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AVAILABLE IN MEXICO
|
MEXICAN
CLOSING COSTS |
EXPLANATION
OF MEXICAN TAXES AND FEES FOR TRANSFER OF PROPERTY |
(These
fees are paid whether or not you use a loan
to purchase your property)
Closing costs can add up pretty
quickly when purchasing property in Mexico.
Your funds available for a down payment can
be determined after taking closing costs into
consideration. These are the standard closing
costs. The amounts will vary according to the
State you purchase within. Loan fees will be
in addition to these Mexican fees and taxes.
Permit Foreign Ministry (SRE –
Permiso de la Secretaria de Relaciones Exteriores)
– This is a permit that the Notario processes
through their agents. This is required to obtain
your fideicomiso. This is a fixed fee of $10,500
MXP - approximately $1,000 USD.
Registration in Foreign Investments
Registry (RNIE – Registro Nacional
de Inversiones Extranjeras) – The Trustee
has the obligation to process the registration
of the Deed (Escritura Publica) within a 30
day period after the granting. This is a fixed
fee.
Trust Set Up Fee – This
is a one-time initial fee to set up your Trust
(Fedeicomiso). This is required for property
purchased in the Restricted Zone (100 km within
border or 50 km from the coastline). When purchasing
outside the Restricted Zone, a lender may require
a fideicomiso to facilitate the use of a mortgage
loan. A fideicomiso outside the Restricted Zone
is not required under Mexican Law, but may be
required by your lender. The trust is a Fedeicomiso
en Garantia.
Trust First Year Fee – There
is an annual fee charged by the bank to maintain
the Fedeicomiso. This is paid in advance, so
you have to pay for your first year at closing
in addition to your one-time setup fee.
Escrow Fee – This account
is normally set up when you deposit your earnest
money. In Mexico, real estate agents are not
allowed to maintain an “escrow account”
to hold earnest money, as they do in the United
States. A separate escrow account must be set
up through a title company (either Stewart or
First American Title). Funds for the real estate
purchase, as well as loan fees (such as the
appraisal) are put into the escrow account with
specific instructions of how this money will
be disbursed. There are certain fees that are
paid whether the home closes or not, since work
has been done which must be paid for. This is
true of the appraisal, some Notario fees (including
SRE Permit), and Certificados de Libertad o
Gravamen (No Liens Certificate). The fee to
set up this escrow account is $500 to be paid
for by the buyer.
Notario Fees – These
fees are regulated by a fee list authorized
by Notario Law, which is valid in every state.
These fees can be for a lesser amount, but never
for an amount over the fee list. As an example,
the fee list for the state of Jalisco is as
follows (based on 11 MXPesos to 1 USDollar –
actual MXP figures in parenthesis):
From $1,000 (11,000 MXP) to $9,091 (100,000
MXP) = 2.00%
From $9,092 (100,001 MXP) to $18,182 (200,000
MXP) = 1.15%
From $18,183 (200,001 MXP) to $45,455 (500,000
MXP) = .85%
From $45,456 (500,001 MXP) to $68,182 (750,000
MXP) = .65%
From $68,183 (750,001 MXP) to $90,909 (1,000,000
MXP) = .50%
From $90,910 (1,000,001 MXP) to $454,545 (5,000,000
MXP) = .25%
From $454,546 (5,000,001 MXP) and over = .20%
Local Transfer Tax (ISAI –
Impuestos Sobre Transmision Patrimonnial) –
This is equivalent to a state "sales" tax. The
Notario Publico is responsible to charge and
declare this without surcharges. This tax is
usually calculated according to a table, but
the Notario is the final determination. The
tax usually varies between 2% and 2.5 based
on the sales price of your property.
Registry in RPP (Registro Publico de
la Propiedad) – This permit is processed
through the Notario and is based on the sales
price of your property. The Notario process
this through the local Registro Publico de la
Propiedad in the state you are purchasing in.
Certificate of Freedom of Liens
(Certificados de Libertad o Gravamen) –
The Notario has the obligation to check that
the subject property has no liens against it.
This certificate is good for a period of 30
days, and must be brought up-to-date and re-issued
if it expires prior to the closing. A fee will
be charged every time a new certificate is issued.
Estimation of home value for
tax purposes (Avaluo y Deslinde) – This
is used exclusively for tax purposes and will
not be used by the lender. When applying for
a loan, a separate appraisal will be made by
an independent appraiser to determine the value,
which will be used by the lender to determine
the maximum loan amount the lender will grant.
Contact
us to get an estimate of your closing
costs based on the sales price and loan amount
of the property you are looking to purchase.
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