How Much Are Closing Costs in Los Cabos?
Closing costs for a real estate purchase in Los Cabos typically run between 5% and 8% of the purchase price, paid by the buyer. On a USD 1 million property, that means budgeting roughly USD 50,000 to USD 80,000 above the sale price. The exact figure depends on the property value, the trust setup, and notary fees. This guide breaks down every component so you can budget accurately.
The Main Cost Components
| Cost | Typical Range | Notes |
|---|---|---|
| Acquisition tax (ISAI) | ~2% of value | Paid to the municipality |
| Notary fees | 1–2% | Sliding scale by value |
| Fideicomiso setup | $1,000–$2,000 | One-time |
| Registration & certificates | 0.5–1% | Public registry |
| Appraisal | $400–$800 | Required for tax basis |
The Acquisition Tax (ISAI)
The transfer or acquisition tax is the single largest closing cost, generally around 2% of the assessed value. It is paid to the local municipality and collected by the notary at closing.
Notary Fees
In Mexico, the notary public is a highly trained legal official who validates the entire transaction. Notary fees follow a sliding scale and usually fall between 1% and 2% of the purchase price.
Costs Sellers Pay
Sellers are typically responsible for the real estate commission and any capital gains tax (ISR) owed on the sale. Buyers and sellers should clarify in the contract who pays what to avoid surprises at closing.
Ongoing Costs After Purchase
- Annual property tax (predial) — remarkably low, often a few hundred dollars per year.
- Annual fideicomiso fee — USD 500 to 800.
- HOA fees in gated communities such as Palmilla or Querencia.
How to Budget Accurately
Ask your agent for a written closing-cost estimate before you make an offer. A reputable Los Cabos agent will provide an itemized projection so you know your total cash requirement from day one.
Frequently Asked Questions
Who pays closing costs in Mexico, the buyer or the seller?
The buyer pays most closing costs in Mexico, typically 5–8% of the purchase price. The seller usually pays the real estate commission and any capital gains tax.
Is property tax expensive in Los Cabos?
No. Annual property tax (predial) in Los Cabos is very low compared with the United States and Canada, often only a few hundred dollars per year even on luxury homes.
Are closing costs negotiable?
Government taxes and registration fees are fixed, but who pays the commission and certain fees can be negotiated in the purchase contract.
Want an itemized closing-cost estimate for a specific property? Contact Properties in Cabo and a local specialist will prepare one before you make an offer.