What's included in closing costs in Mexico
Closing costs in Mexico typically run 6 to 10 percent of the purchase price for foreign buyers. The largest components are the ISAI acquisition tax (a state-level tax that varies by municipality, typically 2 to 3 percent), notario fees (the federally-licensed legal officer who certifies title transfer, typically 0.5 to 1.5 percent on a tapering schedule), the SRE permit fee for foreign buyers in the restricted zone, and the fideicomiso setup fee (about 2,500 USD one-time when a new bank trust is set up). IVA at 16 percent applies to notario fees, appraisal, fideicomiso fees, and title insurance, but not to ISAI, registry, or the SRE permit.
ISAI: the acquisition tax
ISAI (Impuesto Sobre Adquisición de Inmuebles) is a state-level acquisition tax set by each Quintana Roo municipality through its annual Ley de Ingresos Municipal. The rate varies by city: Tulum, Playa del Carmen, and Akumal historically set higher rates than Cancún, Puerto Morelos, and Cozumel. The calculator applies the current published rate per city. The tax is calculated on the higher of the operation value (purchase price) or the assessed value (valor catastral) per Mexican fiscal convention. ISAI does not attract IVA.
Fideicomiso: when it applies
Foreign buyers acquiring residential property within the restricted zone (50 km of any coast or 100 km of any border) hold title through a fideicomiso, a 50-year renewable bank trust. All eight cities MWH covers fall in the restricted zone. The setup fee for a new fideicomiso is approximately 2,500 USD one-time, with annual maintenance of 500 to 700 USD thereafter. If you assume an existing fideicomiso from the seller, the setup fee is skipped, saving 30 to 45 days of closing time as well.
Why this is an estimate, not a quote
Closing costs vary by transaction. Notario fees follow a tapering schedule but the exact figure depends on the notario you select. ISAI rates can be updated by municipal Ley de Ingresos changes annually. Fideicomiso setup fees vary by trustee bank. Always verify final numbers with your notario before signing any binding offer. The figures here are calibrated to conventional 2026 ranges to give you a working estimate, not a settlement quote.