Buying real estate in Mexico is a fantastic investment, but the “sticker price” isn’t the whole story. If you’re coming from the U.S. or Canada, you’ll find that some of the costs and rules work a bit differently down here.
While buying a home in Mexico is pretty straightforward, it’s easy to get caught off guard by closing costs. Many buyers end up paying more than they expected because they didn’t budget for the “extras.” Understanding these fees early on will save you a lot of stress and help you make a smarter move.
Closing Costs: What to Expect in BCS
Closing costs in Baja California Sur can vary depending on where you are. For example, in the Los Cabos area or La Paz, you’re usually looking at roughly 5% to 6% of the purchase price.
If you’re financing the home with a U.S.-style mortgage specifically for foreign buyers, remember to factor in the loan origination fee. This can push your total upfront costs closer to 8% or 9%.
The Golden Rule: In Mexico, the buyer pays all the closing costs, while the seller usually covers the real estate commission.
What’s Included in Those Fees?
Your closing costs generally cover three big buckets:
Acquisition Tax: This is a government tax triggered when the property changes hands—kind of like a transfer tax.
Notary Fees: In Mexico, a Notario Público is a high-level lawyer appointed by the government. They handle the title, verify the legal transfer, and register the sale. You can’t skip this part!
Legal Fees: Most buyers hire their own attorney to do the “due diligence”—basically a deep dive to make sure the title is clean and the paperwork is solid.
Negotiating Like a Local
The asking price in Mexico is rarely the final price. It’s very common to see homes sell for 5% (or more) below list price. We can will be your best friend here, helping you figure out how much “wiggle room” a seller might have based on how long the house has been on the market.
The Perk of “Turnkey” Living
One of the best surprises in the Mexican market is that many homes are sold furnished or even “turnkey.” This means everything from the sofa to the silverware is included. It’s a huge win if you’re moving from abroad and don’t want the headache of shipping furniture or shopping for a whole house at once.
Pro Tip: Always get a written inventory list. You don’t want to find out on moving day that the seller took that beautiful antique mirror you loved!
The “Fideicomiso” (The Bank Trust)
Since Baja California Sur is surrounded by beautiful coastline, you’ll need to set up a fideicomiso.
Because of Mexican law, foreigners can’t own land directly within 100km of the border or 50km of the coast. Instead, a bank holds the title for you in a trust. You still have all the rights of ownership—you can sell it, rent it, or leave it to your kids—but you’ll pay about $2,000 USD to set it up and around $500 USD a year to maintain it.
Property Taxes: The Best Part
After the closing costs, you get a break! Property taxes (called predial) in Mexico are incredibly low. You might only pay a few hundred dollars a year for a beautiful home. Most cities even let you pay online, and if you pay early in the year, you often get a nice discount.
The Baja market is very “foreigner-friendly,” but it’s still a different system. Here is ow we can assist you:
Give you the real breakdown of taxes and fees.
Help you navigate the trust (fideicomiso) process.
Connect you with trusted lawyers and notaries.
The Bottom Line: Buying in Mexico is a dream for many, and with the right team, it’s totally doable. Just budget for that extra 5% to 10% in closing costs, and you’ll be sipping margaritas on your new patio in no time.