A very common question in any real estate transaction is who pays what. The general rule in Mexico is simple: the buyer pays the closing/deed costs and the seller pays taxes on their profit.
What the Buyer Pays
- Closing/deed costs (notary fees, certificates, registration)
- ISAI (Property Acquisition Tax)
- Appraisal
- If applicable, mortgage loan expenses
What the Seller Pays
- ISR (Income Tax): it is calculated on the profit obtained from the sale. Exemptions exist for primary residences under certain requirements.
- Real estate commission, if sold through an agency.
- Mortgage cancellation, if the property had a mortgage.
Quick Summary
Buyer: closing/deed costs + ISAI. Seller: ISR + commission. Each transaction has its own particular details, so it's best to get advice before closing.
At SEAX we clearly explain every peso and support you so the transaction is safe for both parties.
Do you have questions about your purchase or sale?
A SEAX Real Estate advisor will guide you with no obligation, backed by the legal support of Saucedo Abogados.
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