Comments on: The real costs of buying a home in Mexico

By: barkebauerpv@gmail.com

barkebauerpv@gmail.com — Thu, 11 Dec 2025 03:53:48 +0000

No reason whatsoever to hire a real estate agent and pay any percentage of fee’s if you are selling a house, condo or property.

By: Glenn Rotton

Glenn Rotton — Tue, 18 Nov 2025 18:16:40 +0000

In reply to gampiano@icloud.com. Thanks for reading, and congratulations on your new apartment in Playa del Carmen! Once your purchase is fully registered, you should receive the documents you need to put the utility bills in your name. In many cases, CFE or the water company will ask for the registered deed (escritura) before they make the change.

By: Mark Hagerstrom

Mark Hagerstrom — Tue, 18 Nov 2025 18:11:08 +0000

In reply to TPM_OAX. A bit more complicated than that and one ends up with both. Catch-22 is that a non-Mexican can’t sign an Acta.

By: Glenn Rotton

Glenn Rotton — Tue, 18 Nov 2025 18:10:58 +0000

In reply to TPM_OAX. Thanks for pointing this out. You’re absolutely right — in Oaxaca a lot of land is comunal, and buyers receive an acta de posesión instead of full private title. And as you mentioned, foreign buyers can’t get a fideicomiso on this type of property. It’s an important detail for anyone considering a purchase there. Thanks again for adding it.

By: Glenn Rotton

Glenn Rotton — Tue, 18 Nov 2025 18:06:11 +0000

In reply to richarddmacumber@aol.com.

Thanks for reading the article and for the thoughtful question. There is a lot of confusion about this topic because several different taxes and fees get mentioned together.

To clarify: sellers of used residential property in Mexico do not pay IVA (sales tax) on the sale of the home itself. IVA does apply to some parts of the transaction — for example, the commission paid to the real-estate agency — but it is not charged on the value of the property.

What sellers do pay is ISR, which is Mexico’s capital-gains tax. ISR is calculated on the gain, not on the gross sale price, and the notary applies allowable deductions such as acquisition costs, invoices for improvements, and inflation adjustments. If the property is a seller’s primary residence and they hold temporary or permanent residency, they may qualify for a full or partial exemption. Raw land never qualifies for that exemption.

So the idea of an 8% or 16% sales tax applied to the entire sale price does not apply to normal residential home sales in Mexico.

By: richarddmacumber@aol.com

richarddmacumber@aol.com — Tue, 18 Nov 2025 17:39:45 +0000

Good article. But I still have a question about the tax or fee paid by the owner of the home at the time of sale. I have heard that the seller must pay a “sales tax”, in the amount of whatever the VAT is; which is approx. 8 % in the frontera and 16 % elsewhere in Mexico. WITH NO OFFSET OR DEDUCTION for “basis,
or the amount the home originally cost plus recent capital improvements. (Such as is done when computing taxes on the gain in the US). The fee charged in Mexico is based on the gross sale price. (This results in some gamesmanship, but that is another issue).
What is the true and complete story about the “tax” paid by the seller in Mexico when your house is sold?
Thank you
R

By: TPM_OAX

TPM_OAX — Tue, 18 Nov 2025 17:28:08 +0000

Very good article Glenn, thanks!
Just wanted to add that in Oaxaca, the state where I live, most land is “comunal” (similar but not the same as Ejido) and here you get an “Acta de posesión”. With the acta de posesión a none-mexican can not get a fideicomiso (bank trust).

By: gampiano@icloud.com

gampiano@icloud.com — Tue, 18 Nov 2025 16:59:25 +0000

Thank you for this article. Ive recently purchased an aparment in Playa Del Carmen and am now waiting to receive the docs i need to put the utilitiy bill in my name. I don’t have a residency card yet, so Ive been paying HOA fees at the bank, and utilities at the 7 11. Who knew?
Also, if any one can tell me how to find a reliable facilitator in Playa to help with the residency process id be very grateful.

By: Robin Miller

Robin Miller — Tue, 18 Nov 2025 16:36:48 +0000

In reply to Robin Miller. Home is puerto penasco Love it there and so close to the U.S. for dr appts, and of course shopping.

By: Robin Miller

Robin Miller — Tue, 18 Nov 2025 16:35:32 +0000

In reply to Stewart Mandy. Exactly, I love the idea of a restricted zone map and also to include the borders, when I get back to my home (in Tucson for dr appts) I will have my AI assistant create an all inclusive map to share with everyone, If I can't attach ill have admins post it.