Mexico City payment: wire transfer, SPEI, or escrow?

Authored by the expert who managed and guided the team behind the Mexico Property Pack

Yes, the analysis of Mexico City's property market is included in our pack

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THE LATINVESTOR

A team specialized in real estate investing in LATAM countries

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Mexico City. If you'd like to learn more about us, you can check our presentation page.

How much money do you need to transfer in total for your Mexico City property transaction?

The total transfer amount for a Mexico City property purchase includes the property price plus additional costs that typically range from 6% to 10% of the purchase price.

Beyond the property cost, you'll need to cover acquisition tax (2% of the property value), notary fees (0.3% to 1.5%), property registration costs (0.125% to 0.25%), and legal fees if you hire an attorney. For a $200,000 USD property, expect total additional costs of $12,000 to $20,000 USD.

As of September 2025, foreign buyers often transfer the full amount in one transaction to avoid multiple wire transfer fees. Some buyers choose to transfer the down payment first, then the remaining balance closer to closing, but this approach increases banking fees.

It's something we develop in our Mexico City property pack.

What currency should you use and how do exchange rates affect your final payment?

Most Mexico City real estate transactions are completed in Mexican pesos (MXN), even when international buyers initially transfer funds in USD or EUR.

Banks typically apply an exchange rate markup of 2% to 4% above the mid-market rate when converting your foreign currency to pesos. For a $200,000 USD transfer, this markup could cost you $4,000 to $8,000 in additional expenses.

Exchange rates fluctuate daily, so the peso amount you receive depends on the rate applied on the day your transfer is processed. To minimize currency risk, some buyers use specialized foreign exchange services like Wise or Remitly, which offer rates closer to the mid-market rate.

Developers and sellers sometimes accept USD-denominated payments, but the final closing documents will reflect peso amounts based on the official exchange rate at the time of transaction.

What are the exact fees charged by Mexican banks for incoming international wire transfers?

Mexican banks charge a standard fee of $5 USD plus VAT (16%) for incoming international wire transfers under $20,000 USD, bringing the total to approximately $5.80 USD.

For transfers above $20,000 USD, many Mexican banks waive the receiving fee, making large property transactions more cost-effective. However, you'll still face fees from your sending bank and potentially from intermediary banks.

The complete fee structure typically includes your home bank's outgoing wire fee ($15 to $25), intermediary bank fees ($10 to $20), and the Mexican receiving bank fee. Total wire transfer costs can reach $40 to $50 for smaller amounts.

Some premium banking relationships offer reduced or waived wire transfer fees, so check with your bank about any available discounts for large real estate transactions.

How quickly do wire transfers clear into Mexican bank accounts?

International wire transfers to Mexico City banks typically clear within 1 to 3 business days, depending on the sending country and banks involved.

Transfers from the United States usually process faster, often clearing within 1 to 2 business days, while European transfers may take 2 to 3 business days. Transfers sent on Fridays or before Mexican holidays may experience additional delays.

Compliance checks can extend processing times, particularly for large amounts or first-time transfers to Mexican accounts. Banks may hold transfers for 24 to 48 hours to verify the source of funds and ensure anti-money laundering compliance.

To ensure timely closing, most buyers initiate wire transfers 5 to 7 business days before their scheduled closing date, allowing buffer time for any unexpected delays.

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What are the daily and monthly transfer limits for SPEI from Mexican banks?

SPEI transfers from Mexican bank accounts have a standard daily limit of 10,000 MXN (approximately $500 USD) for basic account holders as of September 2025.

Premium account holders and business accounts can access higher limits, often ranging from 50,000 MXN to 500,000 MXN per day, depending on the bank and account type. Banks like BBVA Mexico and Santander offer limit increases for verified high-net-worth clients.

Monthly limits vary by institution but typically range from 300,000 MXN to 2,000,000 MXN for individual accounts. Business accounts generally have higher monthly limits that can reach 10,000,000 MXN or more.

To handle large property transactions, you'll need to request a temporary limit increase from your Mexican bank, which usually requires additional documentation and verification of the real estate transaction purpose.

