13 May 2008 49 views No Comment

When considering real estate in Mexico, it would be helpful to know what fees to expect to get a better idea of the actual cost of the property. A more detailed explanation of fees can be found at the Global Property Guide. The following figures were good as of Apr 20, 2007, but should help you come to a good estimation of what you would expect to pay.

Acquisition Tax 0.18% -4.565%

This is a tax on the acquisition of immovable property and is a progressive tax based on the value of the property.

Hiring a Public Notary 0.08% -3.6%

It is required to have a Public Notary to make sure all paperwork is in order and all laws have been followed. The fees are regulated by the government, so you can find out the exact fee by looking up the fee schedule for that area.

Registration Fee .02% -1.82%

This is paid to the Local Public Registration Office and varies by state. It can be a fixed, progressive, or fixed and progressive.

Other Fees 0.50% -1.00%

Setting up a bank trust (fideicomiso) which is required when purchasing property within 100 Km from the border, or 50 Km from the coast, costs between US$450-$1000, with a yearly maintenance fee of approximately the same amount. A permit is required from the Mexican foreign affairs office is around US$1,100. An independent Spanish speaking lawyer is also recommended to review the contract.

Title Insurance 0.50% -0.70%

Title insurance is highly recommended and available through US providers. Ejido land, which is owned by the government and set aside for farmers can not be sold, but that doesn’t stop scammers from offering it for sale. Insurance will protect you against a bad title.

Down Payment 5%-10%

When the buyer and seller agree to a transaction, a down payment of roughly 5-10% is typically expected.

Total transaction fees for real estate in Mexico are about 3.81% -11.6%, not including the down payment.