Closing Costs in Mexico 2026: Everything You Need to Know
One of the most common mistakes when buying a property in Mexico is not considering the closing costs in the total budget. Many buyers calculate the property price correctly but are surprised at closing because the additional expenses can represent between 5% and 8% of the property's value.
In this guide, we explain what closing costs include, how much they cost specifically in Puerto Vallarta and Riviera Nayarit, and how to calculate them before making any decisions.
Quick Summary: For a $10M MXN property in Nayarit, expect to pay between $500,000 and $800,000 MXN in additional closing costs. In Jalisco, the numbers are similar, but the ISABI varies.
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What Are Closing Costs?
Closing costs are all the legal and tax expenses associated with formalizing the purchase of a property before a Notary Public and registering it in the Public Registry of Property. Without them, the sale has no legal validity.
Complete Breakdown of Closing Costs (2026)
1. Real Estate Acquisition Tax (ISABI)
The ISABI is the main tax in a real estate transaction. The rate varies by state:
| State | ISABI Rate | Example: $10M MXN |
|---|---|---|
| Nayarit (Bucerías, La Cruz, Sayulita, Punta Mita) | 2% | $200,000 MXN |
| Jalisco (Puerto Vallarta) | 2% – 3% | $200,000 – $300,000 MXN |
2. Notary Public Fees
The Notary charges for drafting the deed, verifying the title, and managing the process. In Jalisco and Nayarit, notary fees range from 0.8% to 1.5% of the property's value, depending on the notary and the complexity of the transaction.
3. Registration Fees at the Public Registry of Property
For the deed to be valid, it must be recorded in the Public Registry. The cost is around 0.3% to 0.6% of the property's appraised tax value.
4. Commercial Appraisal
This is mandatory to determine the property's tax value. Approximate cost: $3,000 to $8,000 MXN depending on the property type.
5. Fideicomiso (foreign buyers only)
If the buyer is a foreigner, a Fideicomiso (bank trust) is required. It has two costs:
- Setup Fee: $30,000 – $50,000 MXN (one-time payment)
- Annual Fee: $10,000 – $14,000 MXN per year
Real-World Example: Condo Purchase in Bucerías
Case: Nalua Bucerías — 2 bedrooms — $7,500,000 MXN
| Property price | $7,500,000 MXN |
| ISABI (2% Nayarit) | $150,000 MXN |
| Notary fees (1.2%) | $90,000 MXN |
| Registration Fees (0.4%) | $30,000 MXN |
| Commercial appraisal | $5,000 MXN |
| Miscellaneous expenses (copies, certificates) | $3,000 MXN |
| Total closing costs | $278,000 MXN (3.7%) |
💡 In this example, closing costs represented 3.7% of the price — below average because Nayarit has a lower ISABI. In Jalisco (Puerto Vallarta) the same condo would cost between $50,000 and $80,000 MXN more in taxes.
Nayarit vs. Jalisco: Which is More Favorable?
| Item | Nayarit (Bucerías, Pta. Mita, Sayulita) | Jalisco (Puerto Vallarta) |
|---|---|---|
| ISABI | 2% | 2% – 3% |
| Notary fees | 0.8% – 1.3% | 1% – 1.5% |
| Approximate total | 3.5% – 5% | 4% – 7% |
| Tax advantage | ✅ Lower total cost | — |
When Are Closing Costs Paid?
In a normal sale (completed property), the costs are paid on closing day along with the remaining balance for the property, directly at the notary's office.
In a pre-sale purchase (like Nalua by HOMIA), the payment is divided:
- 10% upon signing the promissory agreement
- Payments during construction according to the agreed-upon plan
- Closing costs + final balance at the time of titling (when construction is complete)
Frequently Asked Questions
Who pays the closing costs, the buyer or the seller?
In Mexico, by law and custom, closing costs are paid by the buyer. The seller pays ISR (Income Tax) on the profit made from the sale, which is a separate concept.
Does VAT apply to real estate sales?
VAT does not apply to the sale of residential property. However, it does apply to the notary's fees and other professional services involved in the process.
Can I deduct closing costs from my taxes?
Yes. Closing costs can be added to the property's acquisition cost for the purpose of calculating ISR in a future sale, which reduces the tax payable at that time.
How long does the titling process take?
Once all the documentation is in place, the titling process takes between 4 and 8 weeks. The longest step is usually obtaining the certificate of no property tax debt (predial) and the procedures before the Public Registry.
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