Authored by the expert who managed and guided the team behind the Mexico Property Pack
Everything you need to know before buying real estate is included in our Mexico Property Pack
This guide breaks down every cost, tax, and fee foreign buyers face when purchasing residential property in Mexico in 2026.
We constantly update this blog post with the latest official rates, legal changes, and real transaction data from across Mexico.
Buying property in Mexico as a foreigner involves understanding local acquisition taxes, notary requirements, bank trust structures, and ongoing ownership costs that vary significantly by state and municipality.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Mexico.
Overall, how much extra should I budget on top of the purchase price in Mexico in 2026?
How much are total buyer closing costs in Mexico in 2026?
As of early 2026, total buyer closing costs in Mexico typically range from 5% to 10% of the purchase price, which on a 5 million MXN property (roughly 285,000 USD or 265,000 EUR) means budgeting an extra 250,000 to 500,000 MXN (14,000 to 28,500 USD or 13,000 to 26,500 EUR).
The minimum extra budget for closing costs in Mexico is around 4% of the purchase price (200,000 MXN, 11,400 USD, or 10,600 EUR on a 5 million MXN property), but this only applies when you buy outside the restricted zone, your acquisition tax is at the low end, and the property has no legal complications.
The maximum realistic closing cost budget in Mexico reaches 12% of the purchase price (600,000 MXN, 34,000 USD, or 31,800 EUR on a 5 million MXN property), which includes fideicomiso setup, legal review, translation services, and higher state acquisition taxes.
Whether your Mexico closing costs fall at the low or high end depends mainly on three factors: whether the property is in a coastal or border restricted zone requiring a fideicomiso, which state or municipality sets your acquisition tax rate, and how much independent legal support you choose to hire.
What's the usual total % of fees and taxes over the purchase price in Mexico?
The usual total percentage of fees and taxes over the purchase price in Mexico in 2026 is between 5% and 8% for properties outside the restricted zone, and between 7% and 12% when a fideicomiso bank trust is required for coastal or border properties.
The realistic low-to-high percentage range covering most standard residential transactions in Mexico runs from about 4% (absolute minimum in low-tax states with no trust) to roughly 12% (high-tax coastal property with full legal support and fideicomiso).
Government taxes typically make up 3% to 5% of that total (mainly the acquisition tax plus registry fees), while professional service fees like notary, lawyer, and translation add another 1.5% to 4%, with fideicomiso costs adding 1% to 3% more when applicable.
By the way, you will find much more detailed data in our property pack covering the real estate market in Mexico.
What costs are always mandatory when buying in Mexico in 2026?
As of early 2026, mandatory costs when buying property in Mexico include the local acquisition tax (ISAI), notary fees for formalizing the deed, Public Registry inscription fees, property appraisal, standard certificates (lien searches, tax status), and, if you buy in the restricted zone, fideicomiso setup and SRE permit fees.
Costs that are optional but highly recommended in Mexico include hiring an independent buyer's lawyer (separate from the notary), professional translation services if you do not read Spanish legal documents, a technical property inspection, and title insurance where available.
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What taxes do I pay when buying a property in Mexico in 2026?
What is the property transfer tax rate in Mexico in 2026?
As of early 2026, the property transfer tax rate in Mexico (called ISAI or Impuesto Sobre Adquisicion de Inmuebles) ranges from 2% to 5% of the property value depending on which state or municipality you buy in, with popular foreign buyer destinations like Quintana Roo charging 2% and Los Cabos charging 3%.
Foreigners in Mexico generally do not pay extra transfer taxes compared to Mexican nationals, though the structural cost of buying through a fideicomiso in the restricted zone effectively adds to overall closing expenses.
Residential property purchases in Mexico are typically exempt from VAT (IVA) when the home is used as "casa habitacion" (dwelling), but new-build purchases may have VAT components on construction services depending on how the developer structures the invoices.
Mexico does not have a traditional stamp duty like some countries, but the closest equivalents are the ISAI acquisition tax and registry rights fees, both of which are calculated as percentages of the property value or transaction amount.
Are there tax exemptions or reduced rates for first-time buyers in Mexico?
Tax exemptions or reduced rates for first-time buyers in Mexico are location-specific and not universally available, though some municipalities offer reduced taxable bases for certain social interest housing or special property classifications.
Buying property through a company instead of as an individual in Mexico does not automatically reduce purchase taxes, but it does change how rental income and capital gains are taxed later, often adding ongoing accounting and compliance costs.
There is generally no significant tax difference between buying a new-build versus a resale property in Mexico regarding acquisition tax, though VAT treatment and invoicing structures may differ slightly for developer sales.
