Closing Costs in Mexico, Part 1

Many people who go to purchase a home in Mexico are shocked by the amount of closing costs. Don't let the closing costs scare you! Closing costs are a one-time expense, as opposed to property taxes which are paid annually. The good news is that property taxes (predial) are .1% of the property value.

Imagine that your property is valued at $500,000 USD.

Your property taxes if you lived in California: $5,000 USD/year.
Your property taxes for the same house if you lived in Mexico: $500 USD/year.

As you can see, what you "lose" on closing costs, you quickly make up in property tax savings.
The following is a list of closing cost charges in Mexico:

Foreign Ministry Permit (SRE)

Registration in the Foreign Investments Registry

Trust Set Up Fee (for purchase in the restricted zone)

Trust First Year Fee

Escrow Fee

Notary (notario) Fee

Local Transfer Tax

Registration in the Public Registry Trust

Certificate of Freedom of Liens

Castastral Appraisal

Estimation of Home Value