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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.

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