What Closing Actually Costs in Tijuana

The listing price is not what you pay. In Mexico the buyer carries most of the closing costs, and inside the restricted zone — which includes all of Tijuana — there is an extra layer because of the bank trust.

Plan on 7 to 10 percent of the purchase price on top of the price itself.

Here is where it goes.

The acquisition tax

A local transfer tax on the property, paid by the buyer. It is typically the largest single line after the price, and it is not negotiable — it is a percentage set by the municipality.

The notary

In Mexico a notario público is not a clerk. They are a highly regulated attorney who verifies title, calculates and withholds taxes, and creates the public deed. Their fee is a percentage of the transaction.

You can choose your notary, and it is worth doing. A good one catches the problem before it becomes yours.

The fideicomiso — only inside the restricted zone

Two costs, one at the start and one every year:

Setting it up: commonly in the range of 500 to 1,500 USD, depending on the bank.

Annual trustee fee: commonly 500 to 700 USD per year, for as long as you hold the property.

The SRE permit: a federal permit for a foreigner to acquire in the restricted zone, in the range of 21,000 to 22,000 pesos.

⚠️ Banks differ, and the annual fee compounds over decades. Ask what the annual fee is before you choose the bank, not after.

The registry and the paperwork

Recording the deed in the Public Registry, plus certificates the notary must obtain: no-lien certificate, appraisal, water and property-tax clearances. Individually small, collectively a real number.

Title insurance — optional, and worth considering

Not customary in Mexico, but available from U.S. underwriters like First American and Stewart, generally in the 1,500 to 3,500 USD range.

For a first purchase in a foreign registry, many American buyers find it buys the peace of mind they are used to at home. It is the one line on this page that is genuinely optional.

What you do not pay

The real estate commission is customarily paid by the seller.

Capital gains tax (ISR) is the seller's, calculated and withheld by the notary at closing. It matters to you only because a seller who did not expect it may try to renegotiate late.

Two things that surprise Americans

There is no escrow the way you know it. Mexico has no standard escrow culture; funds usually move through the notary or a formal escrow service you arrange. If someone asks you to wire the full price directly to a personal account, stop.

You cannot get a U.S. mortgage on it. U.S. lenders will not take Mexican collateral. Mexican financing for foreigners exists but runs around 6 to 9 percent with 30 to 50 percent down.

Ask for the number in writing

Before you sign anything, ask the notary for a written estimate of closing costs for your specific property. It is normal to ask and it is normal to receive.

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Figures are typical ranges as of 2026 and are not a quote. Tax rates, bank fees and permit costs change, and vary by property value and municipality. The notary handling your transaction gives you the real number.