To qualify for any municipal exemptions that might exist in Mexico, first-time buyers typically need to present documentation proving the property classification (such as social interest housing), provide identification, and work with their notary to confirm eligibility before closing.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Mexico versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you’re planning to invest there.
Which professional fees will I pay as a buyer in Mexico in 2026?
How much does a notary or conveyancing lawyer cost in Mexico in 2026?
As of early 2026, notary fees in Mexico typically range from 0.5% to 1.5% of the property value, meaning a 5 million MXN property (285,000 USD or 265,000 EUR) would cost roughly 25,000 to 75,000 MXN (1,400 to 4,300 USD or 1,300 to 4,000 EUR) for notary services alone.
Notary fees in Mexico are usually charged as a percentage of the property price based on official tariff schedules, though the exact calculation can include fixed components and varies by state.
Translation and interpreter services for foreign buyers in Mexico typically cost 400 to 1,200 MXN per page (23 to 69 USD or 21 to 63 EUR) for document translation, plus 2,000 to 8,000 MXN (115 to 460 USD or 105 to 420 EUR) for a signing interpreter session.
A tax advisor is not strictly required for every purchase in Mexico, but helpful if you plan to rent or resell, with advisory fees typically running 5,000 to 25,000 MXN (285 to 1,430 USD or 265 to 1,315 EUR) for straightforward guidance.
We have a whole part dedicated to these topics in our our real estate pack about Mexico.
What's the typical real estate agent fee in Mexico in 2026?
As of early 2026, the typical real estate agent fee in Mexico ranges from 5% to 8% of the sale price, which on a 5 million MXN property (285,000 USD or 265,000 EUR) amounts to 250,000 to 400,000 MXN (14,000 to 23,000 USD or 13,000 to 21,000 EUR).
In Mexico, the real estate agent fee is usually paid by the seller rather than the buyer, though this is negotiable and the cost can indirectly affect the price you pay.
The realistic low-to-high range for agent fees in Mexico runs from about 4% in competitive or slower markets up to 10% for luxury properties or exclusive listings with premium services.
How much do legal checks cost (title, liens, permits) in Mexico?
Legal checks including title search, lien verification, and permit review in Mexico typically cost between 5,000 and 25,000 MXN (285 to 1,430 USD or 265 to 1,315 EUR), depending on the complexity and the municipality's certificate fees.
The property valuation (appraisal) fee in Mexico usually runs 3,000 to 12,000 MXN (170 to 685 USD or 160 to 630 EUR) for standard residential properties, with higher fees for luxury or complex properties.
The most critical legal check you should never skip in Mexico is the full title search and lien certificate verification, as unpaid debts, irregular construction permits, or ejido land issues can make your purchase worthless or legally contested.
Buying a property with hidden issues is something we mention in our list of risks and pitfalls people face when buying real estate in Mexico.
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What hidden or surprise costs should I watch for in Mexico right now?
What are the most common unexpected fees buyers discover in Mexico?
The most common unexpected fees buyers discover in Mexico include valuation mismatches (where taxes are calculated on the higher of declared price, cadastral value, or appraisal), condo special assessments, regularization costs for missing permits or unregistered construction, and bank transfer fees or verification delays.
Buyers in Mexico can inherit unpaid property taxes (predial), water or utility debts, and HOA arrears if proper due diligence is not conducted before closing.
Scams involving fake listings or fake fees do occur in Mexico, especially through fake "reservation deposits" or phony "notary processing fees" not tied to any legitimate workflow, so always verify identities and pay through documented channels.
Fees that sellers or agents often do not disclose upfront in Mexico include condo association debts, pending regularization requirements for unpermitted additions, and the actual cadastral or appraised value that will determine your tax bill.
In our property pack covering the property buying process in Mexico, we go into details so you can avoid these pitfalls.
Are there extra fees if the property has a tenant in Mexico?
Extra fees when buying a tenanted property in Mexico may include legal review of the existing lease (5,000 to 15,000 MXN or 285 to 860 USD or 265 to 790 EUR), tenant deposit handling, and potentially negotiation costs if you need vacant possession.
When you buy a tenanted property in Mexico, you legally inherit the existing lease agreement, meaning you must honor its terms until it expires unless you negotiate an early termination with the tenant.
Terminating an existing lease immediately after purchase in Mexico is generally not possible unless the lease allows it or you negotiate a buyout with the tenant, as Mexican tenant protections require respecting valid contracts.
A sitting tenant in Mexico can affect the property's market value either positively (guaranteed rental income for investors) or negatively (limited access for personal use), and gives buyers negotiating leverage if the seller wants a quick or clean exit.
