Closing costs in Playa del Carmen: what buyers and sellers need to know
For Buyers: What You’ll Typically Pay
When buying property in Mexico, buyers take on most of the closing costs. These can vary depending on the property’s price and location, but here are the most common fees:
1. Acquisition Tax (ISABI)
This is a government transfer tax paid when a property changes hands. In the state of Quintana Roo, the rate is currently 3-4% of the purchase price depending on the Municipality .
2. Notary Public Fees
In Mexico, a Notary Public is a licensed attorney appointed by the government who oversees all real estate transactions. Their job is to ensure everything is legal, recorded properly, and compliant with Mexican law. Their fee is roughly 1.5% of the property value and include registration and admin fees.
3. Legal Fees / Attorney Services
Most buyers hire a real estate attorney to review contracts, perform due diligence, and guide them through the process. These legal fees are usually a fixed amount, around 4000USD. 50% if this is paid up front as a retainer fee so that they can do the title check, review the building documents, and write up the promissory contract for you.
4. Bank Trust (Fideicomiso) Setup
If you’re a foreign buyer purchasing within the restricted zone (which includes Playa del Carmen), you’ll need to set up a fideicomiso (bank trust) unless you're buying through a corporation.
Setup cost: Usually around 2,000 USD
Annual fee: Usually $500–$700 USD/year depending on the fiduciary bank
5. Escrow services
Most buyers use a neutral custodial account for their transactions in this area. Costs are usually based on the transaction price, and start around US$750.
6. Valuation
A new law in August 2024 now requires a valuation to be generated by the SAT (the Mexican tax office). This usually costs around .2% of the property value.
Total Buyer Closing Costs:
Usually fall between 6%–10% of the purchase price depending on the value of the sale.
For Sellers: What You’ll Typically Pay
Sellers in Playa del Carmen have fewer closing costs than buyers, but there are still some important items to budget for:
1. Capital Gains Tax (ISR)
This is the biggest potential cost for sellers. The tax is based on the gain between your purchase price and selling price (minus applicable deductions). Depending on your residency status and whether the property was your primary home, you might qualify for a partial or full exemption. A good accountant or notary can help you evaluate this.
2. Real Estate Agent Commission
Commission rates in Playa del Carmen typically range from 5%–7% of the sale price, and may or may not include VAT (16%). This is usually agreed upon in the listing contract.
3. Letters of no debt.
Here in Mexico the law requires that a property must show that it is clear of all debts at the time of sale. It’s not enough to show the utility bill and the payment receipt, a letter of good standing must be produced from the electricity company, the water company, the government for property taxes, the HOA, and so on. Your attorney will obtain these letters for you if you ask them to. The cost to do so plus the cost of the letters is usually between USD1000-1500
4. Closing your fideicomiso (If Applicable)
If your property is held in a fideicomiso, and the buyer of your property does not need the fideicomiso, or the fiduciary bank does not allow a transfer of rights, then you will need to close your fideicomiso in order to transfer the title. This usually costs around US$2000
5. Notary or Legal Fees (If Applicable)
The seller is responsible for any additional legal fees that they incur (like power of attorney or corporate representation, or ensuring that their paperwork is up to date and ready for the transfer of ownership).
Total Seller Closing Costs:
These can vary widely depending on capital gains tax liability and commission agreements. It’s a good idea to request a closing estimate from your agent or legal advisor.
Final Thoughts
Whether you're buying your dream home or selling an investment property, understanding closing costs is key to navigating the Playa del Carmen real estate market with confidence. Every transaction is different, so working with a qualified real estate team and legal advisor will help ensure that your process is smooth, transparent, and fully compliant with Mexican law.
Have questions about a specific property or want a personalized closing cost estimate? Our team is here to help. Get in touch and let’s walk through your scenario together.
Aarón is a born and raised "chilango". After finishing his university studies, what started as a social service trip became his new home and where he started a family in Playa del Carmen. He enjoys the delicious food and culture of the Yucatan peninsula with his wife, daughter, and son. As a professional, he has made a career as a specialist in social networks and electronic media, helping the companies he has worked for to efficiently achieve all their objectives in the medium.