Mexico Property Tax Guide,
Rental Income & Fideicomiso Costs
Plan Predial, ISAI acquisition tax, notary and registry charges, fideicomiso costs, rental income and ISR when selling Mexican property.
Research standards · Official sources reviewed 2 October 2026.
Hero photograph: Dennis Schrader / Unsplash.
Separate local property charges from federal taxes
This Mexico property tax guide covers Predial, ISAI acquisition tax, notary and registry fees, fideicomiso costs, rental income and ISR on disposal.
A Mexico City apartment, a Puerto Vallarta coastal home and land elsewhere in Mexico can follow different local rules. Start with the state, municipality, registered interest, tax residence and intended use. All peso examples use MXN; bank quotes may use another currency.
Important: Mexico has no single nationwide Predial or ISAI percentage. Obtain a local calculation for the transaction year. Foreign nationality, immigration status, tax residence and ownership through a fideicomiso are separate questions; a trust does not automatically provide tax relief.
FOUR PLANNING REFERENCES
LOCAL
Predial and acquisition charges
Confirm the property’s jurisdiction
50 YRS
Maximum initial fideicomiso term
Renewal requires the applicable process
35%
Optional ordinary rental deduction
Eligibility and Predial rules apply
700K
UDIS home-sale exemption ceiling
Conditions and evidence required
Mexico tax and ownership topics
Use these sections to compare purchase costs, annual ownership, rental operations and sale taxation.
Predial
Cadastral value & relief
ISAI acquisition tax
Notary & registry fees
Restricted-zone ownership
Fideicomiso costs
Resident rental income
Nonresident rentals
IVA & tourist rentals
ISR on disposal
Home-sale exemption
Title & condominium checks
Ownership budget
Remote management & succession
Checklist
Sources
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Start with the local property-tax account
Predial is a local property tax. Its base, schedule, payment periods, discounts and exemptions depend on the applicable jurisdiction and property classification. Do not calculate it by applying another city’s rate to the purchase price.
Obtain the cadastral account, current bill, paid receipts and an arrears certificate where available. Match land area, construction, use and owner details with the deed and the building on site. Check whether additions or subdivisions are recorded.
Mexico City’s official Catastro portal provides local property-account services; it is an example, not a nationwide payment portal. Use the equivalent authority for your actual property. CDMX cadastral services
Check valuations, payment periods and benefits
The cadastral value can differ from the market price and from the value used for acquisition tax. Ask which land and construction values, tables and adjustments were used, and when they were updated.
Early-payment benefits are local and time-limited. For example, CDMX announced 8% and 5% discounts for annual advance payment in January and February 2026. Those periods have passed; they are not current October offers. CDMX 2026 discount notice
Confirm any relief for age, disability, property use or other conditions with the local authority. An application or valuation challenge should not be assumed to suspend tax payments.
Request a local acquisition-tax calculation
ISAI—Impuesto sobre Adquisición de Inmuebles—and similarly named local acquisition taxes apply under local legislation. Rates, brackets, valuation bases, exemptions and responsibility for filing vary by location.
Have the notary calculate the charge using the current law and the required valuation evidence. Ask how the declared consideration, cadastral value and appraisal are treated; do not assume that a low contract price controls the assessment.
CDMX’s SIGAPRED includes notarial ISAI services. Buyers elsewhere need their state or municipal equivalent. Request a written calculation and payment evidence for the actual property. CDMX ISAI services
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Separate every closing-cost item
Ask for an itemized notarial closing estimate before paying a deposit. Separate acquisition tax, registry rights, appraisals, certificates, notarial fees, applicable VAT and any trust or banking charges.
A Mexican notario público has a formal legal role in documenting and completing the transaction. Independent legal review can still be useful for buyer interests, contractual conditions and unusual title issues.
Confirm which party pays each item and whether quotations include tax. Require official receipts and a clear timetable for the executed deed and registration evidence.
Tax and rights
Confirm ISAI, registry charges and certificates separately. Identify the authority, legal basis and assessed value.
Professional fees
Obtain quotes for the notary, attorney, surveyor and appraiser. Check included work and applicable VAT.
Trust and banking
Separate SRE permit rights from bank setup, annual administration and amendment fees. Record quote currency and tax.
