Closing costs in Mexico run higher than most American and Canadian buyers expect, and the biggest single line, the acquisition tax (ISAI), depends on the municipality. Under each municipality’s 2026 law it runs from 2% in Bahía de Banderas (Sayulita, Punta Mita)[Ley de Ingresos del Municipio de Bahía de Banderas 2026, Art. 21 (ISAI 2%), 2026-10] to about 6% in Querétaro[Ley de Ingresos del Municipio de Querétaro 2026, Art. 15.7 (traslado de dominio table), 2026-10] and Mexico City[Código Fiscal de la Ciudad de México, Art. 113 (ISAI table, Gaceta Oficial 19-12-2025), 2026-10] on a $400,000 USD purchase. Right behind it sits the notario público’s fee. Mexican notarios are state-licensed public officers running the transaction itself, not the stamp-and-witness clerks the word might suggest in the US.[Colegio Nacional del Notariado Mexicano, role of the notario público, 2026-04]
This page breaks every line item out, and the calculator below runs the math for your purchase price and municipality. Use the calculator for your budget number; use the line-item explanations to understand what you’re being charged for and where the variance hides.
The full line-item breakdown
Mexican closing costs decompose into seven recurring lines. Two are taxes (ISAI and trust-related federal fees). Three are professional fees (notario, trustee setup, certificates and registrations). Two are smaller administrative items (appraisal, public-registry inscription).
ISAI, the municipal acquisition tax
The Impuesto Sobre Adquisición de Inmuebles is the transfer tax the buyer pays at closing. Each municipality sets it, and several use a progressive table (a fixed amount plus a marginal rate on the excess), so the effective rate depends on the price. The table is computed from each municipality’s 2026 law:
| Municipality | Rule | Effective | Source |
|---|---|---|---|
| Tulum, Quintana Roo Tulum | 4% of the property value | 4.00% | Ley de Hacienda del Municipio de Tulum, Art. 50 (reformed POE 09-12-2024) |
| Playa del Carmen (Solidaridad), Quintana Roo Playa del Carmen, Playacar | 4% of the property value, up from 3% in December 2025 | 4.00% | Ley de Hacienda del Municipio de Playa del Carmen, Art. 23 Quinquies (Decreto 167, POE 10-12-2025) |
| Cancún (Benito Juárez), Quintana Roo Cancún | 3% of the property value, plus a 10% municipal surcharge on the tax (3.3% in all) | 3.30% | Ley de Hacienda del Municipio de Benito Juárez, Arts. 27 and 58 |
| Los Cabos, Baja California Sur Cabo San Lucas, San José del Cabo | 3% of the property value after deducting five times the annual UMA (about MXN 214,000) | 2.91% | Ley de Hacienda para el Municipio de Los Cabos, Art. 35 |
| La Paz, Baja California Sur La Paz | 3% of the property value, up from 2% on January 1, 2026 | 3.00% | Ley de Hacienda para el Municipio de La Paz, Art. 38 (Decreto 3263, BOGE 24-12-2025) |
| Bahía de Banderas, Nayarit Nuevo Vallarta, Bucerías, Sayulita, Punta Mita | 2% of the property value | 2.00% | Ley de Ingresos del Municipio de Bahía de Banderas 2026, Art. 21 |
| Puerto Vallarta, Jalisco Puerto Vallarta | A progressive table with marginal rates from 2.65% to 3.55% | 3.03% | Ley de Ingresos del Municipio de Puerto Vallarta 2026, Art. 41 |
| Guadalajara, Jalisco Guadalajara | A progressive table with marginal rates from 2.5% to 3.5% | 3.09% | Ley de Ingresos del Municipio de Guadalajara 2026, Art. 28, Tabla 1 |
| San Miguel de Allende, Guanajuato San Miguel de Allende | A progressive table that reaches a 4% marginal rate above MXN 1.5 million, after deducting ten times the annual UMA (about MXN 428,000) | 3.49% | Ley de Ingresos para el Municipio de San Miguel de Allende 2026, Art. 7 (table); Ley Hacendaria Municipal para el Estado de Guanajuato, Art. 338 (deduction) |
| Mérida, Yucatán Mérida | A progressive table with marginal rates from 2.5% to 5% | 3.99% | Ley de Hacienda del Municipio de Mérida, Art. 60 |
| Querétaro (municipality), Querétaro Querétaro city | A progressive table with marginal rates from about 2.8% to 6.9% | 5.99% | Ley de Ingresos del Municipio de Querétaro 2026, Arts. 15.7 and 15.8 |
| Mexico City (CDMX), Mexico City Roma Norte, Condesa, Polanco, Coyoacán | A progressive table with marginal factors from 1.4% to 9% | 5.83% | Código Fiscal de la Ciudad de México, Art. 113 (Gaceta Oficial No. 1762, 19-12-2025) |
Cancún adds a 10% municipal surcharge on the tax itself, which takes its 3% to 3.3%.[Ley de Hacienda del Municipio de Benito Juárez, Arts. 27 and 58 (3% ISAI plus a 10% surcharge on municipal taxes), 2026-10]
In every law in the table, the base is the highest of the agreed price, the cadastral value and a commercial appraisal, so a low recorded price does not lower the tax.[Ley de Hacienda del Municipio de Mérida, Arts. 58 and 60 (ISAI base and table), 2026-10]
The notario calculates ISAI, collects it from the buyer at closing and pays it to the municipality; the buyer never pays the treasury directly.
