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What are “soft costs,” and how much should I budget for them?

Architecture, engineering, permits, legal and notary fees, surveys and project management typically add 8% to 14% on top of your construction cost, and they’re rarely quoted upfront.

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Short answer: Soft costs — architecture, engineering, permits, legal and notary fees, surveys, and
project management — typically run about 8% to 14% of construction cost.
Why it matters: Soft costs don’t show up in a per-m² construction number, but they’re real, mandatory,
and easy to underbudget if you’re only thinking about bricks and concrete.
What to check:
● Ask whether your quote’s percentage assumes standard or complex design/engineering
● Confirm notary and fideicomiso setup fees are budgeted separately if you’re a foreign buyer
● Include ongoing costs (like annual fideicomiso fees) in your long-term budget, not just the build
Bottom line: Soft costs aren’t optional extras — they’re part of the real cost of building, and the earlier
you plan for them, the fewer surprises you’ll have mid-project.

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