What will your closing actually cost in Playa del Carmen? If you are weighing a beachfront condo, a branded residence, or a villa, the last thing you want is a surprise at the notary’s office. You deserve a clear picture of who pays what, how the notary works, and what changes if you are a foreign buyer. In this guide, you will learn the standard fees, typical allocations, special rules for the coastal restricted zone, a ballpark example, and a simple checklist to keep your transaction smooth. Let’s dive in.
Closing costs at a glance
Closing costs in Playa del Carmen usually fall into five buckets:
- Taxes and public charges: acquisition tax, property tax proration, seller income tax on gains
- Notary and documentation: deed preparation, registration, certificates and searches
- Professional fees: agent commission, appraisal
- Bank or trust-related: fideicomiso setup and annual fees for foreign buyers, mortgage fees if financed
- Miscellaneous: escrow handling, translations, apostilles, powers of attorney
Most items are customary, but they are also negotiable. The notary calculates official amounts and pays taxes and fees at closing.
Who pays what
Local practice in Playa del Carmen commonly looks like this:
- Buyer typically pays: acquisition tax, notary and registration fees, required certificates, appraisal, bank and trust setup, mortgage-related costs.
- Seller typically pays: real estate commission and seller income tax on gains, plus clearing any liens and prorated utilities or property tax to the closing date.
- Everything is negotiable: your purchase agreement should clearly state who covers each item.
Taxes you should expect
Acquisition tax (ISAI)
- What it is: a state-level transfer tax on the acquisition of property.
- Who pays: usually the buyer.
- How it is calculated: a percentage of the property value or assessed cadastral value. The exact rate is set locally, so ask the notary or municipal treasury for the current Quintana Roo method.
Property tax proration (predial)
- What it is: municipal property tax.
- Who pays: the seller usually covers predial up to the closing date. You take over after transfer. The notary will confirm receipts and any arrears.
Seller income tax on gains (ISR)
- What it is: tax on the seller’s profit after allowable basis and deductions.
- Who pays: the seller. For non-resident sellers, the notary or buyer may have to withhold part of the proceeds or obtain a clearance before registration.
- What to know: calculations and exemptions depend on residency, ownership history, and documentation. This is a key area to review with the notary and a tax advisor.
VAT (IVA)
- What it is: VAT generally does not apply to the sale of used residential property. It can apply to new developments or commercial property and to services like agent commissions.
- Who pays: depends on the item. The agent’s commission is a service that carries VAT.
Notary, deed, and registry costs
Notary role and fees
The Notario Público prepares the public deed, verifies documents, collects and pays taxes and fees, coordinates payments, and files for registration. Fees vary with complexity and property value. In practice, notary, deed, and related charges are often a fraction of the price and can range from roughly a few tenths of a percent up to about 1 to 2 percent, depending on the case.
Registration fees
The deed is registered with the Registro Público de la Propiedad. The buyer commonly pays registry fees. These follow tariff tables or a percentage of value set by the authority.
Certificates and searches
Expect line items for items like a lien-free certificate, cadastral certificate, zoning or use confirmations where relevant, and confirmation of utility balances. These are typically fixed-fee items and often fall to the buyer unless negotiated.
Foreign buyers in the restricted zone
Playa del Carmen sits within Mexico’s coastal restricted zone. As a foreign buyer, you usually hold rights through a bank trust, called a fideicomiso, or through a Mexican corporation.
Fideicomiso basics and costs
- Requirement: a fideicomiso is standard for foreigners buying residential property in the restricted zone.
- Setup and annual fees: banks charge a one-time setup fee and an annual administration fee. Market examples have ranged roughly from about USD 1,000 to 3,000 for setup, and about USD 300 to 1,200 per year. Exact amounts vary by bank and change over time.
- Who pays: the buyer pays trust setup and annual fees. The notary coordinates deed and trust registration.
Corporate alternative
Some investors use a Mexican corporation, especially for commercial or multi-unit investments. This comes with entity formation and ongoing compliance. Discuss with your legal and tax advisors to compare structures.
Extra admin for cross-border closings
If you will not attend closing in person, plan for notarized powers of attorney, translations, apostilles, and courier costs. The party who needs the service usually pays for it.
Typical cost ranges and a quick example
Use these ranges as planning guides, then request an itemized quote from your notary for exact numbers. Figures vary by property, bank, and current tariffs.
Assume a purchase price of MXN 5,000,000.
