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MEXLAW > MexLaw  > Predial – Tax Time for Property Owners in Mexico

Predial – Tax Time for Property Owners in Mexico

Purchasing a new house in Mexico? Do not forget the impuesto predial, Mexico’s annual property tax. 

SAT – Servicio de Administración Tributaria, also known as The Hacienda, collects the Federal taxes in Mexico.

Foreigners should be aware, unlike some countries where the property tax is included and paid by your mortgage company or bank, in Mexico, you are responsible for the property tax at the beginning of each year. You will not receive a bill in the mail; you must make a calendar note to remind yourself of this obligation.

Review the invoice at the municipality or online. Confirm that the property location and title deed name match. Also, make sure the Cuenta Catastral – the property tax account number, which you will provide to the municipal property tax authority to obtain your yearly Property Tax Assessment matches the account number on your deed. 

Never try to cheat SAT by registering the property at a lesser value to save on property taxes, it will catch up to you and affect your capital gains when you sell. 

Property taxes are significantly lower in Mexico compared to most foreign countries, and it is based on the cadastral value of the property, which is typically much lower than the property resale value. 

We recommend paying in December or January to take advantage of municipality discounts. Check with your municipality to find out what discounts are available. There are also discounts available for INAPAM card holders and persons with disabilities.

If you live outside of Mexico, you may have your property manager, lawyer, or accountant make the payment, but do make sure you get a proof of payment. Keep the receipt from the property tax in a safe place, along with the title deed.

Your Mexican lawyer or Mexican accountant can assist you in getting your property tax account set up.