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What costs can I expect?
Welcome! In this post, I’ll be breaking down the costs involved in purchasing property in the Riviera Maya, so you’ll know exactly what to expect—no surprises along the way.
First things first: as a buyer, you don’t need to pay your realtor directly. Realtors earn a percentage of the sale, which is standard practice across the region.
It’s also important to note that the Riviera Maya doesn’t have an MLS (Multiple Listing Service), making it crucial to work with a knowledgeable, licensed broker. Unfortunately, many unlicensed brokers operate in the area, so partnering with a reputable professional (Such as Naay Nahil!) is essential to ensure a smooth and secure buying process.
The costs you need to consider are the closing costs, which I will break down. Closing costs vary but usually fall between 8-11%. They vary because some costs are fixed while others depend on the value of the property. This may seem quite high but it is offset by low property tax, which is about 0.1% of the value of your property per year. Here is a breakdown of the closing costs:
- Lawyers’ fees – Whilst not mandatory we always advise you to hire a local real estate lawyer to protect your interests. The lawyers will review the contracts, gather all the relevant property documentation and the property background checks, setup your Fideicomiso (foreigners only – see next blog post for information), setup an escrow (if applicable), and liaise with notary to setup the deed signing. The fee for your lawyers will usually be about $3,000. We can provide reputable lawyers for you to chose from and remember, initial consultations are free!
- Property acquisition tax – 3%.
- Notary fee – The notary will ensure the all documentation is in place, the sale is signed registered correctly and ensure the property is appraised correctly. The notary fee varies depending on the value of the property but it will usually be between 2-4%.
- Fideicomiso (foreigners only). The Fideicomiso will be setup by your lawyer and is usually around $2,200.
- Escrow services – If you are purchasing a presale you will have to make payments directly to the developers account, however with a resale we recommend using an escrow account to ensure funds are protected. The costs for setting up an escrow are around $650 and most lawyers will provide this service.
I hope you found this information useful and if you would like to discuss in more detail, please don’t hesitate to contact us!
