For buyers from the U.S.
What buying in Tijuana actually costs you
In the United States, closing costs are split between buyer and seller. In Mexico the buyer pays nearly all of them. That difference is the number one surprise for American buyers, and it is easier to plan for than to discover late.
Estimate your closing costs
| What you pay for | Estimate (USD) |
|---|---|
Acquisition tax (ISABI) State transfer tax, ~2% of the assessed value | $7,700 |
Notary fees & registration The notary is a public officer here — not optional | $3,850 – $7,700 |
Fideicomiso setup Bank trust. Required for foreign buyers in the restricted zone | $1,000 – $2,500 |
Fideicomiso — SRE permit Foreign Affairs permit, filed by the trustee bank | $1,200 – $1,800 |
Escrow Not legally required in Mexico. Strongly recommended | $500 – $1,000 |
Title insurance Not required either. Most foreign buyers get it | $1,000 – $2,000 |
Legal review Independent attorney reviewing title and contract | $1,000 – $2,500 |
Appraisal (avalúo) Required for the deed and for the tax basis | $400 – $800 |
| Estimated total 4.3% – 6.8% of the purchase price | $16,650 – $26,000 |
These are public reference ranges, not a quote. Actual figures depend on the property, the notary and the trustee bank. We put the real numbers in writing before you commit to anything.
The five questions everyone asks
Can an American actually own property here?
Yes. Tijuana sits inside Mexico's restricted zone — within 100 km of the border and 50 km of the coast — so foreign buyers hold title through a fideicomiso: an irrevocable bank trust. The bank holds legal title, you are the beneficiary with the full right to use, rent, improve, mortgage and sell. The trust runs 50 years and is renewable. It is the standard structure for every foreign buyer on this coast, not a workaround.
Why are the closing costs higher than I expected?
Because in Mexico the buyer pays nearly all of them. In a U.S. transaction those costs are split between buyer and seller; here they are not. The seller pays the agent commission and capital gains tax on their profit — everything else lands on the buyer. This is the single most common surprise, and the reason we put it on its own page.
Is escrow used in Mexico?
It is not legally required, which surprises most American buyers. It is available and we recommend it: funds and documents are held until every condition is met. Same with title insurance — optional here, standard in the U.S., and worth it.
Can I get a mortgage?
Rarely on terms an American would accept. Foreign buyers typically see 50% to 70% loan-to-value at best, with fixed rates around 11% to 12% and an all-in cost closer to 14%. Most foreign purchases in Baja are cash. We would rather tell you that now than after you have flown down.
Who handles the paperwork?
A notary público — a public officer with legal authority, not the notary you know from the U.S. They draft and register the deed. We work with a specific notary, trustee bank and escrow provider, and we will give you their names before you commit to anything.
Want the real numbers for a specific property?
Tell us which one and we will send a written estimate — notary, trust, escrow and taxes, itemized. No cost, no commitment.
Talk to an advisor
Tell us what you are looking for. We answer in English, usually the same day.
Prefer to talk? Message us on WhatsApp — we answer in English.
This is information, not legal or tax advice. Ranges come from public industry sources and reflect typical transactions in Baja California. Your notary and trustee bank determine the final figures.