Anyone considering buying or selling a property in Mexico should be aware of how the could be subject to capital gains taxes. Our article regarding this subject, originally written by local attorney David Connell and fiscalist Gabriela Rojas, has just been updated to reflect recent changes in the tax law.
"If you are selling your home in Mexico it is of the utmost importance to know, before you sign an agreement or offer to sell, how much you are going to pay in Capital Gains Tax (ISR) because this amount is going to be deducted from the price of sale. Before signing a private sales contact or offer, make sure you have a WRITTEN calculation of the Capital Gains Tax from your tax consultant or your notary. Make sure you review the calculation and confirmed with your consultant that there are no other ways to reduce the amount of Capital Gains Tax. In many cases, we have seen that with good tax consultant and a little knowledge of how the Capital Gains Tax is calculated (and a little pressure) the amount of tax can be significantly reduced…."
You can read the full article here.