Confirm whether a fideicomiso is required
Mexico’s restricted zone extends 100 km from land borders and 50 km from coasts. Foreign residential acquisition there commonly uses an authorized bank fideicomiso; the legal structure must be checked for the parcel and intended use. Foreign Investment Law
SRE permits allow foreign beneficiaries to use and enjoy restricted-zone property through a trust for a maximum initial term of 50 years. Confirm renewal requirements, trustee powers and permitted use. SRE fideicomiso guidance
Outside the restricted zone, confirm the applicable foreign-acquisition agreement and SRE process. A Mexican company is not an automatic substitute for the residential trust route; nonresidential arrangements need specific legal analysis.
Budget permit rights and bank charges separately
SRE’s published 2026 fee for issuing a restricted-zone fideicomiso permit is MXN 21,650. This government right is separate from the bank’s fees and other closing costs. The schedule was updated in September 2026 and remains subject to legal changes. SRE 2026 fees
Request the trustee bank’s written setup and annual fee schedule, including VAT, payment currency, late charges, assignment, beneficiary changes, amendments, renewal and termination.
For an existing trust, verify the remaining term, paid annual fees, permit, trust deed and authority to assign beneficiary rights. Ask whether the purchase involves assignment or a new trust and obtain the complete cost breakdown.
Choose the applicable rental-tax regime
Under ordinary individual rental rules, Article 115 permits either authorized deductions or an optional deduction of 35% of rental income, with qualifying Predial additionally deductible under the option. It is a deduction, not a 35% tax rate. SAT: rental deductions
Have an accountant choose the appropriate regime and calculate ISR from the owner’s full position. Companies, eligible RESICO taxpayers and platform activity need separate treatment; do not combine methods automatically.
Confirm RFC registration, CFDI rental invoicing, provisional payments, annual returns and tenant withholding. Keep leases, receipts and invoices. SAT: landlord obligations
Check gross-income tax and withholding
For the foreign-resident rental framework, Article 158 provides a domestic-law rate of 25% on income without deductions. Withholding and remittance duties depend on who pays; trust transactions also have trustee obligations. Confirm treaty effects and the precise taxpayer classification. LISR: Article 158
Do not apply the resident individual’s 35% deduction automatically to a nonresident owner. Tax residence requires its own analysis and is not established solely by nationality or a residence card.
Coordinate Mexican compliance with home-country reporting and tax credits. Obtain withholding evidence and written confirmation of the responsible filer.
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Classify the rental use before invoicing
The IVA law exempts qualifying property used exclusively as housing. The exception does not generally extend to furnished rentals or hotel-type accommodation; mixed-use property needs allocation. SAT: IVA Article 20 · Furnished housing rules
For commercial or tourist rentals, confirm IVA, local lodging tax, platform withholding, permits and reporting under the current rules. Do not assume a platform collects every liability or that residential zoning permits tourist operation.
Review condominium regulations and insurance before listing. Ask the local authority about applicable accommodation registration and operating conditions.
Calculate the sale tax before setting a net price
Selling Mexican property can generate ISR. For resident individuals, the notary calculates the applicable provisional payment on a public-deed transaction; an annual return may still be required. Obtain the detailed tax calculation and payment/withholding certificate. SAT: disposal guidance
Keep acquisition records, documented improvements, appraisals and eligible transaction costs. The statutory calculation can include cost updates and other adjustments; cash profit alone is not the taxable result. SAT: disposal deductions
For nonresident sellers, Article 160 provides a 25% gross-income default and a gain-based option under its conditions, using the maximum individual rate. Have the notary confirm eligibility and compare the applicable methods; do not assume 25% of profit.
Check the 700,000-UDIS conditions
The qualifying home-sale exemption has a ceiling of 700,000 UDIS of consideration, requires formalization before a public certifying official and cannot have been used for a home sale in the immediately preceding three years. SAT: home-sale exemption
It is not a 700,000-peso exemption. UDIS change in value, and tax residence, proof that the property is the seller’s home, land limits and other conditions need review. Have the notary approve the evidence before relying on relief.
Amounts exceeding the limit require the applicable calculation. An investment apartment, holiday property or company-owned asset should not be assumed to qualify.
Verify the legal interest and permitted use
Have the attorney and notary verify the registered deed, seller authority, liens, boundaries, cadastral identity and permitted use. Review the relevant Registro Público de la Propiedad records and obtain appropriate searches and certificates.
Determine whether the interest is private ownership, ejidal or communal land, a concession, leasehold or trust beneficiary rights. A possession document or informal contract does not establish that every interest can be transferred as private title.
