The cost of buying property in Mexico: taxes & fees
Buying property in Mexico comes with various costs that can significantly impact your budget. It's important to understand these one-off and recurring expenses before making a decision.
This guide outlines the main costs associated with purchasing property in Mexico, providing a clear overview that can help ensure you're financially prepared.
One-Off Purchase Costs
When buying property in Mexico, you should consider several one-off costs on top of the property price. These typically include transfer tax, notary fees, and legal expenses.
Transfer tax generally ranges around 2–4% of the property's purchase price, while notary and registration fees can add an additional 1–2%. Legal fees for conveyancing may also apply. Overall, you could plan for a total of 7–10% in purchase costs.
Transfer Tax and Notary Fees
The transfer tax, known as Impuesto de Traslación de Dominio, is payable when the property changes ownership. This rate varies by state and often depends on the property's value.
Notary fees cover the legal process of property transfer. These fees typically fall between 0.5% and 1% of the property's value.
Legal and Conveyancing Fees
Engaging a qualified local lawyer is crucial for navigating the legal landscape of property ownership in Mexico. Fees may vary but generally range from 1–2% of the purchase price.
Always verify the exact fees and engage a lawyer experienced in real estate transactions.
Work Example: Typical Costs
Using the typical median property price in Mexico of €673,500, let's estimate your total costs. If we apply a 3% transfer tax, 1% notary fee, and 2% legal fees, the calculation would be:
- Transfer Tax: €20,205
- Notary Fee: €6,735
- Legal Fees: €13,470
Total Estimated Costs: €40,410 (approx. 6% of purchase price).
Recurring Costs of Ownership
After purchase, you will encounter recurring costs, including annual property tax, community or condo fees, utilities, and insurance.
Annual property tax rates in Mexico can vary significantly, but generally range from 0.1% to 0.3% of the property's value. Utility costs (water, electricity, etc.) and insurance are typically additional.
Mortgage Costs for Non-Residents
Mortgages for non-residents in Mexico can be obtained, but terms and conditions vary by lender. Seeking a qualified local mortgage broker can be beneficial.
Prepare for higher interest rates and possibly a larger deposit requirement than for residents. Review different lending options to find the best fit.
Frequently asked questions
What additional costs should I consider when purchasing property in Mexico?
In addition to the purchase price, consider transfer tax, notary and legal fees, registration, and potential mortgage fees.
How much should I budget for taxes when buying a property in Mexico?
You should generally budget for approximately 7–10% of the purchase price to cover all one-off costs.
What are the typical ongoing costs of owning property in Mexico?
Ongoing costs include annual property tax, community fees (if applicable), utility bills, and insurance.
Can a non-resident obtain a mortgage in Mexico?
Yes, non-residents can obtain mortgages, but expect stricter terms and higher interest rates.
Is it necessary to hire a lawyer when buying property in Mexico?
While not legally required, it is highly advisable to hire a qualified local lawyer to handle the transaction properly.
This guide is general information, not legal, tax or immigration advice. Rules change — verify the current position with official sources and a qualified professional before acting. Last reviewed July 2026.