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Tulum, a jewel of the Riviera Maya, is quickly becoming one of the most attractive places for both lifestyle buyers and investors. While real estate here can be a great opportunity, buying a home in Tulum involves more than just the purchase price. Closing costs, legal requirements, and ongoing fees can surprise many first-time buyers if they’re not prepared.
This guide explains the most important costs and considerations so you know exactly what to expect - and how to plan for them.
Why Closing Costs Matter in Tulum
Closing costs in Tulum are typically paid once the property is delivered and the title deed is signed before the notary. They include legal, administrative, and government fees that ensure proper transfer of ownership. On average, these costs range from 6% to 7% of the property’s value, so budgeting for them is essential.
If you’re comparing opportunities in the real estate market in Tulum, understanding these expenses will help you evaluate whether a property is truly within your budget. For strategies to maximize your returns, see our guide on Tulum real estate investment.
Main Closing Costs in Tulum
1. The Role of the Notary Public
In Mexico, a notary public (notario público) is not just a witness - they are trained legal professionals who validate real estate transactions. They verify the property’s legal status, check for debts, and formalize the ownership transfer.
- Cost: 1.5% – 2% of the purchase price.
2. Property Transfer Tax
The property transfer tax (Impuesto Sobre Adquisición de Inmuebles) is one of the largest closing costs.This tax is levied by the local government and is based on the property's value. It's a one-time payment made to transfer the title from the seller to the buyer.
- Cost: The property transfer tax in Tulum is 4% of the property's value. For a $300,000 USD property, this equals $9,000 USD.
3. Appraisal Fees
An official appraisal of the property may be required to determine its market value for tax purposes. A certified appraiser usually conducts the process and helps ensure that the buyer is paying a fair price.
- Cost: Appraisal fees can range from $200 to $400 USD.
4. Administrative Fees
Administrative fees include fees for registering the property transaction with the Public Registry of Property (Registro Público de la Propiedad) and all corresponding costs for obtaining necessary certificates related to the transaction.
- Cost: Administrative fees can range from $800 to $1,000 USD.
5. Bank Trust (Fideicomiso) Fees
Foreign buyers purchasing in Tulum (a restricted coastal zone) must use a bank trust (fideicomiso). This gives you full ownership rights while complying with Mexican law.
A Fideicomiso is a legal arrangement where a Mexican bank acts as the trustee, holding the title to the property on behalf of the foreign buyer (beneficiary). The beneficiary has all the rights to use, rent, sell, or pass the property to heirs, just as if they held the title directly. The trust is initially set up for 50 years and can be renewed indefinitely, ensuring long-term ownership.
- Initial Setup Fees:
- $19,950 MXN (Mexican pesos) for the Ministry of Foreign Affairs permit.
- $400 USD + VAT (contract)
- $450 USD + VAT (first annual fee)
- $400 USD + VAT (in case of granting a mortgage guarantee)
- Annual Maintenance Fees: $500 USD - $700 USD per year, depending on the bank.
Advantages of a Fideicomiso
- Full ownership rights: The beneficiary has full control and ownership rights, including the right to use, rent, sell, or bequeath the property.
- Legal protection: The Fideicomiso provides a secure and legal way for foreigners to own property in restricted zones, complying with Mexican laws and protecting national sovereignty.
- Estate planning: A Fideicomiso can simplify the process of transferring property to heirs, as the trust can be structured to automatically pass the property to designated beneficiaries upon the original owner’s death.
Renewal and Transfer of the Fideicomiso
The fideicomiso is initially valid for 50 years but can be renewed for additional 50-year periods. Renewal requires a straightforward application process and payment of a renewal fee. Additionally, if the property is sold to another foreigner, the existing Fideicomiso can often be transferred to the new owner, saving the time and expense of setting up a new trust.
For more details on the bank trust, read our in-depth article covering all essential aspects of owning property in Mexico through a Fideicomiso.
For real estate financing options, check our article on how to finance real estate in Mexico.
6. Homeowners Association (HOA) Fees
If your property is in a residential development or condo project, HOA fees will cover common area maintenance, security, and amenities.
- Cost: HOA fees can range from $50 to $500 USD per month, depending on the size of the property and the services provided by the association.
7. Annual Property Tax (Predial)
Mexico’s property taxes are relatively low. In Tulum the annual property tax is 0.17% of the property's value.
- Cost: For a $300,000 USD property, the annual property tax would be $510 USD.
Discover other important details on purchasing process in our guide on how to buy property in Tulum.
Example: Total Closing Costs
For a $300,000 USD condo in Tulum, here’s a realistic breakdown:
- Notary fees: ~$4,500 USD
- Transfer tax: ~$9,000 USD
- Legal fees: ~$4,500 USD
- Administrative fees: ~$1,000 USD
- Fideicomiso setup: ~$850 USD + $19,950 MXN
Total: ≈ $20,000 USD – $22,000 USD (6–7% of value).
Additional Considerations
- Financing: While most buyers pay in cash, some developers offer direct payment plans. If you’re considering financing, review the options for foreigners in our guide on how to finance real estate in Mexico.
- Investment Outlook: Timing matters. If you’re wondering whether this is the right moment to buy real estate, explore our guide on investing in Tulum real estate.
- Location: Costs vary slightly depending on the area. Learn about the top neighborhoods in our article on key places to invest in Tulum.
Final Thoughts
The process of buying a home in Tulum involves more than signing a contract. By budgeting for notary fees, transfer tax, fideicomiso, and legal services, you’ll avoid surprises and move smoothly into ownership.
Tulum continues to attract global investors, retirees, and lifestyle buyers alike. With preparation, you can focus less on paperwork and more on enjoying your property - and if you planning on buying a home in Tulum real estate, you’ll already be ahead of the curve. For those seeking modern residences with amenities, explore our section of condos for sale in Tulum to find the option that best fits your lifestyle and investment goals.
