PROPERTY TAXES IN MEXICO

Just as in any other country, Mexico depends upon income from the annual tax on property to keep local governments functioning and provide important local services for the region.

The good part is that the annual tax assessed on Mexican properties is often less than it might be for property in many other countries!

And, if the tax is paid in full during the first two months of the year, a discount is available in many municipalities.

Property taxes can be paid in up to six installments; due the first ten days of each second month (i.e. January, March, May, July, September, and November). This is a helpful payment method for many who are on tight budgets. For those who can pay the tax in one lump payment at the beginning of the year, it makes sense to make the payment prior to the end of February, if a discount for early payment is offered.

Not only does it save money for the property owner but also it helps the local government with its cash flow and in planning for its important activities.

Just as in other parts of the world, property taxes in Mexico must be current prior to transfer or sale of a property.

A certificate from the Property Tax department is a prerequisite for the preparation of a deed (escritura).

It makes sense to pay taxes on time. The penalties can be high for late payment, up to 3% per month for past due taxes.

In the event property taxes are not paid for several years, a tax lien is placed on the property and fees and penalties for removal of the lien can triple the normal tax amount very quickly.

One of the inevitable duties of property ownership

in any country is the payment of taxes. Better to do it right and avoid headaches and penalties later!