If you want to optimize your rental strategy, you can read our complete guide on how to buy and rent out in Mexico.
We have made this infographic to give you a quick and clear snapshot of the property market in Mexico. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
Which fees are negotiable, and who really pays what in Mexico?
Which closing costs are negotiable in Mexico right now?
Negotiable closing costs in Mexico typically include who pays for certain certificates and searches, minor notary extras, agent fee splits between buyer and seller, and repair credits discovered during property inspections.
Closing costs that are fixed by law or regulation and cannot be negotiated in Mexico include the ISAI acquisition tax rate, core Public Registry inscription fees, mandatory notary formalization costs, and SRE permit fees for fideicomisos.
Buyers in Mexico can realistically achieve discounts of 10% to 30% on negotiable professional fees like independent legal review or translation services, especially when bundling services or in slower markets.
Can I ask the seller to cover some closing costs in Mexico?
The likelihood that a seller will agree to cover some closing costs in Mexico depends heavily on market conditions and the specific property, but in balanced or slower markets, it is quite common to negotiate seller contributions or credits.
Sellers in Mexico are most commonly willing to cover costs like repairs identified during inspection, outstanding HOA fees, unpaid predial taxes, or minor certificate expenses rather than the major acquisition tax.
Sellers in Mexico are more likely to accept covering closing costs when the property has been listed for a long time, has visible maintenance issues, legal complications, or when the overall market favors buyers.
Is price bargaining common in Mexico in 2026?
As of early 2026, price bargaining is common in Mexico's residential real estate market, especially on resale properties and listings that have been on the market for several months.
Buyers in Mexico typically negotiate 3% to 8% below the asking price on resale properties, which on a 5 million MXN property (285,000 USD or 265,000 EUR) means potential savings of 150,000 to 400,000 MXN (8,500 to 23,000 USD or 8,000 to 21,000 EUR), with even larger discounts possible for properties with issues.
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What monthly, quarterly or annual costs will I pay as an owner in Mexico?
What's the realistic monthly owner budget in Mexico right now?
A realistic monthly owner budget in Mexico for a mid-range property in 2026 runs from about 5,000 to 20,000 MXN per month (285 to 1,140 USD or 265 to 1,050 EUR), excluding mortgage payments.
The main recurring expense categories in Mexico include HOA or condominium fees (if applicable), utilities (electricity, water, gas, internet), property insurance, and a maintenance reserve for repairs.
The realistic low-to-high range for monthly owner costs in Mexico runs from about 3,000 MXN per month (170 USD or 160 EUR) for a simple inland apartment to 30,000 MXN or more (1,700 USD or 1,580 EUR) for a luxury coastal villa with high HOA fees.
The monthly cost that tends to vary the most in Mexico is air conditioning electricity, especially in hot coastal regions like Cancun, Los Cabos, or Puerto Vallarta, where summer electric bills can triple or quadruple compared to winter months.
You can see how this budget affect your gross and rental yields in Mexico here.
What is the annual property tax amount in Mexico in 2026?
As of early 2026, annual property tax (predial) in Mexico is remarkably low, typically ranging from 0.05% to 0.3% of the cadastral (assessed) value, which for a mid-range home worth 5 million MXN market value might mean only 3,000 to 15,000 MXN per year (170 to 860 USD or 160 to 790 EUR).
The realistic low-to-high range for annual property taxes in Mexico runs from about 1,500 MXN (86 USD or 80 EUR) for modest properties with low cadastral values up to 60,000 MXN or more (3,430 USD or 3,160 EUR) for high-value coastal or urban properties with updated assessments.
Property tax in Mexico is calculated based on the cadastral (assessed) value of the property, which is typically much lower than market value, and rates are set by each municipality.
Many Mexican municipalities offer early payment discounts of 10% to 25% on predial if you pay in January or February, and some localities provide exemptions or reductions for seniors, retirees, or certain social housing.
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Mexico. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
If I rent it out, what extra taxes and fees apply in Mexico in 2026?
What tax rate applies to rental income in Mexico in 2026?
As of early 2026, non-resident landlords in Mexico are typically subject to withholding tax on rental income, with the basic non-resident rate being 25% of gross rental income when no deductions are claimed, according to SAT guidance.
Mexican tax residents who rent out property can deduct legitimate expenses like maintenance, insurance, property tax, and depreciation from rental income, potentially reducing their effective tax rate significantly below the headline progressive rates of 1.92% to 35%.
The realistic effective tax rate after deductions for typical Mexican resident landlords ranges from about 5% to 20% of net rental income, depending on expense levels and income brackets.
