Ready to close on a real estate purchase in Mexico?
Consult with your lawyer to obtain an estimate for the closing costs to avoid any unexpected expenses. Mexico's closing costs may seem higher than the rest of North America but in the future, owning property is significantly cheaper in Mexico; from maintenance to property taxes, you will save money and be satisfied with your investment.
The closing costs will depend on many factors such as the location of the property, the value, as well whether you are setting up a fideicomiso or not, but on average, it is 5-9% of the purchase price.
These costs include all the following:
- Acquisition taxes – depending on the state is 2-4%
- The permit from the Minister of Foreign Affairs
- Establishing a fideicomiso, including a setup and the first annual fee
- Registration of the title deed in the Public Registry
- Prorated predial - property taxes
- Lawyer fees
- Notary fees
Since many taxes and fees, including capital gains tax, are based on a percentage of the property's purchase price, some sellers would prefer to register the property at a lower price and coax the buyer to agree by stating their taxes and fees will be lower. But the buyer needs to register the correct price because when they sell in the future, the capital gains will be much higher based on a false profit.
If you are interested in investing in Mexican real estate, contact us, from purchase to closing and obtaining the title deed; we are here to assist you. Send your inquiry to info@Kananlawyers.com.