What expenses should you consider when buying property in Mexico?
(Beyond the price you see in the listing)
One of the most common mistakes I see—especially among first-time buyers in Mexico—is assuming that the listed property price is the only cost to think about.
And honestly, it makes sense. Most listings only show the sales price and nothing else.
But like any important legal process, buying a home in Mexico comes with additional costs that are good to understand from the beginning.
How much extra should you plan for?
My general advice is to have an additional 3% to 4% of the property price saved to cover closing costs.
This doesn’t mean you’re paying more “just because.” It means you’re covering all the legal steps and paperwork needed to have the property officially and safely in your name—ready to enjoy, rent, or live in.
What do closing costs include?
Each transaction is different, but here are the most common items usually included in closing costs in Baja California Sur:
Setting up a bank trust (if applicable)
Official appraisal and legal certificates (such as lien-free status, property taxes, etc.)
Notary fees and closing attorney
Initial and annual trust fees
Property registration and municipal paperwork
Property acquisition tax
Document translation, powers of attorney (if needed)
Administrative costs and escrow account management
Some of these are covered by the buyer, while others can be negotiated. But having a clear picture of what to expect is essential.
A little good news?
Here in La Paz, property taxes and utilities (like water, electricity, trash service) are surprisingly affordable.
Many of my clients—especially those from the U.S. or Canada—are pleasantly surprised by how little they’ll pay each year for basic services.
How do I explain this to my clients?
Once a client has signed a purchase offer for a property, I provide a personalized closing cost estimate.
This projection helps them feel prepared and confident about what they’ll need when it’s time to close.
If the client is a seller, I prepare a report showing their estimated net proceeds after closing expenses.
It’s not about overwhelming you—it’s about planning ahead.
Because having a full understanding builds trust from day one.
What I always say:
“In addition to the property price, set aside extra funds for closing costs, utility setup, and possible upgrades. It’s not an extra expense—it’s how you protect your investment.”
Want to know what you'll really need?
Whether you already have a property in mind or you're just starting your search, I can help you estimate what’s truly required to buy with peace of mind.
Reach out anytime—I'm here to guide you through every step.
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