Condominiums charge a monthly maintenance fee (cuota de mantenimiento) for security, cleaning, pools, gardens and reserves. Buildings with many amenities cost more. Always ask for the current fee and the building's financial statements.

Fideicomiso annual fee

Your bank charges a yearly trust administration fee.

Utilities and insurance

Electricity (CFE) is the main variable, especially with air conditioning. Insurance against hurricanes and other risks is strongly recommended.

Taxes if you rent your property

Rental income earned in Mexico is taxable in Mexico. For short-term rentals, platforms such as Airbnb and Booking withhold part of the income tax and VAT automatically when you provide your tax details, and Quintana Roo applies a lodging tax. Long-term rentals have their own regime. An accountant can register you and file the returns, and you may also need to report the income in your home country.

Capital gains tax when you sell

When you sell, capital gains tax (ISR) is withheld by the notary. For non-residents the law offers two options: a tax on the gross sale price, or a higher rate on the net gain if you appoint a legal representative in Mexico. The second is usually cheaper when you keep invoices for improvements and closing costs. Mexican tax residents may be exempt on the sale of their primary residence, subject to conditions.

Keep every invoice (factura) from the purchase and any improvements: they reduce your taxable gain.

Example budget

For a condo priced at 3,000,000 MXN, a buyer might plan:

• Closing costs at around 6%: ≈ 180,000 MXN
• Annual property tax: a few thousand pesos
• Maintenance: depends on the building, often a few thousand pesos per month
• Trust fee: annual bank fee

The figures vary by municipality, building and bank. We prepare a personalised estimate for each property.

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General information, not tax advice. Tax rules change; confirm your situation with a Mexican accountant.

See current condos for sale or read our guide for foreign buyers.