Additional Costs When Buying Property in Mexico

Planning to buy a property in Mexico? Before making a decision, it is essential to understand all costs beyond the list price. A complete budget will prevent surprises at closing.

Appraisal

An appraisal determines the commercial value of a property, carried out by a certified appraiser. The approximate cost is 2.5 to 3.5 pesos per thousand pesos of property value. For a $2,000,000 MXN property, the appraisal costs approximately $5,000 to $7,000 MXN.

Notarial and Deed Transfer Costs

Notarial expenses include the deed transfer (legal title change), property registration, and acquisition taxes. In total they represent between 6% and 13% of the property value, depending on the state.

Deed transfer. Between 4% and 7% of total property value (varies by state).

ISABI (Property Acquisition Tax). Between 2% and 6% of property value (varies by state).

Property registration. Between $1,700 and $17,500 MXN depending on the state.

Loan Origination Fee

When obtaining a mortgage, a one-time origination fee is charged to cover credit investigation, property evaluation, and loan processing costs. At Flat.mx, this fee ranges from 2% to 3% of the loan amount, depending on the zone where the property is located.

Cost Summary

Appraisal. 2.5 to 3.5 per thousand pesos of property value.

Deed transfer. 4% to 7% of property value.

Property acquisition tax (ISABI). 2% to 6% of property value.

Origination fee (Flat.mx). 2% to 3% of loan amount depending on zone.