Notario fees
Mexican notarios públicos are public officers, not solo private practitioners. Appointed by the state, they hold a numbered office (notaría number).[Colegio Nacional del Notariado Mexicano, role of the notario público, 2026-04] The notary quotes the fee per deal; get it in writing before you sign the promise-to-buy, and expect a fideicomiso purchase to cost more than a direct-title one because the trust deed adds work. The worked example below assumes 1.8% of the price.
The notario fee is bundled with several smaller administrative charges (notary’s office certificates, document preparation, signature certifications) that historically appear as separate sub-lines but should be treated as one functional cost.
Fideicomiso (trust) setup and trustee fees
Foreign buyers acquiring property in the restricted zone — within 50km of the coast or 100km of the border — hold title through a fideicomiso, a renewable 50-year bank trust authorized by the Mexican Foreign Investment Law.[Ley de Inversión Extranjera, foreign-buyer trust mechanism, 2026-04] The trust adds two costs to closing:
- One-time trustee bank setup fee: set by each bank and quoted by region; get a written quote[BBVA México, Fideicomiso de Zona Restringida (trust fees quoted by region through an advisor), 2026-09]
- Federal SRE permit fee (Secretaría de Relaciones Exteriores): MXN 21,648.83 for the SRE permit plus a MXN 596.29 application review fee in 2026[Ley Federal de Derechos, Art. 25, fracciones III and V(a), amounts updated by Resolución Miscelánea Fiscal DOF 28-12-2025, 2025-12]
Annual trustee fees, set by the bank, begin in year two and continue for the life of the trust. These are an ongoing carry, not a closing cost, but they should be in the holding-cost analysis.
Public registry, appraisal, and certificates
Three smaller items round out the closing statement. The amounts below are planning allowances, not published fees; your notary’s quote replaces them.
The public registry inscription (inscripción al Registro Público de la Propiedad) records the deed against the property and is the act that legally transfers title. State-set fee, typically $300 USD–$1,200 USD.
The bank-required appraisal (avalúo) is performed by a credentialed valuador, $300 USD–$800 USD. Required by the trustee bank on fideicomiso transactions; not strictly required by law on direct-title but typically obtained.
Certificates of no-lien (certificado de libertad de gravámenes), water service, and HOA dues round out the package — small individually, collectively $300 USD–$600 USD.
What’s not in the closing statement (and should be in your budget)
Three costs commonly catch foreign buyers off guard.
Currency cost. Moving USD or CAD to MXN through a retail bank wire typically costs 1.5-3% on the spread alone, before any wire fees.[BANXICO, FIX rate methodology and retail-bank spread analysis, 2026-04] On a $400,000 USD purchase, that’s $6,000 USD–$12,000 USD in pure FX cost — larger than many of the closing-statement line items. See our wire-money-to-Mexico guide for the institutional alternatives.
Buyer’s attorney. Mexican notarios don’t represent the buyer or the seller — they represent the transaction. Foreign buyers on transactions above $300,000 USD or on any commercial property should engage their own Mexican real-estate attorney to review the deed, the chain of title, and the trust agreement before signing. Plan on $1,500 USD–$4,000 USD (a planning allowance; ask for a written quote).
