Closing costs for property in Baja California Sur (estimate ranges)
Closing costs in Baja California Sur add up from several items: the purchase tax (ISABI), the appraisal, the notario's fees, the bank trust and its permit, and recording. Amounts here are estimates; ask your notario for a written breakdown.
The steps, in order
- The public notario (notario público)
A state-appointed lawyer who drafts and certifies the deed, verifies identities, calculates and collects taxes, and sends the deed to be recorded. - Escrow
A neutral escrow company (often US-based or cross-border) that holds your deposit and the balance until the deed is signed. - Foreign Ministry permit for your bank trust (SRE permit, fideicomiso)
The permit from the Ministry of Foreign Affairs (Secretaría de Relaciones Exteriores, SRE) that lets the bank set up a trust for a foreigner in the restricted zone. - Appraisal and purchase tax
The municipal tax the buyer pays on acquiring property (Impuesto Sobre Adquisición de Bienes Inmuebles). The notario calculates it from an appraisal (avalúo). - Total closing costs
All buyer costs paid at closing. - Closing costs by municipality (all five)
Closing costs in BCS are mostly the acquisition tax (ISABI) set by each municipality, notario fees, the appraisal, registry fees, the trust setup and the SRE permit. The structure is the… - Moving the money: exchange rate, wires and paying at closing
Plan how funds travel from your US or Canadian account to the seller: through an escrow company, to the notario's account, or as directed in writing. Decide when to convert to pesos, and… - Sign the deed (escritura)
Signing the public deed in which the seller transfers the property to the bank as trustee for your benefit, and the trust contract is formalized. - Record the deed at the public registry (RPPC)
The notario records the deed at the Registro Público de la Propiedad y del Comercio of BCS, on the property's folio real. - Catastro transfer (traslado de dominio)
Updating the cadastral record to the new holder (the bank as trustee, for your benefit). From then on, predial bills come to you.
Common questions
What does a notario do?
A notario público is a senior lawyer appointed by the state who drafts the deed, checks the title, calculates and collects taxes, and records the sale. It's not the same as a US notary.
How much are closing costs?
Estimates commonly range around 4%–7% of the price in BCS, including ISABI, notario, appraisal, registry, trust and permit fees. Ask the notario for an itemized estimate.
What is ISABI?
The municipal acquisition tax paid by the buyer, set by each municipality's revenue law. It's commonly a few percent of the higher of price or appraisal.
Is ISABI the same in every municipality?
No. La Paz, Los Cabos, Comondú, Loreto and Mulegé each set their own rate and rules every year.
Why does the appraisal matter?
ISABI is charged on the higher of the price or the appraisal, and the appraisal also supports your cost basis.
Should I declare a lower price to save tax?
No. It's illegal, and it raises your capital-gains tax when you sell.