Taxes for Foreigners Buying and Selling Property in León, Guanajuato, Mexico

 Taxes for Foreigners Buying and Selling Property in León, Guanajuato, Mexico

Buying Property

When purchasing property in León, Guanajuato, foreigners are subject to the same taxes as Mexican nationals. These include:

• Acquisition Tax (Impuesto sobre Adquisición de Bienes Inmuebles): This is a state-level tax that varies based on the value of the property. It is paid by the buyer and is calculated on a sliding scale, with higher-value properties subject to higher tax rates. See the current rates [here](https://www.am.com.mx/leon/2024/11/24/piensas-comprar-una-casa-en-leon-este-es-el-impuesto-por-adquisicion-que-se-pagara-en-2025-724893.html).
• Notary Fees: These cover the costs of the notary public who will legalize the transaction. Notary fees are typically around 2-4% of the property value.
• Registration Fees: These are paid to the Public Registry of Property to register the change of ownership. Fees vary depending on the property value.
• Value Added Tax (VAT): VAT is generally not applied to the sale of residential property in Mexico. However, it may apply to the purchase of new commercial properties.

Selling Property

When selling property in Mexico, foreigners are subject to the following taxes:

• Capital Gains Tax (Impuesto Sobre la Renta or ISR): This federal tax applies to the profit made from the sale of the property. However, an exemption is available for homeowners selling their primary residence, provided they have lived in the property for at least three years.
• Cedular Income Tax (Impuesto Cedular por Enajenación de Bienes Inmuebles): This is a state-level tax on the sale of real estate. It is calculated on the profit from the sale, but an exemption is available under certain conditions. More information can be found [here](https://finanzas.guanajuato.gob.mx/c_calculadoraEnajenacionBienes/)..

Tips for Foreigners

• Consult with a qualified real estate lawyer: A lawyer specializing in real estate transactions can help you navigate the legal and tax implications of buying or selling property in Mexico.
• Obtain a tax ID number (RFC): This is required to complete property transactions and file taxes in Mexico.
• Understand the residency requirements: If you plan to become a resident of Mexico, different tax rules may apply.
• Keep accurate records: Maintain thorough records of all property-related expenses, as these can be used to reduce your tax liability.
• Disclaimer: This article provides general information about taxes related to real estate transactions in León, Guanajuato. It is not intended as legal or financial advice. Consult with a qualified professional for personalized guidance.