Explanation of Closing Costs
For a $2.5 million USD property purchase in Mexico, taking into account an exchange rate of $17.00 pesos per dollar, the buyer should anticipate various costs.
These include Trustee Fees (charged annually and upfront, with $1,000 for a property of this value), a Foreign Affairs Permit (up to $1,100), National Foreign Investments Registration (between $285 to $330), Notary Public Fees (calculated based on a fee schedule, with a potential reduction in rate for high-value properties), and a Property Acquisition Tax (2% in Nayarit, varying in Jalisco).
Other costs include Appraisal and Division charges (1% for properties valued over $500,001), Public Registry Rights (varying by state, capped at $6,952 in Nayarit), No Liens Certificate charges (typically under $60), and other charges such as administrative costs or travel expenses (usually not more than $767).
There may also be costs for Title Insurance (0.5%-0.7% of the transaction value) and opening an Escrow Account ($500). For a property of this magnitude, the estimated closing costs when constituting a trust are roughly 3%-3.5% of the property value. It’s advisable to consult a notary or a qualified Real Estate Agency for precise calculations.
- Trustee Fees: $1,000 (charged annually and upfront).
- Foreign Affairs Permit: Up to $1,100.
- National Foreign Investments Registration: Between $285 to $330.
- Notary Public Fees: Varies based on the property value, with potential reduction for high-value properties. Consult your notary for an exact figure.
- Property Acquisition Tax: 2% in Nayarit, varies in Jalisco. Consult your notary for an exact figure.
- Appraisal and Division charges: 1% for properties valued over $500,001.
- Public Registry Rights: Varies by state, capped at $6,952 in Nayarit.
- No Liens Certificate charges: Typically under $60.
- Other charges: These include administrative costs or travel expenses. Usually not more than $767.
- Escrow Account: $500 to open an account.
Estimated closing costs for constituting a trust for a property of this value: Roughly 3%-3.5% of the property value.
Please note that these are approximate figures and could vary. For precise calculations, it’s advisable to consult a notary or a qualified Real Estate Agency.