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Mexico City property buyers face closing costs of 8% to 13% of the purchase price, significantly higher than many international markets.
These costs include notary fees ranging from 4% to 7%, property transfer taxes of 2% to 3%, and various administrative charges that often surprise first-time buyers. Understanding these expenses upfront helps prevent budget overruns during what is likely your largest financial transaction in Mexico City.
If you want to go deeper, you can check our pack of documents related to the real estate market in Mexico City, based on reliable facts and data, not opinions or rumors.
Mexico City closing costs typically range from 8% to 13% of the property purchase price, with notary fees being the largest component at 4-7% of the property value.
Foreign buyers don't face additional costs compared to Mexican citizens in Mexico City, but must budget for appraisal fees, mortgage origination charges, and potential HOA advance payments that vary by property type.
| Cost Component | Typical Range | Example for 3M MXN Property |
|---|---|---|
| Notary Fees (includes taxes) | 4% - 7% | 120,000 - 210,000 MXN |
| Property Transfer Tax (ISAI) | 2% - 3% | 60,000 - 90,000 MXN |
| Registration Fees | 1% - 1.5% | 30,000 - 45,000 MXN |
| Appraisal & Survey | 6,000 - 12,000 MXN | 6,000 - 12,000 MXN |
| Mortgage Origination | 1% or 10,000-30,000 MXN | 30,000 MXN |
| HOA Prepayment (if applicable) | 2-3 months advance | 4,000 - 30,000 MXN |
| Total Range | 8.5% - 13% | 255,000 - 400,000 MXN |
How much are the typical notary fees in Mexico City when buying your first home?
Notary fees in Mexico City typically range from 4% to 7% of your property's purchase price, making them the largest component of your closing costs.
These comprehensive fees cover far more than document notarization. The notary public performs legal due diligence, verifies property titles, calculates and pays transfer taxes, and registers the deed with the Public Registry. As of September 2025, you can expect to pay between 120,000 to 210,000 MXN in notary fees for a typical 3 million MXN property.
By law in Mexico, the buyer customarily selects the notary, but sellers or agents may propose someone—they cannot legally require the buyer to choose a particular notary. This gives you leverage to shop around for competitive rates, as notary fees are negotiable within regulated bands.
Mexican notaries function as government-appointed legal professionals with extensive responsibilities beyond simple document authentication. They act as legal gatekeepers ensuring every aspect of your transaction complies with Mexican property law, which explains why their fees are substantially higher than notary services in other countries.
It's something we develop in our Mexico City property pack.
What percentage of the purchase price should I expect to pay in property transfer tax here?
Property transfer tax in Mexico City, known as ISAI (Impuesto Sobre AdquisiciĂłn de Inmuebles), typically ranges from 2% to 3% of your property's assessed value.
The tax is calculated based on the higher amount between the assessed cadastral value and actual sale price, with rates varying by Mexican state but generally ranging from 2% to 5%. As of September 2025, Mexico City maintains rates at the lower end of this spectrum, typically 2% to 3% of property value.
For a 3 million MXN property, you should budget 60,000 to 90,000 MXN for property transfer tax. This tax is always the buyer's responsibility and cannot be negotiated away, as it's collected directly by the government through the notary public.
Mexico's common practice of using assessed property value to determine the acquisition tax typically works in the buyer's favor, as a home that costs $100,000 may only be assessed at $40,000, resulting in lower tax calculations. However, be aware that assessed values in Mexico City tend to be more aligned with market prices than in other Mexican regions.
The transfer tax becomes deductible when calculating capital gains upon future sale, effectively reducing your long-term tax burden if you later sell the property for profit.
How much does property registration at the Public Registry usually cost in Mexico City?
Property registration fees at the Public Registry in Mexico City typically cost between 1% to 1.5% of your property's purchase price.
The costs for registering a property vary by state but generally include both a fixed fee and a variable fee, with the fixed fee in 2023 amounting to 446 Mexican pesos for document examination. The variable component scales with your property's value, creating the 1% to 1.5% total cost range.
For a 3 million MXN property, expect to pay approximately 30,000 to 45,000 MXN in registration fees. These fees are paid directly by the notary and then added to the notary's total charges, so you'll typically see them itemized within your comprehensive notary bill.
Registration at the Public Registry is mandatory and provides legal certainty of ownership. Under Mexican law, all legal acts related to the transfer of real estate must be registered in the public registry of property for declaratory and publicity purposes. This registration protects your ownership rights against third-party claims.
The registration process has become more efficient in recent years, with many registries implementing digital systems that reduce processing times from several months to weeks in Mexico City.
What role does the notary play, and do I have to choose the one appointed by the seller?
The notary public in Mexico City serves as the central legal authority for your property transaction, functioning far beyond simple document notarization.
