Quick Answer
In Mexico, the buyer pays most closing costs including acquisition tax, notario fees, fideicomiso setup, appraisal, and legal fees (4-8% of purchase price). The seller pays the real estate commission (5-8% of sale price), capital gains tax, and their own legal representation. This split is standard but can be negotiated as part of the purchase agreement.
Detailed Answer
In Mexico, closing costs are split between buyer and seller, with the buyer bearing the larger share. The buyer pays the acquisition tax (ISAI, 2-3%), notario fees (0.5-1.5%), fideicomiso setup ($2,000-$3,000), property appraisal ($300-$500), legal fees ($1,500-$4,000), and title insurance if elected ($1,000-$2,000). Total buyer closing costs are 4-8% of the purchase price. This is comparable to buyer closing costs in many US states.
The seller pays the real estate agent commission (5-8% of sale price), capital gains tax (up to 35% of net gain with deductions), and their own legal representation. The seller's total costs can range from 8% to 15% of the sale price depending on their capital gains situation. This buyer-seller cost split is the standard in Mexico but can be negotiated — for example, a buyer might request the seller contribute toward closing costs as part of the purchase agreement.
Our team provides a transparent cost breakdown for both sides of every transaction, ensuring our buyers understand exactly what they will pay and when. There should never be a mystery cost at the closing table. Contact us for a detailed estimate or visit our FAQ hub for more on closing costs.