Cost of Buying Property in Mexico: 2026 Closing Costs

The cost of buying property in Mexico comes to roughly 4% to 9% on top of the price for a cash purchase in 2026. Where you land in that range depends mostly on one line: the acquisition tax, which each municipality sets in its yearly income law. It runs from 2.1% in Puerto Escondido to about 5.94% in Amealco.

On a USD 500,000 home, our estimate comes to about USD 23,900 to 31,600 in San Miguel de Allende, and USD 31,900 to 41,100 in Huatulco, where foreigners buy through a bank trust. After closing, yearly costs are modest by US standards: property tax, the trust fee on the coast, HOA dues and insurance.

What the cost of buying property in Mexico includes

As the buyer, you usually pay these at closing:

• Acquisition tax (called ISABI or traslado de dominio), set by the municipality.
• Notary fees, negotiated with the notary you choose.
• Public Registry fees to record the deed, plus a no-liens certificate.
• An appraisal (avalúo), which helps set the tax base.
• Your ownership paperwork: a convenio de renuncia with Mexico's Foreign Ministry (SRE) inland, or a bank trust (fideicomiso) within 50 km of the coast.
• Optional items: title insurance and an escrow company.

The seller pays income tax on the sale, which the notary calculates and withholds. If the order of offer, promise contract and deed is new to you, our guide on how to buy property in Mexico as an American walks through it step by step.

Acquisition tax by municipality, 2026

We read each rate in the town's 2026 Ley de Ingresos. The "2% everywhere" figure you'll see online is often wrong.

Three details matter as much as the rate. The base is the highest of the price, the fiscal value and an appraisal, so a lower price in the deed doesn't lower the tax. The Huatulco and Puerto Escondido surcharges are in the law, but ask your notary how they're applied at closing.

And Huatulco's brackets, read literally, apply the rate to the whole value. A home just over MXN 5 million moves from 3.5% to 4.5% on every peso.

Notary, registry, appraisal and certificates

Notary. A Mexican notary is a lawyer given public faith by the state, and the buyer can usually choose one. Fees are negotiated. Published figures for San Miguel run from about 1% to 2.5% of the price. Ask for a written budget (presupuesto) that lists the fee, each tax, and whether IVA is included.

Registry. In Guanajuato, recording the deed costs MXN 2,574 in person (2,460 online), and the no-liens certificate MXN 470. In Oaxaca, recording a transfer costs 14 UMA, about MXN 1,642, and the no-liens certificate about MXN 528.

Appraisal. San Miguel's municipal appraisal costs MXN 138.88 plus 0.6 pesos per thousand of value. Private appraisers charge roughly 1 to 1.5 pesos per thousand, or MXN 5,000 to 7,500 on a MXN 5 million home. In Amealco, an official state appraisal is mandatory.

Optional: title insurance, escrow and a power of attorney

Title insurance is available in Mexico from insurers licensed by the country's insurance regulator, as a one-time premium. Quotes vary widely, so ask for one on your specific property. It isn't available for ejido (agrarian) land, which is one more reason to buy only fully titled property.

An escrow company holds your funds until the notary authorizes their release. Mexican law doesn't require one, and fees aren't published, so ask for a written quote. If you can't be at the signing, a power of attorney granted at a Mexican consulate in the US costs MXN 3,148.72 in 2026, about USD 170.

Ask for an official electronic invoice (CFDI) for every fee you pay. You'll want them when you sell.

Convenio de renuncia or fideicomiso

Inland: San Miguel and Amealco. Americans hold title directly. You file a written convenio de renuncia with SRE, agreeing to be treated as a Mexican for that property. Since a 1998 SRE agreement, US citizens file only the convenio, with no permit. The 2026 fee is MXN 5,250, about USD 285.

On the coast: Huatulco and Puerto Escondido. Within 50 km of the beach, a Mexican bank holds title in trust for you. The SRE permit costs MXN 21,650 plus a MXN 596 review fee, about USD 1,200. Banks set their own setup fees, so the trust typically costs USD 1,500 to 3,000 to set up, permit included. Our fideicomiso guide explains how the trust works and how to name beneficiaries.

Worked example: a USD 500,000 home, inland vs coast

This is an estimate, not a quote. Assumptions: a cash purchase; the Banxico FIX rate of 18.4253 pesos per dollar on October 19, 2026, so a price of MXN 9,212,650; and a tax base equal to the price.

The same home in Puerto Escondido's municipality would pay about USD 10,500 in acquisition tax instead of USD 24,750, and about USD 29,700 in Amealco. Title insurance, escrow fees and wire charges are not included. If the appraisal comes in above the price, the tax follows the appraisal.

If you'll borrow part of the price, our Mexico mortgage calculator adds closing costs to the cash you need on signing day.

Yearly costs of owning

Predial is charged on the cadastral value, which is usually well below market value, so bills are low by US standards. In San Miguel, a fiscal value of MXN 2 million means a bill of MXN 5,950, or MXN 5,057.50 if you pay the year in January. Puerto Escondido gives 30% off in January and Amealco 20%.

For HOA dues, ask for last year's budget, the reserve balance and the minutes of the latest owners' meeting before you sign. On the coast, the Eastern Pacific hurricane season runs from May 15 to November 30, so read the policy's wind and flood terms. Water in San Miguel runs about MXN 374 a month at 15 cubic meters.

Renting the home out, or selling it later, brings its own taxes. We cover both in taxes on Mexican property for Americans.

How to keep closing costs predictable

1. Ask the notary for a written closing budget before you sign the promise contract.
2. Ask which value will be the tax base: price, fiscal value or appraisal.
3. Confirm whether municipal surcharges are added to the acquisition tax.
4. Hold the closing costs in pesos, or allow for a currency move between contract and deed.
5. Agree in writing how the money will travel. Our guide on how to pay for property in Mexico from the US covers wires, escrow and the cash limit.

If you're pricing a home on the Oaxaca coast, BB Residential has residences in Residencial Conejos, Huatulco, from USD $340,000 to $568,251, with three beaches within walking distance. We can ask the notary for a written closing budget on a specific unit before you commit to anything.

This guide is general information, not legal or tax advice. Confirm your case with a Mexican notary and a tax advisor.