Closing Costs When Buying a Home in Playa del Carmen, Mérida or Tulum

It’s very common to think that the only upfront cost you need to worry about when buying a home is the down payment (and bank commissions if you’re getting a mortgage)—but guess what? That’s not the case! In addition to your deposit or advance payment, moving costs, furniture and fittings, and of course your repayment capacity, you also need to factor in some very important expenses like these:

Property Appraisal

If your purchase is financed through a lender (bank, SOFOM, INFONAVIT, or FOVISSSTE), they will assign an official appraiser to create the valuation report. You’ll usually pay this fee once the appraisal is completed and the value of the property is determined—since the cost is based on that value. Heads up! In states like Quintana Roo and Yucatán, the appraisal is a mandatory part of the closing process and will be included in the notary’s closing costs.

Loan Origination and Administrative Fees

(If you’re buying with a mortgage): These are fees charged by the lender to grant and manage your loan. Research carefully before choosing a bank.

Notary Fees

The deed transfer and new deed will ALWAYS be the buyer’s responsibility. Ask for recommendations and quotes from different notaries in the city where you’re buying (e.g., Playa del Carmen, Tulum, or Mérida). If you’re buying with a mortgage, your bank must provide a financial breakdown (“corrida financiera”) that estimates this cost. Just like appraisers, banks work with selected notaries.

ISAI, ISABI or Transfer Tax

This is the Real Estate Acquisition Tax paid by the BUYER, regardless of whether the property is new or used. The notary will collect and transfer it to the corresponding tax office. The percentage varies by state, including areas like Quintana Roo or Yucatán.

VAT (Value-Added Tax)

Think real estate doesn’t pay VAT? Think again! If you’re purchasing a commercial property, you must pay the VAT applicable in your region.

Income Tax (ISR) on Acquisition

This only applies in specific cases where there’s a significant difference between the sale price and the appraised value. Always seek professional advice before proceeding.

Miscellaneous Expenses and Services

This includes legal consultations, specific permits, property inspections, and more. You should also consider whether you’ll use an escrow account, hire attorneys, etc. Some local municipal rights may apply, depending on the city or town (like Solidaridad, Benito Juárez, or Mérida). Ask as many questions as needed and request multiple quotes—do all of this BEFORE signing or paying anything.

Fideicomiso (Bank Trust)

As a foreigner buying in the restricted zone (click here for more info), you must also consider the costs related to setting up a fideicomiso.

Although it's hard to set an exact percentage for these extra costs, it’s recommended to set aside between 5% and 8% of the total purchase price. Every case is different and local laws vary, so always plan ahead.

Buying a home is a major decision and should be carefully planned to avoid (unpleasant) surprises at closing. Got questions? We’re here to help!