Property Taxes in Mexico

<em>Understand the Mexican property tax regulations...</em>

Property taxes in Mexico are local rather than federal (national) taxes, meaning that they are paid to the local (state) finance department. In the case of Mexico City (CDMX), taxes are payable to the Tesorería.

Impuesto Predial

The Impuesto Predial is a tax payable by individuals and businesses, whether resident or non-resident. The tax can be paid in advance (for 12 months) with a discount, or can be paid every two months for the preceding two months. In the latter case property owners receive a bill (boleta). Payment can be made by bank transfer, in cash to the local tax (Tesorería) office, or by debit or credit card. Money transfers from abroad to pay this tax are also possible.

Current rates of Impuesto Predial can be found on the Tesorería website for the appropriate state; for example, find rates for the Predial tax in Mexico City (in Spanish).

Note that rates may differ in other States, as may possible payment methods.

Liability for Income Tax (Impuesto Sobre la Renta)

If more than one property is sold in any one fiscal year (January to December), the capital gain on the second property sold will be subject to income tax (Impuesto Sobre la Renta - ISR). One property per fiscal year may be sold without any ISR liability.

Information provided by Cesar Reyes, Contador Público Email Tel: (55) 5915 2065 / (044 55) 1954 5615