transactional costs
Total transaction costs, ranging from low to high for Mexico
*Estimates based on typical fees charged in 2019
Total Transaction Costs | ||
Who Pays? | ||
Acquisition Tax | 0.18% – 4.565% | buyer |
Notary Fee | 0.075% – 1.125% | buyer |
Registration Fee | 0.02% – 1.82% | buyer |
Other fees | 0.50% – 1.00% | buyer |
Title Insurance | 0.50% – 0.70% | buyer |
Real Estate Agent´s fee | 6% – 8% (+ 16% VAT) | seller |
Costs paid by buyer | 3.13% – 6.69% | |
Costs paid by seller | 5.48% – 8.96% | |
ROUNDTRIP TRANSACTION COSTS | 6.61% – 13.65% |
*Some additional details and explainations below.
ACQUISITION TAX | |
VALUE OF THE PROPERTY (MXN) | TAX (MXN) |
Up to 87,159.70 (US$4,587) | MXN152.31 (US$8.70) |
87,159.70 – 139,455.47 (US$7,340) | 0.03163% |
139,455.47 – 209,183.01 (US$11,010) | 0.03261% |
209,183.01 – 418,366.13 (US$22,019) | 0.03261% |
418,366.13 – 1,045,915.32 (US$55,048) | 0.03696% |
1,045,915.32 – 2,091,830.65 (US$110,096) | 0.04565% |
Over 2,091,830.65 (US$110,096) | 0.04565% |
Notary Fee
Services of a notary public (notario publico) are required in a real estate transaction. Based on the law, the Notary Public must ensure that all documents are in order and that all legal procedures have been adhered to. Notary fees are set by the federal district.
NOTARY FEE | |
VALUE OF THE PROPERTY (MXN) | TAX (MXN) |
Up to 132,791 (US$6,989) | MXN4,829 (US$254) |
132,791 – 265,584 (US$13,978) | 1.125% |
265,584 – 531,168 (US$27,956) | 0.975% |
531,168 – 1,062,333 (US$55,912) | 0.825% |
1,062,333 – 2,124,670 (US$111,825) | 0.675% |
2,124,670 – 4,249,340 (US$223,650) | 0.525% |
4,249,340 – 8,498,680 (US$447,299) | 0.375% |
8,498,680 – 16,997,358 (US$894,598) | 0.225% |
Over 16,997,358 (US$894,598) | 0.075% |
Notary Publics are not simply lawyers that “notarize” documents, they must: (1) be at least 35 years old; (2) have a degree in Law; (3) have sufficient experience; and (4) pass an exam before they can be appointed by the State Governor.
Other Fees
Foreign buyers should allot additional 0.5% to 1% for setting up a bank trust, foreign office permit and legal fees.
Set up fees for a bank trust ranges from US$450 to US$1,000, with annual service charge of around the same amount. Permit from the Mexican foreign affairs office is around US$1,100.
Most foreign buyers hire Spanish-speaking lawyers to deal with the notary public and to check the contract.