Mexican notaries are legal experts, appointed by the government, who ensure every document and transaction aligns with Mexican legal standards and act as title investigators who verify the property is free of legal tangles like liens or disputes. They draft the purchase deed (escritura), collect and remit all applicable taxes, and register the transaction with the Public Registry.
By law in Mexico, the buyer customarily selects the notary, and sellers or agents cannot legally require the buyer to choose a particular notary. This is your right as the purchaser, giving you control over this crucial professional relationship.
You should interview multiple notaries and compare their fee structures, timelines, and experience with similar transactions. Ask about their familiarity with foreign buyers if applicable, their typical processing times, and request detailed fee breakdowns before making your selection.
The notary bears legal liability for the transaction's accuracy and completeness, which explains their comprehensive due diligence process and relatively high fees. Choose someone with strong local reputation and extensive property transaction experience in Mexico City.
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Are there additional fees if the property is new construction versus a resale?
New construction properties in Mexico City typically incur higher closing costs due to additional documentation requirements and VAT obligations.
Commercial property transactions are liable to IVA (Value Added Tax) at the current rate in addition to the acquisitions tax, and while residential properties are generally exempt, new construction from developers may include VAT charges. As of September 2025, IVA stands at 16% in Mexico.
New construction purchases often require additional permits, developer-related documentation, and compliance certificates that increase notary processing time and fees. You may also need to budget for warranty documentation, building permits verification, and construction completion certificates.
Resale properties, conversely, focus more on historical ownership verification and title research. However, they may trigger additional costs if the property has complex ownership histories, outstanding liens, or incomplete documentation from previous transactions.
New developments frequently require HOA establishment fees and advance maintenance payments that can add 10,000 to 50,000 MXN to your closing costs. Established resale properties typically have straightforward HOA fee structures already in place.
How much should I budget for appraisal and survey costs required by banks in Mexico City?
Appraisal and survey costs for bank-financed purchases in Mexico City typically range from 6,000 to 12,000 MXN combined.
Appraisal fees vary but typically range from 0.1% to 0.5% of the property value, while technical surveys required by Mexican banks add additional costs. Some lenders include these fees within their overall mortgage setup charges, while others bill them separately.
As of September 2025, new federal regulations require commercial appraisals for all property transactions to validate property values, even for cash purchases. The notary is now required to validate the value of the property via a commercial appraisal, which is a significant change from previous requirements.
Property surveys in Mexico City verify boundary lines, measure exact square footage, and confirm the property matches official records. These typically cost 3,000 to 8,000 MXN depending on property size and complexity.
It's something we develop in our Mexico City property pack.
What are the average bank and mortgage origination fees if I finance the purchase locally?
Mortgage origination fees in Mexico City typically cost 1% of your loan amount, plus additional bank administrative charges ranging from 10,000 to 30,000 MXN.
As of July 2025, Mexico's average fixed mortgage rates range from 9% to 12%, with competitive cross-border USD financing options available at 7-9% through specialized brokers. Origination fees are calculated separately from interest rates and due at closing.
Mexican banks typically require life insurance policies tied to mortgages, adding 0.5% to 1% annually of your loan amount. Some banks mandate specific insurance providers, while others offer competitive options you can choose from.
Additional bank fees often include loan processing charges (5,000 to 15,000 MXN), document preparation fees, and administrative costs that can total 20,000 to 40,000 MXN beyond the basic origination fee. Request detailed fee schedules from multiple lenders before committing.
Foreign buyers using Mexican mortgages may face additional documentation costs for income verification, tax record translations, and specialized legal reviews that add 10,000 to 25,000 MXN to total closing costs.
Are there recurring costs like homeowner association fees that I need to prepay at closing?
HOA fees in Mexico City range from 2,000 to 10,000 MXN monthly, with most closings requiring 1 to 3 months advance payment.
Luxury developments in areas like Polanco or Santa Fe typically charge 5,000 to 15,000 MXN monthly for amenities including 24/7 security, concierge services, fitness facilities, and common area maintenance. Mid-range buildings in Roma Norte or Condesa average 2,000 to 6,000 MXN monthly.
Beyond monthly fees, some developments require special assessments for major repairs or improvements. Budget an additional reserve fund contribution of 10,000 to 30,000 MXN that may be required at closing for new developments establishing their maintenance reserves.
Property taxes (predial) in Mexico City are relatively low, typically 0.1% to 0.3% of cadastral value annually, due by March 31st each year. Many buyers prepay the first year's property tax at closing, adding 5,000 to 20,000 MXN depending on property value.
Utility connection fees and deposits for electricity, water, gas, and internet service can total 3,000 to 8,000 MXN, often required before or during the closing process for immediate service activation.
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.
Do foreigners buying in Mexico City face extra costs compared to Mexican citizens?
Foreign buyers in Mexico City do not typically face additional closing costs compared to Mexican citizens, as the city lies outside restricted coastal and border zones.
