Mexico Connect
Forums  > General > Living, Working, Retiring


arseneault

Jun 18, 2004, 5:57 AM

Post #1 of 3 (763 views)

Shortcut

real estate taxes on the sale of property by foreigner

Can't Post | Private Reply
Does any one know what the real estate tax is on the sale of property by a foreigner...thanks



gpk

Jun 18, 2004, 11:47 AM

Post #2 of 3 (718 views)

Shortcut

Re: [arseneault] real estate taxes on the sale of property by foreigner

Can't Post | Private Reply
If you have an FM3 and the property is your primary residence for 6 months (used to be two years), and you sign an affidavit to that effect, there should be no capital gains taxes. If you don't qualify, the tax is 33% of the difference in the ASSESSED value at the time of purchase and the ASSESSED value at the time of sale--ACTUAL purchase price/sale price difference is irrelevant. The ASSESSED values must be made by a licensed engineer qualified to do assessments. Alternatively, the tax is 25% of the INCREASE in value minus deductions, but I believe the deductions require actual FACTURA receipts--not just store receipts, contractor notas, etc. I'm going through this right now--and this information came from a notario. Check with a notario where the property is located--sometimes the law can be bent.


arseneault

Jun 30, 2004, 5:49 AM

Post #3 of 3 (598 views)

Shortcut

Re: [gpk] real estate taxes on the sale of property by foreigner

Can't Post | Private Reply
Thanks very much for the insight. We met last week with a Mexican attorney and a notary and they confimed your information. We were told that from a practical standpoint the assessed value will not change in the first three years from purchase. Again thanks.........
 
 
Search for (advanced search) Powered by Gossamer Forum v.1.2.4