Take Advantage of Discounted Property Taxes (Impuesto Predial)
By owning property in Mexico, you already enjoy a lower cost of maintenance and taxes, but did you know you may take advantage of further discounts by prepaying your Impuesto Predial?
January is tax time for property owners in Mexico; property tax Impuesto Predial is calculated in the first two months of the year. Discounts are available if you pay your property tax in full before the due date. The percentage of the discount may vary from state to state and from year to year, ranging from a 5% to 20% discount depending on when you pay your taxes. In Quintana Roo, you will save up to 20% if you pay during December.
Property tax is 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 its purchase price or the property resale value.
Do not rely on receiving your tax bill in the mail; Mexico does not have the most reliable mail service, so it is essential to take the initiative in this matter to ensure your property taxes are paid on time.
Payment plans are available for homeowners who can not afford to pay in full by January, and some states offer a 50% discounted program for retirees over 60-years old and disabled homeowners. Check with your municipality for details and qualifications. Retired foreigners must hold temporary or permanent residence.
Predial may be paid in person at the municipality office, and many states now offer online payments with a credit card; check these links below.
*Note that property tax Impuesto Predial is a separate tax which is not related to your annual bank trust fee.