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![\"\"](\"http:\/\/i255.photobucket.com\/albums\/hh138\/beatlo\/Property%20Taxes\/j0422442-1.jpg\" "\\"La")
Whether a property owner or just the occasional visitor to the La Paz real estate region on\u00c2\u00a0the beautiful beaches\u00c2\u00a0of Mexico, everyone pays taxes, natives and foreigners.\u00c2\u00a0\u00c2\u00a0 Some of the taxes are hidden and others are not.\u00c2\u00a0\u00c2\u00a0 The purpose of this article is to touch on some of the important taxes levied and paid in Mexico.<\/p>\n
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\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0 WHO COLLECTS TAXES<\/strong>:\u00c2\u00a0\u00c2\u00a0 The SAT (Servicio de Administracion Tributaria), also known as Hacienda, is the federal tax collector.\u00c2\u00a0\u00c2\u00a0 It collects all federal taxes such as the ISR (Income or Capital Gains) tax, the IVA (Added Value) tax, the IDE (Tax on Cash Deposits) and the IEPS (Special Tax on Production and Services).\u00c2\u00a0 Each state government has its own taxes such as the 2 to 3 percent tax on lodgings and tourism.\u00c2\u00a0\u00c2\u00a0 The municipal governments assess and levy taxes on real and personal properties.<\/p>\n \u00c2\u00a0<\/p>\n \u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0 IVA TAX<\/strong>:\u00c2\u00a0\u00c2\u00a0 This is the Value Added Tax <\/strong>which is charged on goods and services.\u00c2\u00a0\u00c2\u00a0 The only exemptions are medicines and food.\u00c2\u00a0\u00c2\u00a0 Often this tax is INCLUDED in the price of food served in a restaurant, legal services, and the items purchased in a department or clothing store.\u00c2\u00a0\u00c2\u00a0 The business owner and tax resident is obligated to file a monthly declaration with Hacienda and pay the tax on earnings.\u00c2\u00a0\u00c2\u00a0 Credited against this tax are IVA taxes paid on goods and services acquired.\u00c2\u00a0\u00c2\u00a0<\/p>\n \u00c2\u00a0<\/p>\n \u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0 There is no IVA tax on the sale of vacant Mexico land<\/a> or on the sale of residential dwellings.\u00c2\u00a0\u00c2\u00a0 The tax is levied on all commercial construction when it is sold or transferred, at the rate of 16% of the value of construction, regardless of where the property is located.\u00c2\u00a0\u00c2\u00a0<\/p>\n \u00c2\u00a0<\/p>\n \u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0 IVA tax is charged on lodgings, hotel rooms and furnished homes which are rented.<\/p>\n \u00c2\u00a0<\/p>\n \u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0 As of January 1, 2010, this tax has been increased from 15% to 16% in the interior of the country and from 10% to 11% in the border zones<\/em><\/strong>.<\/p>\n \u00c2\u00a0<\/p>\n \u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0 IEPS TAX:<\/strong>\u00c2\u00a0 This is the Special Tax on Products and Services which is a new tax for 2010.\u00c2\u00a0 It will cover certain internet and cable TV services, alcohol, cigarettes, and gaming.<\/p>\n \u00c2\u00a0<\/p>\n \u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0 PROPERTY TAX<\/strong>;\u00c2\u00a0\u00c2\u00a0 This is a municipal tax with assessments on properties generally being made annually.\u00c2\u00a0\u00c2\u00a0 The tax can be paid in six installments (every two months) but probably should be paid in full within the first two months of the calendar year to obtain a discount.\u00c2\u00a0\u00c2\u00a0 Rates vary from area to area but are often far lower than U.S. or Canadian property taxes.<\/p>\n \u00c2\u00a0<\/p>\n \u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0 ISR TAX<\/strong>;\u00c2\u00a0\u00c2\u00a0 Literally the Tax on Rents has been described as both an income tax and a capital gains tax.\u00c2\u00a0\u00c2\u00a0 It is complex and a subject of confusion.<\/p>\n \u00c2\u00a0<\/p>\n \u00c2\u00a0<\/p>\n \u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0 ON INCOME<\/strong>.\u00c2\u00a0\u00c2\u00a0 Any income generated from sources within Mexico, is taxable.\u00c2\u00a0\u00c2\u00a0 From business or salary, the rates are variable depending upon the amount of income received.<\/p>\n This is the end of Part I, and you will be able to see the finishing paragraphs in a separate article by the end of the week.<\/p>\n Linda Neil<\/strong> has over 35 years of hands on experience in all aspects of Mexican real estate. She holds membership in AMPI, NAR, and FIABCI and PROFECO Certificate 00063\/96. Current member of the national advisory board of AMPI she is the owner broker of LINDA NEIL PROPERTIES for more information <\/em>(512)-879-6546 THE<\/em><\/strong> www.<\/span>TOP<\/span><\/span><\/span><\/span><\/span><\/span>mexicorealestate.com<\/span><\/a> NETWORK Want more Articles?<\/strong> Want to see Real Estate?<\/strong> Want to learn more?<\/strong>
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