Foreigners can own property directly in Mexico City without requiring fideicomiso bank trusts, as the restricted zone includes land within 100 kilometers of international borders or 50 kilometers of coastlines. This eliminates the 1,000 to 2,000 USD annual trust fees required in coastal areas.
However, foreign buyers may incur additional costs for document translations, specialized legal representation, and tax ID (RFC) registration that can add 5,000 to 15,000 MXN to closing costs. Some notaries charge extra for foreign buyer documentation and compliance verification.
Foreign buyers must obtain permits from Mexico's Ministry of Foreign Affairs, typically costing around 400 USD (approximately 7,000 MXN as of September 2025). This federal requirement was reintroduced in 2022, though some states are not actively enforcing it.
Currency exchange costs and international wire transfer fees can add 0.5% to 1.5% to your total transaction costs, depending on your bank and the amount being transferred. Consider these when budgeting your total acquisition expenses.
What hidden expenses often surprise first-time buyers here, like insurance or administrative charges?
First-time buyers in Mexico City are often surprised by administrative fees, insurance requirements, and documentation costs that add 15,000 to 50,000 MXN to their closing expenses.
Title insurance, while not mandatory, is highly recommended and costs 0.5% to 0.7% of property value. For a 3 million MXN property, budget 15,000 to 21,000 MXN for comprehensive title protection against unknown liens or ownership disputes.
Outstanding utility bills and property tax arrears from previous owners frequently surprise buyers. Notaries should verify these are cleared, but budget 2,000 to 10,000 MXN as contingency for unexpected previous owner debts.
Certified document copies, apostille services for foreign documents, and administrative processing fees often total 3,000 to 8,000 MXN. Each certified copy from the notary costs 200 to 500 MXN, and complex transactions may require dozens of certified documents.
Bank-mandated life insurance policies for mortgages, courier fees for document delivery, and emergency processing charges for expedited closings can add unexpected costs. Always request itemized fee estimates from your notary before proceeding.
It's something we develop in our Mexico City property pack.
How do closing costs break down in pesos for a 3 million MXN apartment in Mexico City?
| Cost Component | Percentage Range | Amount in MXN |
|---|---|---|
| Notary Fees (comprehensive) | 4% - 7% | 120,000 - 210,000 |
| Property Transfer Tax (ISAI) | 2% - 3% | 60,000 - 90,000 |
| Registration Fees | 1% - 1.5% | 30,000 - 45,000 |
| Appraisal & Survey | Fixed costs | 6,000 - 12,000 |
| Mortgage Origination (if financing) | 1% or fixed | 30,000 or 10,000-30,000 |
| HOA Advance (2-3 months) | Variable | 4,000 - 30,000 |
| Administrative & Legal extras | Variable | 5,000 - 15,000 |
| Total Range | 8.5% - 13.3% | 255,000 - 400,000 |
What's the best way to negotiate or reduce some of these costs before signing?
The most effective strategy for reducing closing costs involves negotiating notary fees and shopping multiple service providers before committing to any agreements.
Notary fees are negotiable within regulated bands, and you can seek multiple notary quotes since the buyer gets to choose which Notary Public to use. Request detailed fee breakdowns from at least three notaries and negotiate based on competitive quotes, potentially saving 10,000 to 30,000 MXN.
Ask about government discount programs like "Jornada Notarial" that sometimes offer reduced fees or tax breaks for certain transactions. These programs can provide 5% to 15% savings on select government charges and taxes.
Negotiate with sellers to cover specific closing costs, especially if you're paying cash or closing quickly. Sellers may agree to pay HOA setup fees, outstanding utilities, or certain administrative charges to secure the sale.
For financed purchases, compare mortgage brokers and banks extensively. Some lenders offer lower origination fees or include appraisal costs in exchange for slightly higher interest rates, depending on your financial profile and loan amount.
Time your closing strategically - avoid December and January when notaries often charge premium rates due to high demand from buyers wanting to close before year-end tax deadlines.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Mexico City closing costs represent a significant portion of your property investment, typically 8% to 13% of purchase price, making advance planning essential for successful property acquisition.
Understanding these expenses and negotiating where possible can save substantial amounts while ensuring you comply with all legal requirements for secure property ownership in Mexico's capital.
Sources
- Mexperience - Closing Costs and Taxes When Buying Property in Mexico
- Riviera Maya Cozy - Notary Fees in Mexico 2025
- Riviera Maya Cozy - Closing Costs in Mexico 2025
- Mexlaw - Real Estate Closing Costs in Mexico
- TheLatinvestor - Full List of Property Taxes in Mexico
- Accounting Insights - Tax Implications of Owning Property in Mexico
- Global Mortgage MX - Mexico Real Estate Costs Uncovered
- Mexico Life - Mexico Mortgage Calculator & Guide 2025
- Nolab - How to Register Property in Public Registry
- Legal Clarity - Can I Buy Property in Mexico as a US Citizen