Purchasing real estate in Mexico is a great investment. Particularly, because as you may already know, property taxes in Mexico are significantly lower than the comparable tax of your home country. However, there is one place where you might feel a little pinch closing costs. A significant amount of Mexico's property tax revenue generates from the transfer of property. It includes the capital gains tax that is usually on the seller's side.
We can define capital gain as the difference between the original purchase price of a property and the current selling price. This amount is what capital gains tax is paid. And it is generally the responsibility of the seller unless the selling price is lower than the purchase price, in which case the buyer may be responsible.
Make the best purchase decisions when acquiring real estate in Mexico. Check out our kit Understanding the Capital Gains Tax for up-to-date info on how to calculate and understand capital gains tax. In this kit, you will find:
- A capital gains tax calculator to help you know what you could expect
- Information on when you may be eligible for exemptions
- When you can use expenses as deductions
This kit will provide you with a solid foundation for understanding these costs. However, for the most up-to-date and useful assistance for capital gains tax, you will want to have the right people by your side. At Top Mexico Real Estate, we offer personalized and accurate information on capital gains tax to assist you in your real estate experience. With the support and advice from our staff and partners, you will have a smart, educated, and pleasant experience.