Buying in Mexico

Taxes & Costs

Purchasing property anywhere attracts fees and taxes. In Mexico though, it is often far less than elsewhere.
1. Lawyer fees; these will vary greatly and should be firmly negotiated prior to commencement of services.
2. Deposit for purchase; will be a percentage, anywhere between 10-50%.
3. Trust Permit; this is the permit to set up your bank trust; the cost is $300-$1000 USD.
4. Trust fees; set up is usually about $1000 USD, with annual fees around $500-$1000 USD.
5. Notary fees; 1.5-2.5%
6. Registration fees; 1.5%
7. Topographical costs; these vary; again, negotiate a rate you are comfortable with.
8. Appraisal tax; if the Tax Attorney decides to appraise your property after you purchase and the value at which he deems correct is greater than 10% of the price you paid, you will be required to pay 20% of the difference. This tax is to be paid within 15 days.
9. Acquisition tax; on sale of the property, you are required to pay a 2% (approximate) tax on the sale value (relates directly to your capital gains, cost basis, see below). This tax is paid on sale, donation, transfer or split of the property.
10. Sales tax; at present, no sales tax (VAT) is due on residential properties.
11. Title insurance; this is optional, but wise. Although purchasing is safer than ever, a minimal outlay such as title insurance is worth your peace of mind.
12. Annual "body corporate service fees; if purchasing within a condominium or gated community be sure you understand the fee structure and payments required.