What are the property taxes and other ongoing expenses I should be aware of?

The seller typically pays property tax up to the closing date, after which it becomes the buyer’s responsibility annually. Additionally, buyers are responsible for the Acquisition Tax, currently at 2% of the declared transaction value. Additionally, condos may have additional fees such as homeowners’ association charges. Utilities are reasonably priced, and household staff like maids, chefs, and butlers are also affordable.

In general terms, there are three types of taxes that foreigners pay when acquiring and owning real estate in Mexico: 

• Real Estate Acquisition Tax (ISAI): It depends on each entity so its cost varies. It is usually equivalent to 2% of the price of the real estate.
  1.depending on the municipality).

2.The notary public retains the ISAI

3.Land use and sale price determine the payment or exemption from ISAI.

• Income Tax (ISR): This is the tax levied on income received in Mexico.
• Property Tax (Impuesto Predial): This is the tax payment for any owner of real estate, depending on each state.