Separate the price from acquisition costs
Beyond the property price, expenses may include taxes and duties, deed formalisation, valuation and financing costs. Ask for an itemised breakdown, who pays each item and when. PROFECO highlights the importance of understanding these additional expenses before entering a contract.
Source: PROFECO · Derechos al comprar un inmueble ↗Request a notary’s estimate
Ask for a clear distinction between professional fees, taxes, registry charges, certificates and other applicable items. Contributions depend on the location, valuation basis, transaction and current rules. This guide does not prescribe a transfer-tax rate or a universal closing-cost figure. Check what is included to avoid double counting.
VAT is not the same for every item
Mexico’s VAT Law provides an exemption for sales of land and buildings intended or used as housing; other uses and items may receive different treatment. This does not mean that every service or charge in the transaction is exempt. Ask your notary and tax adviser to review the specific case.
Source: Ley del IVA · artículo 9 ↗When financing or a trust is involved
Request separate estimates for lender fees, valuation, insurance and financing terms. Where a bank trust applies, obtain setup, permit and administration costs, as well as potential future charges. International transfers may involve fees and exchange-rate costs; a US-dollar price does not remove conversion expenses.
Source: NOM-247-SE-2021 · Información y contratos de vivienda ↗Budget beyond handover
Allow for maintenance, special assessments, property tax, insurance, utilities, repairs and furnishing. For rentals, add management, vacancy and applicable taxes. Review condominium statements and rules before assuming that the advertised fee covers everything.
Build a usable budget sheet
Use four columns: item, amount, responsible party and due date. Distinguish firm quotations from estimates. Include a contingency reserve and update the sheet before signing. A clear budget supports informed negotiations and helps preserve liquidity after the purchase.
