{"id":1880,"date":"2010-07-14T09:24:55","date_gmt":"2010-07-14T15:24:55","guid":{"rendered":"https:\/\/www.topmexicorealestate.com\/temp-blog\/?p=1880"},"modified":"2010-07-14T09:26:03","modified_gmt":"2010-07-14T15:26:03","slug":"have-the-capital-gain-tax-laws-changed-in-the-puerto-vallarta-real-estate-region","status":"publish","type":"post","link":"https:\/\/www.topmexicorealestate.com\/blog\/2010\/07\/have-the-capital-gain-tax-laws-changed-in-the-puerto-vallarta-real-estate-region\/","title":{"rendered":"HAVE THE CAPITAL GAIN TAX LAWS CHANGED IN THE PUERTO VALLARTA REAL ESTATE REGION?"},"content":{"rendered":"

The law has not changed in the Puerto Vallarta Real Estate<\/a> zone, but the interpretation and enforcement have.\u00c2\u00a0 It is very important to remember that the intent of the exemption granted for Capital Gain tax on the sale of a primary residence is supposed to be just that; YOUR PRIMARY RESIDENCE!\u00c2\u00a0 That means you can\u00e2\u20ac\u2122t have your primary residence in the US and exempt your capital gain tax there and do the same here in the Mexico real estate<\/a> region.\u00c2\u00a0 The SAT (Servicio de Administracion Tributaria), also known as \u00e2\u20ac\u0153Hacienda\u00e2\u20ac\u009d, is the federal tax collector in the Puerto Vallarta real estate<\/a> region.\u00c2\u00a0\u00c2\u00a0 They collect all federal taxes such as the ISR (Income or Capital Gains) tax, the IVA (Added Value) tax and the IDE (Tax on Cash Deposits).<\/p>\n

\"\"<\/p>\n

Recently, the director of Hacienda has issued a memorandum stating:<\/p>\n

\u00e2\u20ac\u0153The foreigner who does not have a valid immigrant status before the proper Mexican authority is assumed to NOT be a resident of the country and is subject to the capital gain tax.\u00e2\u20ac\u009d\u00c2\u00a0 A valid immigrant status is considered an FM-2.\u00c2\u00a0 So tourist visas and FM-3\u00e2\u20ac\u2122s are no longer acceptable as valid immigrant status for the purpose of proving your residence.\u00c2\u00a0 So if you DO NOT have an FM-2 visa, the sale of your property is considered VACATION OR SECOND HOME OR A RENTAL PROPERTY and no exemptions<\/strong> are permitted. \u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0 The tax on non-exempted transactions is 30%<\/strong> of the difference between the value declared in the deed (in pesos) and the value of the new sale, less allowable deductions or<\/span> 20% of the entire amount of the transaction, whichever is less.\u00c2\u00a0\u00c2\u00a0 Therefore, when you buy your property in Puerto Vallarta<\/a>, you must insist upon having the full amount of the sale declared<\/strong> in the deed, in order to avoid overpaying taxes upon sale. \u00c2\u00a0It is also vitally important to ask for a \u00e2\u20ac\u0153factura\u00e2\u20ac\u009d (official tax receipt) when doing any capital improvement on your property.\u00c2\u00a0 In the event you have not done this, it is possible to have your property re-appraised by an authorized appraiser and this increased amount can be credited towards your tax basis.<\/p>\n

So if you do not have an FM-2, be prepared to get one prior to the sale of your property, or be prepared to pay your Capital Gains Tax here in Mexico.\u00c2\u00a0 Now some good news:\u00c2\u00a0 There is no \u00e2\u20ac\u0153double-taxation\u00e2\u20ac\u009d on the sale of your property here.\u00c2\u00a0 So if you pay your Capital Gain tax here in Mexico, you will not be subject to another tax in the US and you can re-patriot the funds legally.\u00c2\u00a0 Please remember that your friends who may have avoided the Cap Gain tax here previously are STILL subject to audit here in Mexico (for up to five years) and Cap Gain Tax in the U.S.!\u00c2\u00a0 So nobody gets off for free, legally.\u00c2\u00a0 The tax authorities in the U.S., Canada and Mexico work together and share information. Everyday there is more cooperation between the countries due to tax treaties. It is no longer possible to own a property in one country, enjoy income from that property, and not report it in BOTH the country where the property is located, and the country where the owner lives.\u00c2\u00a0 Failure to comply means the owner is subject to double taxation and heavy penalties when the omission to file and declare is discovered.\u00c2\u00a0 So if you are considering selling your property here in PV<\/a>, you should consult with a tax expert here and also your accountant in the US in order to determine the best way to file your taxes.\u00c2\u00a0 Here is something else to ponder; paying Capital Gains tax implies you have made a gain on the sale of your property.\u00c2\u00a0 Congratulations!\u00c2\u00a0 Would you rather have lost <\/strong>money, so you would not have to pay tax?<\/p>\n

Do you have a question about the Puerto Vallarta Real Estate market? Just ask!<\/strong>
\nMichael Green moved to Puerto Vallarta to take advantage of the unsurpassed lifestyle PV offers. Today, with over 12 years of experience, Mr. Green is one of the most recognized brokers in Vallarta. TOP Mexico Real Estate \u00e2\u20ac\u0153Mexico\u00e2\u20ac\u2122s Leading Network of Specialists for Finding and Purchasing Mexican Properties Safely<\/strong><\/em><\/span><\/span>!\u00e2\u20ac\u009d<\/strong><\/em><\/span><\/span><\/span><\/p>\n\n\n\n
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The law has not changed in the Puerto Vallarta Real Estate zone, but the interpretation and enforcement have.\u00c2\u00a0 It is very important to remember that the intent of the exemption granted for Capital Gain tax on the sale of a primary residence is supposed to be just that; YOUR PRIMARY RESIDENCE!\u00c2\u00a0 That means you can\u00e2\u20ac\u2122t […]<\/p>\n","protected":false},"author":22,"featured_media":13765,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[77,582],"tags":[1528,136,442],"class_list":{"0":"post-1880","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-how-to-buy-real-estate-in-mexico","8":"category-michael_green","9":"tag-how-to-buy-real-estate-in-mexico","10":"tag-mexico-property","11":"tag-puerto-vallarta-real-estate","12":"entry"},"_links":{"self":[{"href":"https:\/\/www.topmexicorealestate.com\/blog\/wp-json\/wp\/v2\/posts\/1880","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.topmexicorealestate.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.topmexicorealestate.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.topmexicorealestate.com\/blog\/wp-json\/wp\/v2\/users\/22"}],"replies":[{"embeddable":true,"href":"https:\/\/www.topmexicorealestate.com\/blog\/wp-json\/wp\/v2\/comments?post=1880"}],"version-history":[{"count":5,"href":"https:\/\/www.topmexicorealestate.com\/blog\/wp-json\/wp\/v2\/posts\/1880\/revisions"}],"predecessor-version":[{"id":1883,"href":"https:\/\/www.topmexicorealestate.com\/blog\/wp-json\/wp\/v2\/posts\/1880\/revisions\/1883"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.topmexicorealestate.com\/blog\/wp-json\/wp\/v2\/media\/13765"}],"wp:attachment":[{"href":"https:\/\/www.topmexicorealestate.com\/blog\/wp-json\/wp\/v2\/media?parent=1880"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.topmexicorealestate.com\/blog\/wp-json\/wp\/v2\/categories?post=1880"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.topmexicorealestate.com\/blog\/wp-json\/wp\/v2\/tags?post=1880"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}