What Are the Typical Closing Costs for Sellers in Los Cabos?

When selling a property in Los Cabos—whether it’s a beachfront villa in Palmilla or an investment condo in Cabo San Lucas—it’s crucial to understand your financial obligations before you accept an offer. Closing costs in Mexico differ from those in the U.S. or Canada, and sellers unfamiliar with the system often overlook key expenses that can impact their net proceeds.

At Outliance Real Estate, we prepare every client with a full financial picture, ensuring there are no surprises on closing day. Here’s what you should expect.

In Baja California Sur, the buyer typically covers most of the notary, registration, trust setup, and transfer taxes. However, sellers do carry several specific costs—some of which can be significant, especially for foreign owners.

Main Closing Costs for Sellers in Los Cabos

Capital Gains Tax (ISR)

The most substantial cost for sellers in Mexico. This federal tax is based on the gain (real or calculated) from your original purchase to sale. The rate may be up to 35% of the net gain. 

Proper planning, deductions (with facturas), and use of exemptions—such as the primary residence exemption—can reduce this dramatically. A tax estimate should be prepared before listing.

Real Estate Commission

Sellers pay the listing agent’s commission, typically ranging between 6% to 8% of the final sales price, plus VAT (16%). This includes buyer-agent commission if a co-broker is involved. At Outliance, our commission covers marketing, showings, negotiation, closing coordination, and international exposure tailored to luxury buyers.

Legal & Notary Coordination

Though the buyer covers notary fees, sellers may incur legal advisory costs if engaging a private lawyer to review title status, fideicomiso terms, or tax implications. This is common with luxury properties where legal complexity is higher.

Estimated range: $500–$2,000 USD, depending on the case.

HOA Fees & Outstanding Balances

Sellers must provide proof of up-to-date HOA dues (and a clearance letter from the administrator). Any unpaid balances or penalties must be settled prior to closing.

Also, if HOA fees are billed quarterly or annually, prorated adjustments will be calculated at escrow.

Property Tax (Predial)

Sellers are responsible for paying the current year’s property taxes. If closing occurs mid-year, a prorated adjustment is made between buyer and seller.

While property tax in Los Cabos is relatively low (compared to the U.S.), timely payment and proper receipts are mandatory.

Bank Trust (Fideicomiso) Fees

If the seller is a foreigner holding title through a fideicomiso, the annual trust fees must be up to date. Additionally, trust cancellation fees may apply if the buyer—whether foreign or Mexican—is not assuming or being assigned the rights of the existing bank trust.

Some banks charge approximately $4,000 USD in administrative fees for trust cancellations, closures, or changes to the trust structure.

Inventory & Furniture Adjustments

If the home is sold furnished, the parties may agree on a separate bill of sale for inventory. In some cases, this has tax implications. Sellers should declare exclusions and valuations in advance to avoid disputes.

Optional Costs

• Home staging or photography prior to listing
• Minor repairs or renovations to secure top market value

These are not mandatory but are often recommended for high-end homes to support premium pricing and faster sales.

Summary: Typical Seller Costs Breakdown

• Capital Gains Tax: Variable (up to 35%)
  
  
• Commission + VAT: 6–8% + 16% VAT
  
  
• Legal review: $500–$2,000 USD
  
  
• HOA and trust bank fees: Variable
  
  
• Property tax: Low but must be paid in full
  
  
• Trust closure (if applicable): Up to $4,000 USD
  
  

A well-managed transaction minimizes friction and maximizes return. Our team at Outliance Real Estate prepares a full cost summary before listing, so sellers move forward with confidence, clarity, and full compliance.

Selling a high-end home in Cabo San Lucas or San José del Cabo? Outliance Real Estate — led by top realtors Jesús Valenzuela and Gaby López — specializes in luxury properties across Pedregal, Diamante, Palmilla, Querencia and other communities. Featured on HGTV’s House Hunters International and in Forbes México, we’re consistently ranked among the best real estate teams in Cabo. Whether you're relocating, investing, or seeking a second home, we provide expert, personalized service. Explore homes, condos and opportunities at Outliance.com. Follow us on Instagram @OutlianceRealEstate for exclusive listings, videos and behind-the-scenes insights.

Disclosure:
The information provided in this article is for general informational purposes only and does not constitute legal, tax, or professional advice. While Outliance Real Estate strives to ensure the accuracy and relevance of the content, no guarantee is made regarding its completeness or current validity. Readers should consult with an attorney, notary, or certified professional before making any decisions related to legal or real estate matters. Outliance Real Estate assumes no responsibility for errors, omissions, or interpretations resulting from the use of this content.

Disclosure:
La información presentada en este artículo es de carácter general y no constituye asesoría legal, fiscal o profesional. Aunque Outliance Real Estate procura mantener la información actualizada y correcta, no garantiza su exactitud, integridad o vigencia. Los lectores deben consultar con un abogado, notario o profesional certificado antes de tomar cualquier decisión relacionada con temas legales o inmobiliarios. Outliance Real Estate no asume responsabilidad alguna por errores, omisiones o interpretaciones derivadas de este contenido.