It's something we develop in our Mexico City property pack.

How reliable is SPEI for property transactions in terms of speed and error rates?

SPEI is highly reliable for Mexico City real estate transactions, with a success rate exceeding 99.5% and processing times ranging from minutes to a maximum of 3 hours.

The system operates 24 hours a day, 365 days a year, making it more flexible than traditional banking hours. Most SPEI transfers complete within 30 minutes during business hours and within 2 hours during evenings and weekends.

Error rates are minimal, and when they occur, they're usually due to incorrect account information rather than system failures. Failed transfers are immediately returned to the sender's account with a clear error message.

SPEI provides instant confirmation of fund receipt, giving both buyers and sellers immediate certainty that payment has been completed successfully. This reliability makes SPEI the preferred method for time-sensitive closings in Mexico City.

What escrow options are available in Mexico City and which institutions handle them?

What percentage do escrow services charge in Mexico and is it a flat fee or tiered?

Escrow services in Mexico City typically charge flat fees rather than percentage-based fees, with costs ranging from $2,000 to $8,000 USD depending on the transaction complexity and property value.

For properties under $300,000 USD, expect flat fees between $2,000 and $4,000 USD. Properties valued above $500,000 USD may incur fees of $4,000 to $8,000 USD, reflecting the additional due diligence and documentation required.

Some escrow providers offer tiered pricing: basic escrow services start at $2,000 USD, while comprehensive packages including title research, legal review, and additional protections can reach $8,000 USD or more.

The buyer typically pays escrow fees, though this can be negotiated as part of the purchase agreement. Unlike percentage-based models common in other countries, Mexico's flat-fee structure makes escrow costs predictable regardless of minor price negotiations.

What protections does escrow provide compared to direct wire transfers or SPEI?

Escrow provides significant buyer protection by holding funds until all contract conditions are met, unlike direct wire transfers or SPEI where money is immediately released to the seller.

With escrow, your funds are only released when the property title is clear, all documentation is verified, and any agreed-upon repairs or conditions are completed. Direct transfers offer no such protection once the money leaves your account.

Escrow services also verify that the seller has legal authority to sell the property and that all liens or encumbrances are properly resolved before closing. This protection is particularly valuable in Mexico City where property title issues can be complex.

In case of contract disputes or deal cancellation, escrow funds can be returned to the buyer according to the terms of the purchase agreement. With direct wire or SPEI transfers, recovering funds requires legal action against the seller.

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Which payment method is most commonly accepted by sellers and developers in Mexico City?

SPEI transfers are the most commonly accepted payment method by Mexico City sellers, developers, and landlords for real estate transactions as of September 2025.

Developers prefer SPEI because it provides instant confirmation of payment and eliminates the uncertainty of international wire transfer delays. Most Mexican sellers have SPEI-enabled bank accounts and are familiar with the system's reliability.

International wire transfers are widely accepted by sellers working with foreign buyers, particularly in neighborhoods like Polanco, Roma Norte, and Condesa where international investment is common. However, sellers may add a premium to cover currency conversion costs.

Escrow is increasingly accepted for high-value transactions above $300,000 USD, especially when recommended by reputable real estate attorneys or when buyers specifically request this protection method.

It's something we develop in our Mexico City property pack.

How do taxes, notary costs, and closing fees vary by payment method?

The payment method you choose does not affect the core taxes and notary costs, but additional fees vary significantly between wire transfers, SPEI, and escrow.

Acquisition tax (2% of property value), notary fees (0.3% to 1.5%), and property registration costs (0.125% to 0.25%) remain the same regardless of how you pay. However, your payment method adds its own layer of costs.

Wire transfers add $15 to $45 in banking fees plus exchange rate markups. SPEI transfers add minimal fees (under $1 USD equivalent). Escrow services add $2,000 to $8,000 USD in protection fees.

For a $200,000 USD Mexico City condo, your total closing costs would be approximately $16,000 to $24,000 USD including taxes and fees, with the payment method adding anywhere from $1 (SPEI) to $8,000 (escrow) to this base amount.

