Property Taxes in Mexico

One of the great advantages of owning property in Mexico is that property taxes are very low. Property tax or “Predial” is 0.1% of the assessed valuation, compared to the 1% property tax paid in the United States. Imagine paying $250 instead of $2,500 for your $250,000 home! Taxes are paid annually, with the assessed value determined at the time of sale.

Once you own property in Mexico, you should consider the capital gains tax breaks the Mexican government offers to Mexican citizens and qualifying FM3 or FM2 Visa holders when selling a property. The tax exemption is only given to those who have owned the property for at least two years and reside in México for more than 182 days a year.

This article was provided courtesy of Buy In Baja, specializing in Northern Baja Real Estate.