The In-Depth Answer

As a rule of thumb, we advise buyers to expect up to 6% of the purchase value for closing costs. Often, the costs end up only a little over 5%, but they can go as high as 6.5% for more expensive properties.

Normal closing costs consist of:

- the appraisal, transfer, and legal fees, as well as the acquisition tax that is associated with and charged by the notario, all of which add up to about 6%. 

 

-$300 to $500 USD for the buyer's half of the escrow fee.

-$400 to $500 USD for each foreigner named on the deed to receive their SRE permit (required to purchase).

-Perhaps a few hundred dollars more if one or more of the buyers need someone to close for them with a Power of Attorney (POA). If you get a POA here in San Miguel, the cost is usually less than $500 USD. If the Power of Attorney is signed and notarized outside of Mexico and requires an apostille or a trip to a Mexican consulate, the cost will increase, but will probably still be less than $1,000 USD.

- An extra $1,000USD - $2000 USD for your final transfer to cover any fluctuations in the exchange rate, which will affect that portion of the closing costs that are paid in pesos. Unless there are huge changes in the exchange rate between the date that the property was put under contract and the closing date, the majority of this amount is returned to the buyer.

For more info on giving a POA to someone on your behalf, see Do I Have to Be in San Miguel for Closing?