- Seller commission: commonly around 5 percent of the sale price, plus VAT on the commission. Real-world practice can run about 4 to 6 percent and is negotiated in the listing agreement.
- Buyer acquisition tax (ISAI): state transfer tax. Expect a percentage of the price or assessed value in a low single-digit range, set locally. Confirm current rates with the notary.
- Notary, deed, and registration: often between about 0.5 percent and 2 percent of the transaction value, depending on complexity and local fees.
- Seller income tax on gains (ISR): depends on basis, exemptions, and residency. The notary may need to withhold for non-resident sellers.
- Fideicomiso for foreign buyers: setup often quoted in USD, frequently seen around USD 1,000 to 3,000, with annual fees around USD 300 to 1,200. Ask your chosen bank for current schedules.
- Appraisal and municipal certificates: typically a few thousand pesos in total.
- Predial and utilities: prorated to closing. The notary will verify payments and any arrears.
Currency can be MXN or USD. The notary will account for payments and convert as needed for registration and tax payments. Exchange rates can affect final totals.
Closing timeline and steps
- Offer and agreement: sign a promise to purchase or private purchase contract. You will usually place a deposit or earnest money.
- Due diligence: seller provides title documents, predial receipts, no-lien certificates, and condo documents. You order an appraisal and any inspections.
- Notary engagement: select a local notary. They calculate taxes and fees, prepare the public deed, and request needed certificates.
- Tax clearances and withholdings: if the seller is non-resident, the notary may require withholdings or a tax clearance before filing.
- Signing and disbursement: sign at the notary’s office. Funds are disbursed to the seller after official taxes and fees are covered.
- Registration: the notary files with the public registry. Registration can take days to weeks.
- Post-closing tasks: the buyer updates predial and utilities, and ensures the fideicomiso administration is in place.
Due diligence checklist
Use this to keep your file complete and avoid delays:
- Current title or deed and a certificate of no liens
- Recent predial receipts and water or utility confirmations
- Cadastral certificate and matching cadastral key
- Condominium bylaws, current balances, and any special assessments
- Confirmation of permitted use, including any short-term rental rules in the building
- Bank trust or financing fee schedules and expected timelines
- An itemized closing-cost estimate from the notary, including any seller tax withholding
- A consultation with a Mexican tax advisor for ISR questions
Budgeting tips to avoid surprises
- Get the notary’s estimate early. Ask for a written, itemized quote of all taxes, fees, certificates, and any withholdings.
- Clarify developer vs. buyer obligations. New-builds sometimes shift certain fees or set deadlines. Ask what the developer covers.
- Confirm HOA balances and assessments. Request written confirmation of any special assessments or reserves that may be prorated.
- Plan for the trust. If you are a foreign buyer, request current fideicomiso pricing and processing times from your chosen bank.
- Address currency risk. Ask how exchange rate calculations will be handled for tax payments and registry fees.
- Negotiate allocations. If you want the seller to share certain costs, put it in the purchase agreement.
Ready to run the numbers on a specific property or developer unit and map out the exact steps? Our team provides bilingual guidance on trust structures, developer closings, and itemized estimates so you can move forward with confidence. Connect with the concierge team at ÉLEVÉE Legacy Collection to start your plan.
FAQs
Who pays closing costs in Playa del Carmen?
- Buyers commonly cover acquisition tax, notary and registration, and trust or financing fees, while sellers typically pay the agent commission and their income tax on gains. All items are negotiable.
How much are closing costs as a percentage?
- For sellers, commissions often run about 4 to 6 percent plus VAT on the commission. Buyers can expect transfer tax plus notary and registration that together may add a few percent, depending on tariffs and property value.
What does the notary do in a Mexican closing?
- The notary prepares the deed, verifies documents, calculates and pays taxes and fees, coordinates payments, and files the deed with the public registry to finalize legal title.
Do foreigners pay extra fees in Playa del Carmen?
- Foreign buyers in the coastal restricted zone usually use a bank trust. Expect a one-time setup fee and an annual administration fee, plus any translation or power of attorney costs if you sign from abroad.
How long does closing take in Playa del Carmen?
- Timelines vary, but plan on several weeks from contract to deed. Documentation, tax clearances, bank trust setup, and any mortgage conditions can affect timing.
Can I negotiate who pays what?
- Yes. While there are customs, allocation is negotiable. Put the agreement in writing in your purchase contract.
Are there hidden fees I should watch for?
- Watch for unpaid utilities, HOA balances or special assessments, and unrecorded liens. A thorough notary process and complete due diligence help prevent surprises.