Foreign property owners who are non-residents generally pay a higher effective rental income tax than Mexican residents because their 25% withholding applies to gross income rather than net, though tax treaty benefits may apply for some nationalities.
Do I pay tax on short-term rentals in Mexico in 2026?
As of early 2026, short-term rental income in Mexico is subject to income tax (ISR), and may also trigger VAT obligations (16%) and local lodging taxes (2% to 5% depending on the state) depending on how the rental is structured and collected.
Short-term rental income is not necessarily taxed at a different rate than long-term rental income in Mexico, but the complexity increases because platforms like Airbnb may withhold some taxes while leaving others to the owner, and VAT treatment differs from long-term residential leases.
If you want to optimize your rental strategy, you can read our complete guide on how to buy and rent out in Mexico.
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If I sell later, what taxes and fees will I pay in Mexico in 2026?
What's the total cost of selling as a % of price in Mexico in 2026?
As of early 2026, the total cost of selling a residential property in Mexico typically ranges from 7% to 11% of the sale price.
The realistic low-to-high percentage range for total selling costs in Mexico runs from about 5% (minimal agent fee, favorable capital gains treatment) to around 13% (full agent commission plus significant capital gains tax for non-residents).
The specific cost categories making up total selling expenses in Mexico include real estate agent commission (5% to 8%), capital gains tax (ISR), notary fees for the seller's side, certificate costs, and potential early mortgage repayment if applicable.
The single largest contributor to selling expenses in Mexico is usually the real estate agent commission, followed by capital gains tax (ISR), especially for non-residents who face the 25% gross withholding rule.
What capital gains tax applies when selling in Mexico in 2026?
As of early 2026, non-resident sellers in Mexico face a capital gains tax of 25% on the gross sale price under the basic withholding regime, while residents can choose to pay 25% on gross or use a progressive scale of 1.92% to 35% on net capital gain after deductions.
Exemptions to capital gains tax in Mexico include the primary residence exemption for Mexican tax residents with a valid RFC, which allows up to approximately 700,000 UDIs (around 5 to 6 million MXN) of gain to be exempt once every three years.
Foreigners do not automatically pay extra capital gains taxes compared to Mexicans, but non-resident status triggers the 25% gross withholding rule which is often less favorable than the net gain calculation available to residents.
Capital gain in Mexico is calculated as the sale price minus the original purchase price (adjusted for inflation using the INPC index), documented improvement costs, real estate commissions, and notary or legal fees, with the adjusted cost not being less than 10% of the transfer value.
We made this infographic to show you how property prices in Mexico compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Mexico, we always rely on the strongest methodology we can, and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why It's Authoritative | How We Used It |
|---|---|---|
| SAT (Mexico Tax Authority) - Property Sales | Official federal tax authority guidance for non-residents. | We used it to confirm the 25% gross capital gains rule for non-residents. We cross-referenced it with law text for accuracy. |
| SAT (Mexico Tax Authority) - Rental Income | Official SAT guidance on non-resident rental taxation. | We used it to explain how rental income is taxed for foreign owners. We translated technical rules into practical budgeting ranges. |
| Camara de Diputados - Income Tax Law (LISR) | Official consolidated federal tax law from Congress. | We used it to ground capital gains and non-resident withholding rules. We triangulated legal text with SAT practical guidance. |
| SRE (Foreign Affairs Ministry) - Fideicomiso Permit | Official ministry administering restricted zone permits. | We used it to confirm fideicomiso permit requirements and fee structure. We validated when foreign buyers actually need this permit. |
| Ley de Hacienda - Los Cabos Municipality | Official municipal tax law from a major foreign-buyer market. | We used Article 35 to anchor the 3% acquisition tax example. We showed how Mexico's rates vary by location. |
| Congreso de Quintana Roo - Acquisition Tax Law | Official state congress publication of applicable tax law. | We used it to anchor the 2% acquisition tax example for Riviera Maya. We built a credible national range from real law texts. |
| Colegio de Notarios CDMX - Notary Tariff | Official notary institution publishing fee schedules. | We used it to establish the 0.5% to 1.5% notary fee range. We explained how tariff-based fees work in Mexico. |
| CDMX Government - Public Registry Services | Official city portal for registry procedures. | We used it to confirm registry inscription requirements. We converted official procedures into practical fee estimates. |
| Banco de Mexico (Banxico) - UDIS Series | Central bank official publisher of UDIS values. | We used it to convert UDIS-based exemption thresholds into peso estimates. We explained key caps referenced in tax law. |
| BBVA Mexico - Restricted Zone Trust Product | Major bank offering the actual fideicomiso product foreigners use. | We used it to confirm banks actively offer these trusts. We validated annual trust fee budgeting ranges. |
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