How New Tax Rules Can Affect Your Mexican Real Estate Investment

March 13th, 2010 by
Categories: Legal, Real Estate

Mexico Fountain

By Charles Sipe and Mexico Real Estate Investment

In the past, it was easier for foreign investors in the Mexican real estate market to get tax exemptions on the sale of their Mexico properties. Proving residency required only one to two years and many foreign sellers found it easy to qualify for tax exemption.

Not any more. Recent changes in tax laws are expected to make it more difficult for foreign investors in Mexican real estate to avoid paying taxes on the sale of residential property. Under the new rules, only homeowners who can prove five years of primary residency can qualify for the tax exemption.

With a new emphasis on enforcement of the new tax laws, foreign buyers should exercise caution when investing in property in Mexico to take the appropriate steps to minimize future tax liability:

Also see New Rules Make It Tougher To Avoid Steep Capital Gain Taxes On Mexican Property Sales NuWire Investor