For coastal property, investigate federal-zone or concession issues separately from the fideicomiso. For condominiums, review the regime, unit allocation, by-laws, dues, reserve fund and special assessments.
Model purchase, annual costs and exit taxes
Acquisition budget: price + locally calculated ISAI + registry rights + notary and advisory fees + appraisal/certificates + trust and permit costs where applicable + financing + contingency.
Annual budget: Predial + trustee fee where applicable + condominium dues + maintenance + insurance + management + rental taxes. Sale budget: ISR + professional and marketing costs + lien discharge + trust transfer/termination charges.
Illustration only: MXN 300,000 rent collected minus a qualifying 35% optional deduction of MXN 105,000 leaves MXN 195,000 before qualifying Predial and subsequent tax calculation. Cash expenses remain real costs even when the optional deduction is used.
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Keep authority, records and beneficiaries clear
Define management authority, expense limits, rent collection, invoicing and tax responsibilities in writing. Reconcile booking or tenant statements with bank deposits and withholding reports.
Plan succession with the attorney and trustee: confirm beneficiary designations, substitute beneficiaries, company or marital interests and any estate steps. Trust nomination and tax treatment are different questions.
For remote execution, confirm the power-of-attorney form, authentication, translation and notarial acceptance before scheduling completion. Maintain secure copies of deeds, permits, invoices and payment certificates.
Four checkpoints for Mexican property
Before an offer
Identify the municipality, title type, restricted-zone status and intended use. Obtain preliminary ISAI, closing and trust quotations.
Before completion
Approve title searches, valuation, tax assessment and seller authority. Confirm arrears, permit, payment instructions and registration evidence.
Before renting
Confirm tax residence, RFC and invoicing. Review ISR, IVA, withholding, lodging charges, permits and condominium restrictions.
Before a sale
Collect acquisition and improvement records. Ask the notary for an ISR estimate, exemption review and trust or mortgage discharge costs.
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Official references and local confirmation
OFFICIAL RECORDS
CDMX — cadastral services (local example)
CDMX — dated 2026 early-payment notice
CDMX — notarial acquisition-tax services
SRE — restricted-zone fideicomisos
Foreign Investment Law — ownership framework
SAT — Article 115 rental deductions
Current LISR — Articles 158 and 160
SAT — furnished-rental treatment
RESEARCH STANDARDS
Reviewed 2 October 2026. Local examples apply only to their stated jurisdiction and dates. Obtain current municipal/state charges, notarial ISR calculations and bank quotations for the actual property and owner.
General educational information only, not individual legal, tax, accounting, immigration, investment or brokerage advice. A Mexican notary, independent attorney, accountant and appropriate property professionals should verify the transaction. Services depend on jurisdiction, licensing and agreement.
Browse the Americas real estate tax directory to compare destinations.
Compare other property tax guides
Comparing countries can help you identify questions to ask about annual property tax, purchase charges, rental income and capital gains. The guides below cover different tax systems; compare their categories and verification steps before comparing headline rates.
Build a separate worksheet for each proposed property. Note the municipality, registered owner, intended use, acquisition date and currency. Beside every amount, record whether it is an official assessment, a professional estimate or an item still awaiting confirmation. A quoted purchase price alone does not establish the taxable value or the complete cost of ownership.
When comparing a property in Mexico with one elsewhere, separate recurring taxes from one-time transaction charges and private operating costs. Confirm who pays each amount, when it falls due and which document proves payment. Keep exemption applications, tax receipts and title records in the same property file so your advisers can trace the assumptions behind the budget.
Guatemala
Understand Guatemala property tax, IUSI reform dates, VAT or stamp duty, registry fees, rental income and capital gains. Plan with official sources.
Use this guide to compare the tax base, taxpayer responsibilities and documents to verify. Record the source and review date alongside each estimate, and keep the rules for Guatemala separate from those for Mexico.
Belize
Belize property tax guide: land and municipal tax, transfer stamp duty, rental income, tourism charges, GST, sale treatment and foreign-owner checks.
Use this guide to compare the tax base, taxpayer responsibilities and documents to verify. Record the source and review date alongside each estimate, and keep the rules for Belize separate from those for Mexico.
Honduras
Honduras property tax guide to municipal taxes, transfer and registry costs, rental income, capital gains, coastal ownership and title security.
Use this guide to compare the tax base, taxpayer responsibilities and documents to verify. Record the source and review date alongside each estimate, and keep the rules for Honduras separate from those for Mexico.
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