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 home ownership. The low property taxes in Mexico can save you thousands of dollars a year, which makes Mexico real estate an attractive and potentially profitable investment. According to Mexconnect.com "In Mexico property taxes are known as predial. Compared to property taxes in the U.S., the cost of the predial is quite reasonable. It is a local tax and in most areas it is payable quarterly. This tax bill is usually received in the mail, and can be paid at the local bank. Another option is to request that the bank deduct the tax bill from your account when the bill becomes due and payable. It is important to remember to keep close track of the paid tax bills. You will need to show the paid receipts when the property in question is sold, or otherwise changes hands." Global Property Guide states that "property tax is levied on the cadastral value (assessed value) of the real estate. The tax rate ranges from 0.275% to 1.350%, depending on the property location as each state has a different tax rate. It is payable to the state government annually." So while the exact property taxes can vary from location to location, overall they are significantly lower than in the US. In contrast, the median real estate taxes as a percentage of the median home value was as high as 1.84% for Texas in 2007, according to www.taxfoundation.org. The exception is Louisiana which is cited to have a property tax of .14%. You will also have to pay some additional fees that you wouldn't pay in the US, such as the maintenence fee on the required bank trust or fideicomiso, which typically runs about $500, but this is often much less than the savings you will receive from lower property taxes. Disclaimer: Always seek tax advice from a professional accountant.