Capital Gains Tax in Mexico Currently, the rate is 25% on the gross amount of the transaction or 30% of the total capital gain. For expatriates, the capital gains tax will depend on the tax cost basis, the type of asset to be liquidated, the sale price, and other factors.
How do I sell my property in Mexico?
How to Sell My Home in Mexico
- Take a copy of your deed and your last property tax receipts to a Notario Publico (Mexican contract lawyer and Notary Public).
- Value the home.
- Advertise the home in English-written newspapers, on locally placed bulletin boards in churches, grocery stores, and clubs where foreigners visit.
What do I need to sell a house in Mexico?
Selling Your Mexican Property These Are Some of the Documents…
- Identificacion Oficial – Official Identification.
- Cedula Catastral – Cadastral Certificate.
- Ultimo Pago Predial – Last Property Tax Receipt.
- Certificado Libertad de Gravamen – Certificate Free From Liens and Encumbrances.
How does capital gains tax work in Mexico?
Capital gains tax law in Mexico states that tax is owed on the profit you receive when you sell your home or property. For a foreigner purchasing property in Mexico who is a non-tax resident of Mexico, the capital gains tax deductions allowed are: 1. Inflationary credit: Applied for each year of property ownership.
What kind of taxes do you pay on real estate in Mexico?
No deductions are allowed. CAPITAL GAINS Generally, capital gains realized by nonresidents from transferring real property in Mexico are subject to 25% withholding tax on the gross amount or selling price of the property.
Do you have to be permanent resident to sell property in Mexico?
* Mexican income tax law does not expressly state whether the foreign person selling a property must have temporary or permanent residency status to avail themselves of capital gain tax exemptions; it does, however, expressly state that the seller must be selling his/her primary residence in order to qualify for tax exemptions on capital gains.
Can you deduct capital gains on second home in Mexico?
Many of the deductions and/or exemptions allowed against capital gains are for Mexico residents only. Capital gains deductions cannot be itemized on second or vacation homes or investment properties. Always have the Notary make a note of the exchange rate.
