Quick Answer
The ISAI (Impuesto Sobre Adquisicion de Inmuebles) is the property transfer tax paid by the buyer at closing. In Baja California Sur, the rate is approximately 2% to 3% of the property's assessed or transaction value, whichever is higher. This is the single largest closing cost and is paid to the state government through the notario.
Detailed Answer
The ISAI (Impuesto Sobre Adquisicion de Inmuebles) is a property transfer tax paid by the buyer at closing — it is the single largest component of your closing costs. In Baja California Sur, the ISAI rate is approximately 2% to 3% of the property's assessed or transaction value, whichever is higher. For a $500,000 property, the ISAI comes to approximately $10,000-$15,000 USD. The tax is collected by the notario publico on behalf of the state government.
The exact ISAI rate can vary slightly based on the municipality (Los Cabos vs. La Paz) and the property's official assessed value as determined by the avaluo appraisal. Some states in Mexico charge higher transfer taxes (up to 4-5%), making Baja California Sur relatively competitive. The ISAI is a one-time cost — you only pay it when you purchase. When you eventually sell, the buyer at that time pays the ISAI on their acquisition.
Our team includes the ISAI calculation in every cost estimate we provide, so you know exactly what to expect before making an offer. This tax is non-negotiable and required by law, but understanding it upfront prevents surprises at the closing table. Contact us for a full cost breakdown tailored to your target property.