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Oct 8, 2024 · When you purchase your property in Mexico, you will need to account for a range of fees and taxes in addition to the agreed purchase price. These vary depending on the type of property and what state it’s situated in, and the Notary Public processing the legal transfer will advise you on which costs and taxes are applicable as part of your ...
When buying a home in Mexico, you must pay the Property Acquisition Tax (ISAI). These tax rates differ in each Mexican state. They can range from 2% to 5% of the value of the property.
Jul 30, 2023 · In addition to closing costs, there are also taxes associated with buying property in Mexico. Here are the two main taxes you should be aware of: Value Added Tax (VAT): VAT is a tax levied on the sale of goods and services in Mexico.
Property taxes in Mexico are notably lower than in most foreign countries. They are calculated based on the cadastral value, typically lower than the resale value of the property. Optimal Payment Timing: Maximize savings by paying property tax in December or January to benefit from municipality discounts.
Property tax is levied on the cadastral value or assessed value of the real estate. The tax rate ranges from 0.05% to 1.2%, depending on the property location as each state has a different tax rate. It is payable to the state government annually.
- 3.00%-6.00% (+16% VAT)
- 1.00%-1.50%
- Amount
- 2.00%-5.00%
Expats living and investing in Mexico will be responsible for paying tax for any property they own. Also, if you earn an income from renting your property to others or from any kind of business, you will be required to pay taxes. Of course, after you sell your property or investments in Mexico, you will also need to cover the taxes for that.
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Jan 18, 2024 · Before deciding to sell or rent your home or second home in Mexico, keep in mind the difference in property taxes. For residential properties, you can expect to pay around 6,5 pesos per 1,000 pesos based on the assessed property value.
