Los Cabos Real Estate Closing Cost Calculator
Estimate acquisition taxes (ISAI 2%), Notario Público legal fees, Fideicomiso (bank trust) setup, and registry recording under Mexican law.
Itemized Closing Expense Schedule
| Line Item / Expense | Legal Purpose | Estimated Fee |
|---|---|---|
| Transfer Tax (ISAI - 2.0%) Impuesto Sobre Adquisición de Inmuebles (ISAI 2%) | Municipal property acquisition tax mandated by Baja California Sur law. | $50,000 |
| Public Notary Fees (Notario Público) Honorarios Notariales | Legal deed drafting, title search, tax withholding, and state deed execution. | $35,000 |
| Public Registry Recording Derechos del Registro Público de la Propiedad | Government recording fee to register your public deed and protect ownership. | $12,000 |
| Bank Trust (Fideicomiso) Setup Constitución del Fideicomiso Bancario | Establishment fee for 50-year renewable bank trust in the Mexican restricted zone. | $2,250 |
| Ministry of Foreign Affairs (SRE) Permit Permiso SRE | Federal government permit required for foreign citizens to acquire rights in coastal zone. | $1,250 |
| Fideicomiso Year 1 Trustee Fee Primera Anualidad de Fideicomiso | First year annual trustee management fee paid to Mexican trustee bank. | $650 |
| Appraisal & Certificates of No Liens Avalúo Comercial y Certificados de No Adeudo | Official tax appraisal, Certificate of No Tax Liens, and water/municipal clearances. | $1,600 |
| Escrow & Settlement Services Servicio de Custodia (Escrow) y Coordinación | Insured neutral third-party escrow account to protect buyer funds until title transfer. | $1,500 |
Understanding Real Estate Closing Costs in Baja California Sur
When purchasing luxury real estate in Los Cabos (Cabo San Lucas, San José del Cabo, the Corridor, Pacific Coast, or East Cape), closing costs differ significantly from the United States or Canada. Here is a clear breakdown of each expense mandated by Mexican federal and state statutes.
1. ISAI Acquisition Tax (2.0%)
The Impuesto Sobre Adquisición de Inmuebles is a mandatory transfer tax levied by the municipalities of Los Cabos and La Paz. It is exactly 2% of the appraised tax value or purchase price (whichever is higher).
2. Notario Público Legal Fees (1.2% - 1.8%)
Mexican Notaries undergo rigorous bar certification. Their fee is governed by state notarial tariffs on a sliding scale. Unlike US notaries who only witness signatures, a Mexican Notario conducts full title searches and certifies clean deed issuance.
3. The Fideicomiso Bank Trust (~$2,250 USD)
Article 27 of the Mexican Constitution restricts direct foreign ownership within 50km of the coastline. The Fideicomiso provides identical rights of private ownership (selling, willing, building, renting) through a 50-year renewable bank trust.
4. Low Annual Predial (Property Tax: ~0.1%)
While closing costs are slightly higher upfront, annual carrying costs in Mexico are extraordinarily low. Municipal property tax (Predial) averages approximately 0.1% per year with generous early-payment discounts in January and February.
Frequently Asked Questions
Who pays closing costs in Mexico: Buyer or Seller?
Customarily, the buyer pays all transfer taxes (ISAI), notary fees, trust setup, and registry recording fees. The seller is responsible for their own capital gains tax (ISR - Impuesto Sobre la Renta) and real estate commissions.
How long does the closing process take in Los Cabos?
A standard cash purchase with a Fideicomiso setup takes between 30 to 45 business days. This timeframe accommodates the SRE permit application, commercial tax appraisal, certificate of no liens (CLG), and final deed drafting.
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