What legal documentation and proof of funds do you need for each payment method?

1. Bank statements: 3-6 months of statements showing sufficient funds and income sources
2. Government-issued ID: Valid passport or national ID card with Mexican immigration status if applicable
3. Tax identification: RFC (Mexican tax ID) or foreign tax ID number depending on transaction size
4. Source of funds documentation: Employment verification, business income records, or investment account statements
5. Wire transfer receipts: Official confirmation from sending bank showing transaction details and completion
6. Currency exchange records: Documentation of exchange rates used if converting from foreign currency
7. Anti-money laundering compliance: Signed declarations regarding fund sources as required by Mexican banking regulations

Are there specific compliance requirements for large transfers in Mexico City real estate?

Large transfers above $10,000 USD equivalent trigger enhanced compliance requirements under Mexican anti-money laundering regulations as of September 2025.

You must provide detailed source of funds documentation, including bank statements, employment verification, or investment account records showing how you accumulated the money. Mexican banks may request additional verification for transfers exceeding $50,000 USD.

Foreign buyers must often obtain an RFC (Mexican tax identification number) for property transactions, regardless of the payment method used. This requirement applies to most real estate purchases by non-residents.

Notaries in Mexico City are required to verify compliance with these regulations before completing property transfers, so prepare all documentation in advance to avoid closing delays.

Which payment method offers the best exchange rates for foreign currency?

SPEI transfers typically offer the best exchange rates because they avoid the multiple currency conversions and markups associated with international wire transfers.

If you can establish a Mexican bank account and transfer funds through specialized foreign exchange services before using SPEI, you'll often achieve exchange rates within 0.5% to 1% of the mid-market rate, compared to 2% to 4% markups on direct bank wires.

International wire transfers through traditional banks usually provide the worst exchange rates, with markups that can significantly increase your total cost. However, they remain the most straightforward option for buyers without Mexican banking relationships.

Escrow services sometimes partner with competitive foreign exchange providers, potentially offering better rates than direct bank wires while maintaining transaction security.

It's something we develop in our Mexico City property pack.

What are the security risks associated with each payment method?

Direct wire transfers and SPEI carry the highest security risk because funds are immediately and irrevocably transferred to the seller's account with no recovery mechanism if problems arise.

Wire transfer fraud is a significant concern in Mexico City real estate, particularly through email interception where fraudsters provide false account details for final payments. Always verify account information through multiple channels before sending funds.

SPEI transfers, while fast and reliable, offer no buyer protection once completed. If you discover property title issues or contract breaches after payment, recovering funds requires legal action against the seller.

Escrow provides the strongest security by holding funds until all conditions are met and verified. This protection is particularly valuable in Mexico City's complex property market where title issues and documentation problems can emerge during the closing process.

How do processing times affect your closing schedule for each method?

What backup payment options should you prepare for Mexico City closings?

Prepare at least two payment methods for your Mexico City property closing to avoid delays caused by technical issues, banking problems, or compliance holds.

If your primary method is an international wire transfer, have a backup plan such as a cashier's check from a Mexican bank or access to SPEI if you have a local account. Many experienced buyers establish Mexican bank accounts specifically for this purpose.

Keep some USD cash available for immediate expenses like notary fees, attorney payments, or unexpected closing costs that may not be included in your main transfer. Most Mexico City closing offices accept cash for smaller fees.

Consider having a trusted local contact who can provide temporary bridge funding if your international transfer faces unexpected delays, particularly important for competitive markets where closing date flexibility is limited.

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.

Sources

1. Wise - International Wire Transfer Guide
2. Rapyd - SPEI Mexico Documentation
3. DolarApp - International Transfer Fees
4. Tipalti - International Wire Transfer Guide
5. Wise - Wire Transfer Fees Analysis
6. DolarApp - Bank Transfer Limits
7. MyCasa - Mexico Real Estate Escrow Guide
8. Secure Title Latin America - Mexico Services
9. Mexico Law - Escrow Overview
10. Stripe - Mexico Bank Transfers Guide