Mexico – Property Taxes

• Property tax in Mexico is known as “predial” and is based on the value of the property.
• The tax rate varies depending on the state and municipality in which the property is located, with rates generally ranging from 0.1% to 2% of the property’s value.

Capital Gains Tax (CGT)

• CGT is imposed on the sale of property in Mexico, and the rate is 35%.
• CGT is calculated on the difference between the acquisition price and the selling price, after deducting the expenses related to the sale.

Inheritance Tax

• Inheritance tax in Mexico is based on the value of the property and the relationship between the deceased and the heir.
• The tax rate can vary from 0% to 20%, depending on the circumstances and the relationship.

Gift Tax

• Gift tax in Mexico is imposed on gifts of property and is calculated as a percentage of the value of the gift.
• The tax rate can vary from 0% to 20%, depending on the circumstances and the relationship.

Tax on Property Income

• Income earned from renting out property in Mexico is subject to income tax.
• The tax rate can vary depending on the type of property and the income earned.

Tax Advantages

• There are no specific tax advantages for buying a house in Mexico.
• However, for foreign buyers, it is important to be aware of and comply with Mexican regulations regarding foreign ownership of property, including the requirement to obtain a permit from the National Foreign Investment Commission (NFIC) in order to purchase property in certain restricted zones.