What are the closing costs — and who pays what?
The buyer's side of the ledger: acquisition tax, notario fees, the trust, and the registry — usually 4%–8% on top of the price.
General education, not legal or tax advice. Requirements vary by state, municipality, notario, SAT office, and year — confirm current specifics with your Notario Público, an attorney, and a cross-border accountant before acting.
Why buyers ask
The number on the listing is not the number to own. Buyers are caught off guard by a stack of one-time closing costs — and by learning that the buyer and the seller pay entirely different taxes.
Budget roughly 4%–8% of the purchase price in buyer closing costs on a typical resale, paid through the notario at closing. The largest single item is the acquisition tax (ISAI) — about 2%–4% depending on the state — followed by notario fees, Public Registry and certificate fees, and the appraisal (avalúo). If the home sits in the coastal restricted zone, add the fideicomiso setup and the SRE permit. The buyer generally pays all of these; the seller pays their own capital-gains tax (ISR) and the sales commission. A residential resale carries no IVA.
The one thing to internalize: buyer and seller pay different taxes
This is the single most common surprise. The buyer pays the acquisition tax and the notario/registry costs to transfer and record title. The seller pays income tax (ISR) on their gain and, by local custom, the real-estate commission. They are not split — they are separate bills.
What the buyer pays
- Acquisition tax (ISAI): roughly 2%–4% of the value stated in the deed, set at the state/municipal level. A few states have pushed this higher; Jalisco and Nayarit sit in the usual band. Paid once, at closing.
- Notario fees and disbursements: the notario's professional fee plus the documents they must pull — the no-lien certificate, tax and utility clearances, and the official appraisal.
- Public Registry fee: to record the new deed in your name.
- Avalúo (appraisal): an official valuation; if it comes in materially above the declared price it can raise the tax base.
- Fideicomiso (restricted zone only): a one-time bank-trust setup, the SRE permit, and the first annual trustee fee — several thousand US dollars that an inland fee-simple purchase never sees.
What the seller pays
- Capital-gains tax (ISR) on their gain, withheld by the notario at closing.
- The real-estate commission, customarily the seller's cost in this market.
Why "4%–8%" is a range, not a number
State ISAI rates differ, notario tariffs differ, and a restricted-zone trust adds costs a direct-title purchase never carries. Treat any percentage as orientation and get a written estimate from the notario before you commit.
No IVA on a home
Residential resales don't carry value-added tax. IVA is a commercial-property and business-transaction matter — a separate conversation from buying a place to live.
- "Closing costs are like the 2%–3% I pay at home." Usually higher here once the acquisition tax and — on the coast — the trust stack up.
- "The buyer and seller split the taxes." They don't. They pay different taxes entirely: acquisition tax (buyer) versus capital gains (seller).
- "I'll under-declare the deed value to lower my tax." Under-declaring is illegal, the appraisal and notario constrain it, and it inflates your own capital gain when you later sell.
Practical implications
- Ask the notario for a written closing-cost estimate before you sign the promissory agreement.
- Budget the trust setup + SRE permit separately if the property is in the restricted zone.
- Keep every closing invoice — your acquisition cost and closing fees are deductible against capital gains when you eventually sell.
Reality Check
Puerto Vallarta · Riviera NayaritFederal law
The acquisition tax (ISAI) is a state/municipal tax, so its rate is local. What is federal: the fideicomiso mechanism, the SRE permit, the seller's capital-gains tax (ISR), and IVA policy.
Jalisco considerations
On the Puerto Vallarta (Jalisco) side, ISAI is set under Jalisco/municipal law and the deed records in the Jalisco Public Registry, on Jalisco's notario tariffs.
Nayarit considerations
On the Riviera Nayarit (Nayarit) side, the acquisition tax, registry fee, and notario tariff are set by Nayarit and the Bahía de Banderas municipality — different rate, different registry, same bay.
Puerto Vallarta / Riviera Nayarit reality check
Because almost every bay property sits in the restricted zone, most buyers here carry trust costs that inland buyers avoid — pushing the all-in percentage toward the higher end of the range. Which state's ISAI and registry apply is decided by where the property physically sits, not where the agent's office is.
Practical local implications
Get the notario's written estimate, confirm which state bills the acquisition tax for your address, and add the trust + SRE permit on the coast. Rates move year to year — verify the current ISAI rate for your municipality at the time you buy.
Related
If a bank holds the title, do I really own my property?
The bank trust that lets foreigners own coastal property in Mexico, explained without the myths.
When I eventually sell, what tax will I owe on the gain — and can I reduce it?
The exit tax most buyers don't plan for: how it's calculated, the primary-home exemption's real conditions, and why the paperwork you keep today decides your bill later.
Questions about your situation? Speak with an advisor.