As retirees struggle to find a solid economy that provides a safe place to invest in, Mexico stands out as one of the most advantageous countries south of the border in which to do so. Out of a list of things that makes real estate investment in Mexico a very attractive option, property taxes may be by far the greatest of all advantages.
The property tax rate in Mexico may range from 0.275% to 1.350%, depending on the location of the property and it is payable annually. Regardless the property location, property taxes are lower than those in the US.
Average real estate taxes in Mexico
When compared to the United States real estate market, Mexico´s property taxes are almost 50% less than those of the US. A property of around $450,000 located in Sayulita can have an annual property tax of just $150. Similarly, the owner of a property of around $200,000 will normally not exceed $130.00 per year.
Why are property taxes in Mexico so cheap?
Mexico´s priority is to encourage investing, so instead of having property taxes as a source of big revenue, the government prefers to attract investment and promote homeownership by making the real estate market an attractive and profitable investment for foreign real estate buyers.
The cost of property ownership tax (Impuesto predial) in Mexico is pretty reasonable. After the owner receives the bill via mail they can pay it at a local bank where a receipt will be issued. Bear in mind that these paid receipts are a key document for the sale of the property in the future.
