Real Estate Taxe Benefits in Mexico’s Riviera Maya
by Zoom Playa on April 12, 2020
Real Estate in the Mayan Riviera of Mexico has been on the rise in recent years. This is as a result of the influx of tourists in this area. This enchanting region covers a surface area of 80 miles along Mexico’s Caribbean Coast. There are several reasons for the booming real estate markets in Mexico’s Mayan Riviera such as;
- It’s strategic position (two International Airports in Cancun and Tulum)
- The adventurous nature of the towns
- Low Costs of Living
- World Class Hotels
- It’s gorgeous beaches
- High occupancy rate
- Ideal weather
- Modern Infrastructure, just to name a few.
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Added to the reasons listed above, the taxes in the Mayan Riviera are very low. Our focus for this article is on the low taxes in the Mayan Riviera. These low taxes have attracted a lot of real estate investors whose presence goes a long way to boost this area’s real estate market.
Real Estate Condo taxes in Mexico are exceedingly low. These taxes come in at 1/10th annually and as a result of this, real estate investor find this area affordable from the perspective of taxes. You can benefit from these taxes at virtually any price point.
Here is a breakdown of the taxes you are obligated to pay when you buy a property in the Mayan Riviera.
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Acquisition Tax
This tax is calculated at 2% of the property’s assessed value at the time the purchase is made. This rate is comparatively low as compared to taxes in other countries. This is one of the reasons for which the Mayan Riviera has seen a boost in its real estate industry.
Annual Property Tax
Also known as predial, annual property taxes in the Mayan Riviera are very low. These taxes are calculated based on the size and location of your property. You pay a fraction of the total net worth of your property. In addition to these low taxes, the government offers discounts to those who pay their predial in advance. The tax is due in January, however, those who pay in December receive a 25% discount on their property while those who pay in January receive a 20% discount on their property. You also have the freedom to make arrangement if you are in financial difficulties.
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Value Added Tax (IVA) and Rental Income “Impuesto sobre la renta”
This is a tax levied on your property if you rent it out for any given amount of time. This is because the property will be considered as income, therefore it will be subject to taxes. Whether the property is held solely under your name or held in trust, any expenses and rental revenues are reported in the same manner. However, these taxes are comparatively low and should not be a burden to pay.
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Capital Gains Tax
Capital gain taxes are assessed when property owners sell their properties. The amount is calculated based on the length of time you lived in that particular property. Tax law attorneys in the Mayan Riviera can advise you on how these reduce the capital gains tax.
As a result of the low taxes and flexible tax laws outlined above, the Mayan Riviera attracts a lot of real estate investors who see the area as a lucrative market.
Right now there are great options in pre-sale Condos on the market. Feel free to browse are pages of properties for sale in Playa del Carmen, Cancun, Tulum or search the properties on a map here.
