Appraisal and taxes in Mexico are two crucial aspects that every foreign investor must understand before buying property. Whether your goal is a vacation home, a permanent residence, or simply a solid real estate investment, being informed will help you avoid legal issues and unexpected costs.

The importance of the property appraisal

The property appraisal is one of the first and most important steps in the purchase process. This valuation determines the market value of the property and serves as the base for several taxes and registration costs. The appraisal can be carried out through a certified real estate consultant or directly with your notary public. Its cost varies depending on the property’s characteristics, location, and current market behavior. A proper appraisal ensures you are paying a fair price and helps avoid penalties related to undervaluation.

Understanding taxes during the purchase process

The acquisition tax is a one-time municipal tax ranging from 2% to 6.5% of the property’s sale value, depending on the municipality. If there is a difference between the declared purchase price and the appraised value, the tax authority may require a 20% gain tax on that difference. Additionally, the buyer must pay public registry fees, which are calculated based on annual state tariffs, and notary public fees, which usually represent 1.5% to 2% of the property value. These fees cover the legal work, tax calculations, and deed registration.

Annual taxes and fiduciary responsibilities

Property taxes are relatively low in Mexico, but buyers must ensure they are paid up to date. If the property is in a restricted zone, a trust (fideicomiso) must be established through a Mexican bank, and fiduciary fees of around $600 USD per year are typically charged.

Legal certainty through a notary public

Appraisal and taxes in Mexico are not minor details—they are the foundation of a secure investment. That’s why the notary public plays a key role in validating documents, calculating taxes, and registering the title deed properly. At Notaría 129 in Yucatán, we provide comprehensive legal support so you can invest with confidence. Contact us to receive expert guidance and protect your investment every step of the way.