Property Taxes and Closing Costs in Baja California Sur, Explained
One of the pleasant surprises for a lot of buyers moving from the U.S. or Canada is how favorably annual property taxes compare here. Closing costs, on the other hand, deserve a real, upfront conversation so nothing catches you off guard.
Annual property tax (predial)
Mexico’s annual property tax, known as predial, is assessed based on the government’s registered value of the property rather than current market value, and is typically a small fraction of what equivalent U.S. or Canadian property tax bills run. Many owners pay it once a year, often with an early-payment discount if settled in the first months of the year.
Closing costs
Expect to budget for notary fees, an acquisition tax charged as a percentage of the purchase price, registration fees with the Public Registry of Property, and, for foreign buyers, the setup cost of the fideicomiso bank trust. Combined, these typically run in the mid-single-digit percentage range of the purchase price, though your notary will provide an exact breakdown for your specific transaction.
Ongoing costs beyond taxes
Annual fideicomiso bank fees, HOA dues where applicable, and routine maintenance should all factor into your ongoing cost picture, not just the one-time closing costs.
The bottom line
Baja California Sur’s property tax structure is genuinely favorable compared to what most foreign buyers are used to, but closing costs are real and worth planning for in advance rather than discovering at the closing table.
Want an exact cost estimate for a specific property? Contact me directly and I will connect you with a trusted notary for precise numbers.