Who Pays What When Buying or Selling Property in Mexico?

A 2026 guide to real estate transactions in Los Cabos, with real figures and professional recommendations

By Yolanda Ramos – Team Leader at Tu Casa Cabo

📍 Introduction: clarity before you sign

When buying or selling a property in Los Cabos, one question always comes up: “Who pays for what?”

Answering it early is essential, because a smooth, conflict-free closing starts with knowing exactly which costs belong to the buyer and which to the seller.

Here’s a clear guide based on our day-to-day experience with real transactions, with updated figures and recommendations from our legal team at Tu Casa Cabo.

🧾 What does the seller pay?

1. 🧮 ISR (capital gains tax)

• Applies if you sell for more than you paid.
• Variable rate from 1.9% to 35% on the net profit.
• Can be reduced or waived if it’s your primary residence and you meet SAT requirements (personal use, valid INE, no sale in the last 3 years, and a UDIS cap).

2. 📜 Legal certificates and statements

• Certificate of no liens
• No-debt certificates for water, property tax, and HOA fees
• 💰 Estimated cost: $2,000 – $5,000 MXN

3. 📜 Real estate commission

• In Los Cabos, the standard range is 6% to 10% + VAT, depending on the property type, complexity, or if it’s a luxury listing.
• This commission is tax-deductible if properly invoiced.

4. 🔙 Mortgage cancellation (if applicable)

💰 Approx. $10,000 – $15,000 MXN. Includes the deed and registering the cancellation with the Public Registry.

💸 What does the buyer pay?

1. 🏛️ Notary and deed fees

• Notary fees, certifications, registration rights, and the official recording of the transaction.
• 💰 Ranges between 3% and 5% of the sale price.

2. 💼 ISAI (property acquisition tax)

• In Baja California Sur (Los Cabos), ISAI equals 3% of the cadastral value or the transaction value, whichever is higher.
• 💡 This tax is always paid by the buyer and settled with the deed.

3. 📋 Professional appraisal (one or two, depending on the case)

• Estimated cost: $5,000 – $10,000 MXN, depending on the property’s value and complexity.
• If the buyer is financing through a bank, Infonavit, or another lender, two appraisals are typically required: one for the bank and one for tax purposes.

🔍 At Tu Casa Cabo, we help you manage both with certified appraisers.

4. 🔒 Escrow account (recommended)

• A neutral fiduciary account that holds funds until all contract conditions are met.
• 💰 Cost: $500 – $1,200 USD, usually covered by the buyer.
• 💡 Highly recommended for international or high-value transactions.

5. 📜 Closing office / legal coordination

• Handles document collection, scheduling, translations, and legal support throughout the process.
• 💰 In Los Cabos, this costs between $800 and $1,000 USD, and is especially helpful for foreign buyers.

6. 📑 Bank trust / fideicomiso (only if the buyer is a foreigner)

• Setup: $2,500 – $4,500 USD
• Annual maintenance: $500 – $1,000 USD
• 🔐 Mandatory for foreigners buying within the “restricted zone” (within 50 km of the coast).
• With this trust, the buyer has full rights to use, sell, and pass on the property as inheritance.

📎 What about property tax, water, and other services?

👉 The seller must deliver the property free of outstanding debts. This includes:

• Property tax (predial)
• Water (OOMSAPAS)
• Electricity (CFE)
• HOA or condo fees

💡 These are calculated up to the day of signing and prorated if applicable.

🧠 Closing tips

• ✅ Define all costs upfront in the purchase agreement (promesa de compraventa)
• ✅ Don’t sign without legal advice and notary review
• ✅ Use an escrow account and legal coordination if buying from abroad
• ✅ Secure your appraisals before signing the deed (especially with financing)

🤝 Conclusion: financial clarity, successful closing

Knowing who pays for what is key to avoiding misunderstandings, speeding up closing, and protecting your interests.

👉 At Tu Casa Cabo, we guide you every step of the way with clarity, legal backing, and a strategy to maximize both your investment and your peace of mind.

📧 Buying or selling? We'll help you calculate your real costs

📩 Email us: hola@tucasacabo.com
📅 Book a personalized appointment with Yolanda Ramos: https://calendly.com/yolanda-ramos-tucasacabo/30min