Closing Costs When Buying Property in Mexico Through a Fideicomiso

A Guide for Foreign Buyers

Thinking of purchasing your own slice of Mexican paradise? Whether you’re drawn to the stunning beaches of Baja California Sur or other coastal areas, buying property as a foreigner can be a thrilling investment—especially when using a fideicomiso (bank trust) to comply with local regulations. Here’s what you need to know about closing costs, so you can avoid surprises and smoothly finalize your purchase.

1. Key Factors That Affect Closing Costs in a Fideicomiso

  • Exchange Rate: If you’re buying in a currency other than Mexican pesos, fluctuations in the exchange rate will impact your final costs. Since fees are calculated in pesos, any shift in value can affect what you pay in U.S. or Canadian dollars. Keep a close eye on the market and build a bit of extra room into your budget.
  • Property Value: The higher the property price, the larger certain fees—like the Property Acquisition Tax (ISABI) and notary fees—will be in absolute terms. However, with more expensive properties, these costs often represent a smaller overall percentage because some fees are fixed.
  • Transaction Complexity: Purchasing via a fideicomiso may involve additional steps, such as obtaining a permit from the Mexican Ministry of Foreign Affairs (Secretaría de Relaciones Exteriores, or SRE). Local regulations or extra documentation can also influence final costs. Every transaction is unique, so expenses can vary by location and property type.

2. What Do Closing Costs in a Fideicomiso Include?

Property Acquisition Tax (ISABI)

  • Typically 2–3% of the property’s assessed value.

Notary Fees

  • These vary by notary office. Working with a lawyer who has established relationships may help you secure special discounts.

Permit from the Ministry of Foreign Affairs (SRE)

  • Required for properties in restricted zones (within 50 km of the coast or 100 km of a border). In 2025, the permit costs about 20,850 MXN ($1,050 USD), subject to the exchange rate.

Fideicomiso Fees (2024)

  • Setup Fee: Approximately $464–$522 USD, depending on the bank.
  • Annual Fee: Starts around $464 USD, again depending on the bank.
  • Total First-Year Estimate: Around $1,000 USD to establish and maintain a new fideicomiso.

Technical Documentation

  • Varies based on the property’s value and local government fees. You’ll typically need:
  • Proof of no outstanding property tax (Predial)
  • Clear title certificate (Libertad de Gravamen)
  • Water and sewer clearance (no debt owed)
  • Property appraisal (Avaluo Pericial)
  • Commercial Appraisal (required starting January 2025)
  • For parcels sold for the first time, you may also need:
  • Ejidal Right of First Refusal (Derecho del Tanto Ejidal)
  • State’s Right of First Refusal
  • Municipal Right of First Refusal

Legal Closing Fees

  • If any of your documents are in a language other than Spanish, they must be officially translated by a court-certified translator authorized in Mexico. Expect to pay around $20–$40 USD per page.

3. Sample Breakdown of Closing Costs

Imagine buying a property in La Paz for $200,000 USD. Here’s an approximate cost distribution:

  • Property Acquisition Tax (2%): $4,000 USD
  • Notary Fees: $2,820 USD (discounted rate through a preferred notary partnership)
  • Fideicomiso Setup & First Year Fees: $1,000 USD
  • SRE Permit: $1,300 USD
  • Legal Closing Fees: $1,160 USD
  • Technical Documentation: $500 USD
  • Translations: $100 USD
  • Approximate Total: $10,880 USD (about 5.4% of the property’s value). Keep in mind, this percentage can change based on location, transaction type, required documentation, and service providers’ fees.

3. Practical Tips

  • Budget Wisely: Plan on allocating 5–10% of the purchase price for closing costs. If exchange rates fluctuate, having extra funds on hand can protect you from last-minute shocks.
  • Seek Professional Guidance: Work with notaries, attorneys, and real estate agents who specialize in foreign-buyer fideicomiso transactions. Their expertise helps streamline the process and ensures full legal compliance.
  • Stay Up to Date on Local Regulations: Familiarize yourself with the rules that apply to foreign buyers. Meeting requirements early on helps you avoid delays and additional costs.
  • Monitor Exchange Rates: Keep a close eye on currency trends. Even small shifts can make a difference in what you’ll pay overall.
  • Communicate Clearly: Make sure you understand every document. Certified translations ensure there are no misunderstandings during closing.

Final Thoughts

Purchasing property in Mexico through a fideicomiso can be a fantastic way to secure a coastal or border-area home—whether it’s for vacation, retirement, or long-term investment. By understanding and planning for closing costs in advance, you’ll minimize surprises and keep the transaction smooth and transparent. With the right professional guidance and a well-prepared budget, you’ll soon be enjoying the many benefits of owning real estate in this beautiful corner of the world.

Ready to take the plunge? Plan your finances, consult the experts, and turn your dream of owning a Mexican property into a reality!