When you sell a property in Mexico, you will be subject to the fees of any professional services you contract, plus the following taxes and fees:
Mexican Tax on Property Gains (Capital Gains Tax): Mexico recently reformed its property tax laws to make it clearer for property owners who are selling their assets when and how much they need to pay in Capital Gains Tax. Exemptions can be applied before taxes are calculated, but these are dependent upon your residency status, how long you have owned the property, and whether the home was your primary residence for at least two years. A good realty agent, Notary Public, or lawyer will be able to advise you.
Foreign Tax on Property Gains: Depending on your nationality, your 'home' government may require you to pay taxes on any gains you realize from your Mexican property. Whether you have to pay, and how much depends on your country's tax policies, your residency status, and whether your home country has a tax-agreement in place with Mexico (if it does, then usually any taxes you pay to the Mexican government can be deducted from any additional taxes owed to your home government). You should contact your accountant or other tax professional as every situation is unique and tax law is complex.
Agent Fees: If you employ an agent, expect charges of around 4-8% of the value of the sale as a fee, but you may want to negotiate on this beforehand. You will also need to pay IVA (Mexican Sales Tax) on agent commissions. For example, if you pay 8% commission on a $100,000 sale ($8,000), you will need to pay IVA on $8,000. As IVA is relatively high in Mexico, you should take this into consideration as part of your budgeting.
No comments:
Post a Comment