Title insurance. Title insurance is not a Mexican standard product — Mexican title is established through public-registry inscription rather than insurance — but US-based title insurers (First American, Stewart) write Mexico-property policies for buyers who want them. Premium typically 0.5-0.7% of purchase price.[First American Title, Mexico property title insurance overview, 2026-04]
A Canadian buyer purchases a $400,000 USD condo in Tulum through a Bancomer fideicomiso. Closing statement and out-of-statement costs (modeled: the bank, notario, and service fees are assumed quotes, and peso amounts convert at an assumed 18.5 MXN per USD):
- ISAI (Tulum, 4%): $16,000 USD
- Notario fee (fideicomiso transaction, ~1.8%): $7,200 USD
- Fideicomiso setup (Bancomer, assumed quote): $1,200 USD
- SRE permit and review fee (MXN 22,245.12): $1,202 USD
- Public registry inscription: $800 USD
- Appraisal: $450 USD
- Certificates and miscellaneous: $500 USD
- Closing statement subtotal: $27,352 USD (about 6.8%)
Out-of-statement:
- Currency cost (CAD to MXN at retail-bank spread, ~2%): $8,000 USD
- Buyer’s attorney (independent review): $2,500 USD
- Title insurance (optional, 0.5%): $2,000 USD
- Out-of-statement subtotal: $12,500 USD (about 3.1%)
All-in: $39,852 USD on a $400,000 USD purchase, roughly 10.0%.
A buyer who wires through a cross-border FX provider rather than a retail bank reduces currency cost substantially. A buyer who skips the optional attorney and title insurance brings total closer to 8.8%, with the closing-statement line items unchanged.
How municipalities compare on ISAI
ISAI is the largest variable line. On a $400,000 USD purchase, the table above runs from $8,000 USD in Bahía de Banderas to about $24,000 USD in Querétaro: a 4-point swing worth about $16,000 USD. The inland cities with progressive tables (Mexico City and Querétaro near 6%) cost more in acquisition tax than any coastal market in the table, which partly offsets the fideicomiso the coast requires.
That swing is real money, but where you want to live or rent should drive the choice, not ISAI.
Closing-cost calculator
The calculator below runs the math for any listed municipality and purchase price. Inputs default to a Tulum fideicomiso purchase.
ISAI comes from each municipality’s 2026 law, the same table as above. The notary, bank and service amounts are placeholders you replace with written quotes. The methodology page explains how we review figures.
What a typical closing timeline looks like
For foreign buyers, the time from accepted offer to recorded deed depends most on these line items:
- Trustee bank trust setup (3-6 weeks)
- SRE permit (4-8 weeks, runs in parallel with trust setup)
- Notario document preparation and certificate gathering (2-4 weeks)[AMPI, foreign-buyer transaction timeline guidance, 2026-04]
A buyer wiring funds from outside Mexico should plan to have the funds in a Mexican peso account or in escrow at least 5-7 business days before signing. International wires through retail banks can take 3-5 business days to settle and the notario won’t sign without confirmed funds. See the wire-money-to-Mexico page for timing and reporting mechanics on the funds-transfer side.
For reads on municipal rate changes that affect ISAI, notario practice, and fideicomiso costs, the /newsletter covers what’s worth tracking.
Where buyers commonly miscalculate
Three patterns repeat:
Using a US-style “1-3% closing cost” mental model. US closing costs are buyer-low and seller-high; Mexican closing costs are buyer-high. A US buyer who budgets 2% for closing on the $400,000 USD Tulum example above is short by about $19,000 USD on the closing statement alone.
Treating fideicomiso setup as a one-time cost. The setup fee is one-time, but the annual trustee fee is recurring for the life of the trust. Over a 50-year term, cumulative trustee fees become a real holding cost, before the renewable extension at year 50. This is a holding cost, not a closing cost, but it should be modeled into long-term carry.
Forgetting the FX spread. Buyers who solve carefully for ISAI and notario fees but wire through their retail bank often spend more on currency cost than on any individual closing-statement line item. The closing statement looks clean; the FX is hidden in the spread on the wire.
What you don’t pay (in case you’re wondering)
US buyers often ask about a Mexican capital gains tax at purchase — there isn’t one. The seller pays capital-gains tax (ISR — Impuesto Sobre la Renta) on their gain, but that obligation is the seller’s, not the buyer’s.[Mexico SAT, ISR on real-estate transactions, seller liability, 2026-04] Buyers also don’t pay a Mexican equivalent of US documentary stamp tax or Canadian property transfer tax above ISAI — ISAI is the single transfer tax.
There is no buyer’s equivalent of US settlement charges, lender’s title insurance, or escrow company fees, because the Mexican closing model uses notario público officers rather than escrow agents. The escrow function is performed (when used) either by the notario’s office or by a US-based escrow company under separate engagement, typically $500 USD–$1,500 USD when chosen.
Disclaimer
This article is for informational purposes only and does not constitute legal advice. Mexican real estate transactions involve federal civil code, state-level rules, and notary practice that varies by jurisdiction. Engage a Mexican notario público and, for transactions above $300,000 USD or commercial property, a Mexican real estate attorney before signing.
Current as of 2026-05-03. We review legal content quarterly and update on rule changes. To report an error, contact us.