What taxes need to be paid?
Taxes are based on the Avalu mentioned above. What we have seen is that the property taxes normally amount to about .01% to .02% of the Avalu appraised price. An $80,000usd house will typically have a property tax of about $80usd. A $200,000usd house will be taxed about $400usd per year. You can also get discounts if this is your primary residence, if you are over 55, and if you pay on time. Homes in Mexico are never sold for back taxes. If the taxes have not been paid for 3 years, or sometimes 20 years, you can simply bring them up to date. Usually you can negotiate a discount if they are severely in arrears. When selling your home, you are exempt from any capital gains tax if, this is your primary residence in Mexico, if you have a current FM-3 which has been in effect at least six months, and if you have owned this property for more than six months. If both these requirements are not met, you are subject to a capital gains tax of 20% of the sales price, or 40% of the difference betw
