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May 1, 2024 · Whether you are a Mexican national, a Mexican resident or a foreigner, if you are selling your property in Mexico, you may be liable to pay a capital gains tax.There are ways to reduce or claim exemption from capital gains. Before you complete the sale of your property, you should seek the advice of an accountant in Mexico.
- Selling Fees
- Professional Fees
- Taxes on The Sale of Residential Property in Mexico
- Capital Gains Tax
- Deductions Allowed For Capital Improvements
- The Currency Exchange Rate Effect
- Selling Your Mexican Home as A Non-Resident
- Your Notary Public Is A Key Contact
- Learn More About Property in Mexico
It’s possible to market and sell your property without the services of a local realty agent; however, as we explain in our Guide to Realty Agents in Mexico, a good realty agent provides a marketing service, a conduit between the negotiating parties, and someone who will help to work through the paperwork to bring a property sale to successful compl...
In Mexico, the role of the Notary Public is paramount in property transactions. As we explain in our Mexico Real Estate Guide, a Mexican Notary Public is a legal professional with very important statutory roles. The fees for the Notary Public are paid for by the buyer. Some buyers also choose to hire a lawyer, which can add several thousand US doll...
Taxation on residential property sales is a complex area of Mexican tax law and every case will be slightly different depending on the circumstances. Also, keep in mind that tax laws are subject to reform and because house purchases tend to be long-term investments, the tax laws which apply today might apply entirely, in-part, or not at all when yo...
Mexico applies a capital gains tax on residential property of 25% on the gross sales value of the transaction without any deductions OR between 1.92% and 35% on the value of the gain (purchase costs less allowable exemptions and deductions): the percentage is calculated on a sliding scale in relation to the gainand we recommend you assume 35% as re...
You can deduct the costs of any capital improvements (e.g. building extensions, new flooring, swimming pools, new rooms) while you owned the property, as well as some closing costs commonly incurred when purchasing a home. You need official receipts —in Mexico, these are known as ‘facturas’— for all services and building work to claim these allowan...
In most towns and cities across Mexico, home prices are quoted in Mexican pesos when they are offered for sale. However, a few places and most notably in Los Cabos, Puerto Vallarta, San Miguel de Allende, Ajijic/Chapala, and Cancun/Riviera Maya, home prices are often seen quoted in US dollars. Even though the home may be marketed in dollars and the...
If you are not a resident in Mexico and/or you don’t have a Mexican tax ID, you cannot claim the one-off allowance exemption explained above, although you can claim qualifying deductions, so long as you have the official receipts (facturas) to prove the expenditures which can be deducted.
The Notary Public (in Spanish, Notario Público)is the most important professional person you will deal with when you buy and sell property in Mexico. Don’t rely on hear-say and instead get the Notary Public to assess your individual situation and the taxes that will likely apply to it. When you’re buying property, talk with the Notary about what yo...
We publish a wide range of guides and articles about property and real estate in Mexico: 1. Learn about the costs and taxes of buying property in Mexico 2. How do property owners value their Mexican house? 3. What drives house prices in Mexico 4. Putting your house on the market for sale 5. Comprehensive guide to buying and selling real estate and ...
- Real Estate Agent Fees. When listing your home for sale in Mexico, one of the first things you’ll need to consider is hiring a real estate agent. These seasoned experts can help you navigate the complex property selling process and ensure you receive the best possible price.
- Notary Public Fees. In Mexico, a notary public is required to oversee the sale of real estate, ensuring that all necessary documentation is completed and submitted correctly.
- Capital Gains Tax (Impuesto Sobre la Renta) Capital gains tax in Mexico, known as Impuesto Sobre la Renta (ISR), is levied on the profit generated from selling a property.
- Value-Added Tax (IVA) Value Added Tax (IVA) is a sales tax applied to transferring goods and services in Mexico. However, when it comes to selling residential real estate, IVA is not typically used.
May 26, 2024 · U.S. Citizen Selling Property in Mexico. U.S. citizens who own property in Mexico may be subject to both U.S. and Mexican capital gains taxes when they sell their property. However, the U.S. and Mexico have a tax treaty that allows U.S. citizens to claim a foreign tax credit for any Mexican capital gains tax paid on the sale of their property.
The acquisition of real estate must be conducted before a public notary, judge or property registrar officer and two witnesses when its value does not exceed the equivalent of 365 times the daily minimum wage. For higher values the transaction must be conducted by a Public Notary and registered in a deed. The parties should pay taxes in a real ...
Jun 17, 2020 · 3. Live in your home for at least six months, the time necessary for you to establish official “tax residency” in Mexico (a total of 183 days). 4. Make sure that your utility bills are in the name of the person who holds title to the property. If the property is owned jointly, try to obtain at least one utility bill in the names of both ...
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Can a foreign person sell a property in Mexico?
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Should foreigners invest in property in Mexico?
Capital Gains Tax for Foreign Investors Selling Property in Mexico. Capital gains tax is a consideration for foreign investors when selling property in Mexico. This tax is on the profit made from the sale of the property. List of details about capital gains tax in Mexico: The tax rate can vary based on how long you’ve owned the property.
