Forums > Specific Focus > Home Exchange/Rent/Sale

cristalhombre

Mar 31, 2009, 10:55 PM

Post #1 of 7 (4104 views)

Shortcut

Selling property - Mexico's capital gains tax

Can't Post | Private Reply

Does anyone have a decent understanding of immigration status and the various levels of capital gains tax in MX.

My scenario: I have a FMT. How does this compare with an FM3 on a percentage basis when private property is sold?

Any ideas.

I thought I had read where the law was changed recently...........even with an FM3 - a considerable amount of capital gains tax was paid on the sale. True or False?? Perhaps this is a Jalisco law and it varies all over the country.

Another question.....Does Mexico treat a capital gain like the USA. That being the difference between the selling price and the purchase price?...................OR do they just tax you for the full amount of the sale price....and at what percent.

If anyone has insight, or better yet first hand knowledge on this topic I would appreciate your feedback.

thanks

"NOT ALL WHO WANDER ARE LOST...."

bournemouth

Apr 1, 2009, 7:44 AM

Post #2 of 7 (4094 views)

Shortcut

Re: [cristalhombre] Selling property - Mexico's capital gains tax

Can't Post | Private Reply

Your most reliable source of information is going to be the notario who would handle the sale of any property you own. Laws are subject to local interpretation. Or you can ask a reliable real estate person in your area what is currently happening.

cristalhombre

Apr 1, 2009, 10:27 AM

Post #3 of 7 (4084 views)

Shortcut

Re: [bournemouth] Selling property - Mexico's capital gains tax

Can't Post | Private Reply

Yup....... I would do exactly as you suggest...... if I was in MX. I'm not.

Just thought I would get a few comments from others who have recently traded properties, with various immigration levels.

"NOT ALL WHO WANDER ARE LOST...."

Carron

Apr 2, 2009, 3:48 AM

Post #4 of 7 (4031 views)

Shortcut

Re: [cristalhombre] Selling property - Mexico's capital gains tax

Can't Post | Private Reply

I sold a property several years ago in Chiapas with FM-3 status (working, not retired). I paid no capital gains taxes because it had been my principal residence at the time of the sale for longer than one year.

Judy Parker

Apr 2, 2009, 9:25 AM

Post #5 of 7 (4020 views)

Shortcut

Re: [Carron] Selling property - Mexico's capital gains tax

Can't Post | Private Reply

The capital gains tax laws changed in 2007. Now you must own and reside in your house for 5 years before being eligible for a total exemption from capital gains tax. If you have not owned the property for 5 years there are some ways to reduce the amount of tax. Definitely talk to a notorio before selling and also before setting a sales price.

gpkgto

Apr 24, 2009, 8:02 AM

Post #6 of 7 (3905 views)

Shortcut

Re: [cristalhombre] Selling property - Mexico's capital gains tax

Can't Post | Private Reply

I did not know about the 5 year requirement--it used to be just 6 months of principal residence on an FM3. Anyway, the tax is based on the original legal appraisal price subtracted from the selling appraisal price (which may or may not be the sale price). The notario can help get the right "price", but the buyer may have to agree. If you bought the house other than new, your sellers (especially if they were savvy) probably had a low appraisal price put in your deed (for their benefit)--this is bad for you now.

Carron

Apr 25, 2009, 10:07 AM

Post #7 of 7 (3871 views)

Shortcut

Re: [gpkisner] Selling property - Mexico's capital gains tax

Can't Post | Private Reply

Yes, this is an excellent point. I do remember now that the man who sold to me had a very low appraisal value compared to what we actually paid for the property. I didn't pay much attention to this disparity because I got a lot of property for the price I paid and later I did not "qualify" for the capital gains tax at the time I sold.