In the past, it was easier for foreign investors in the Mexican real estate market to get tax exemptions on the sale of their Mexico properties. Proving residency required only one to two years and many foreign sellers found it easy to qualify for tax exemption.
Not any more. Recent changes in tax laws are expected to make it more difficult for foreign investors in Mexican real estate to avoid paying taxes on the sale of residential property. Under the new rules, only homeowners who can prove five years of primary …

One of the great advantages of buying real estate in Mexico is that the property taxes are a bargain compared to property taxes in the US. For example a $850,000 home on the island of Cozumel that was featured in the New York Times has a annual property tax of just $300. According to Mexico Matters property taxes on a $250,000.00 home will typically not exceed $150.00 per year. The Mexican government does not view property taxes as a main source of revenues, but rather keeps them low to encourage …