Buying in Puerto Vallarta & Riviera Nayarit
Closing Costs and Property Taxes in Mexico
Buyers in Puerto Vallarta usually pay 5% to 8% of the price in closing costs. Owners then pay a modest yearly property tax, and sellers face their own costs when they sell.
This guide breaks down what each side pays, with a worked example. Every figure is an estimate: the notario handling your transaction gives the exact amounts before you sign.
What buyers pay at closing
The buyer pays the closing costs in a Mexican sale. They are collected by the notario on the day you sign.
| Item | Typical amount | What it covers |
|---|---|---|
| Acquisition tax (ISAI) | About 2% of price | Transfer tax paid to the municipality. |
| Notario fees | About 1% to 1.5% | Deed, tax calculation and registration of the sale. |
| Registry, certificates and appraisal | About 0.5% to 1% | Recording the deed, no-lien and no-debt certificates, official appraisal (avalúo). |
| Fideicomiso permit and setup | From about US$3,000 | Federal permit and bank trust for foreign buyers in the restricted zone. |
| Legal, escrow and other | Varies | Optional buyer attorney, escrow service and bank fees. |
| Typical total | About 5% to 8% | Higher as a share of price on lower-priced homes, because the trust costs are fixed. |
Worked example: a US$500,000 condo
Acquisition tax about US$10,000, notario about US$6,250, registry, certificates and appraisal about US$3,500, fideicomiso permit and setup about US$3,500, legal and other about US$2,000. Estimated total: about US$25,250, or a little over 5% of the price. The figures are illustrative.
Yearly ownership costs
- Property tax (predial), paid to the municipality and based on the assessed value, usually far below market value.
- Annual trust fee, about US$500 to US$800 a year if you own through a fideicomiso.
- HOA fees for condominiums, which vary widely by building and cover common areas, security and amenities.
- Utilities and insurance, plus property management if you rent the home.
What sellers pay
- Real estate commission, usually 6% to 8% of the sale price, plus 16% IVA. The exact rate depends on the price bracket of the property and is set in your listing agreement. A reputable agency issues a factura for it, and that invoice is a deductible cost for capital gains.
- Capital gains tax (ISR), calculated and withheld by the notario. Residents pay progressive rates of up to 35% on the net gain. Non-residents pay 25% of the gross price, or 35% of the net gain with a legal representative in Mexico.
- Trust cancellation, if the property is in a fideicomiso. The bank sets the fee, commonly around US$1,000.
The details, the primary residence exemption and eight legal ways to reduce the tax are in our capital gains tax guide for sellers. Common seller questions are answered in the seller FAQs.
How exchange rates affect the tax
Prices in Puerto Vallarta are often quoted in US dollars, but the deed records the price in pesos at the official exchange rate on the closing date. Capital gains are calculated only in pesos. If the peso weakened between your purchase and your sale, you can show a taxable peso gain even when your dollar result is flat. Keep your purchase deed and invoices so the notario can apply every deduction you are entitled to.
Common questions
Who pays closing costs in Mexico?
The buyer pays the closing costs: acquisition tax, notario fees, registry charges and any fideicomiso setup. The seller pays the real estate commission, any capital gains tax and the cost of cancelling an existing trust or mortgage.
What is the acquisition tax (ISAI)?
A transfer tax paid to the municipality when title changes hands. In the Puerto Vallarta area it is about 2% of the property value. Jalisco and Nayarit municipalities set their own rates, and the notario calculates the exact amount from the deed value and the official appraisal.
How much is property tax (predial)?
Predial is paid every year to the municipality and is based on the assessed (cadastral) value, which is usually well below market value. Owners commonly find it far lower than property tax in the US or Canada, and many municipalities offer a discount for paying the full year early in January. The seller must show predial is paid up to date at closing.
Who calculates the tax when a property is sold?
The notario. Mexican law makes the notario responsible for calculating and withholding the seller's capital gains tax and paying it to the tax authority (SAT), and for confirming that a seller qualifies for any exemption claimed.
What capital gains tax does a seller pay?
Mexican tax residents pay progressive rates of up to 35% on the net gain. Non-residents pay 25% of the gross sale price, or can choose 35% of the net gain when they appoint a legal representative in Mexico and the sale is formalized before a notary. Our capital gains tax guide explains both and how to pay less.
Is there an exemption for selling a primary residence?
Yes, for Mexican tax residents with an RFC who can prove the property is their home and have not used the exemption in the previous three years. It covers up to 700,000 UDIs of the sale price, about MXN 6.2 million at the October 2026 UDI value, and the sale must be formalized before a notary. Each qualifying co-owner may be able to apply it to their share. Confirm with the notario.
Want the numbers for a specific property?
An agent can prepare an estimate of closing costs for a purchase, or of net proceeds for a sale, before you commit.
General information about Mexican closing costs and taxes as of October 2026, not tax or legal advice. Commission rates vary by the property's price bracket and are agreed in each listing agreement. Rates, fees and requirements change and vary by municipality, bank and transaction. The notario handling your transaction and a qualified accountant can confirm what applies to you.
Reviewed by Brock Squire, Broker and founder of Coldwell Banker La Costa, working the Puerto Vallarta and Riviera Nayarit market since 1986. Updated October 2026.