Understanding Capital Gains Tax on Puerto Vallarta Properties

Questions about capital gains tax in Mexico is something that our Puerto Vallarta real estate agents frequently encounter. With a new fiscal budget soon going into effect in Canada, which will see some sellers paying capital gains rates as high as 66% on the sale of investment properties, we’re being asked about capital gains on second properties in Mexico even more often.

We have put together a quick guide to understanding how capital gains work on properties in Mexico, but please remember, this is a general review only and we recommend seeking the advice of a tax professional before making any decisions.

• Capital gains tax on real estate in Mexico is levied on the profit gained from the sale of a property, be it a home, condo, or piece of land.
• The Mexican capital gains tax rate will vary depending on the type of property, length of ownership, and sales price. For Mexican nationals, the tax rate can range from 10% to 35%, but for non-residents, the rate is 35%, not taking into consideration any adjustments allowed.
• Capital gains tax on real estate in Mexico is calculated by subtracting the original purchase price in pesos from the selling price in pesos. However, capital improvements made to your Puerto Vallarta property as well as certain costs, such as brokerage fees, can be deducted as long as you have facturas.
• The longer you have owned your property in PV, the lower the capital gains tax can be due to certain allowances. This is to encourage long-term investment in real estate and discourage short-term speculation. That said, fluctuating peso rates can negatively or positively affect taxes as well.
• There are also certain exemptions and deductions available for individuals selling their primary residence or properties used for business purposes. These exemptions can help reduce the amount of capital gains tax owed and are best reviewed by an attorney or tax accountant experienced in real estate transactions in Puerto Vallarta.

Capital gains taxation on real estate in Mexico is important to consider when buying or selling property. However, compared to other countries, particularly when considering meager annual property taxes and no governmental limitations on short-term rentals in Puerto Vallarta, purchasing an investment property in Vallarta or the surrounding region can be a very attractive proposition for many buyers.  https://banderasnews.com/

Come…relax and experience the charm and culture of Puerto Vallarta Mexico with quaint cobblestone streets, the fragrant scent of Bougainvillea, beautiful beaches, Mexican cuisine, outstanding golf courses, and a host of activities for everyone to enjoy!  

Who says Five Star Services and great value can’t go hand in hand?  Let Casa Bay Villas help you find that special vacation villa rental that is just perfect for you!

We specialize in luxury villa vacation rentals in Puerto Vallarta and Punta Mita Mexico.  Our villas are spacious yet intimate with personal staff to pamper your every need.  Whether you are planning a destination wedding celebration, a vacation with family, or just getting away with friends, let us show you the beauty of Puerto Vallarta in your private villa vacation rental.

Your vacation time is valuable and that is why we inspect every property we represent for the owners.  We are familiar with the accommodations, amenities, and staff to help you select the best rental property in Puerto Vallarta.  The results are vacation rentals that won’t leave you with unwanted surprises. 

Our private vacation rentals offer a full range of services during your stay from full staff services including a chef who will prepare two meals a day.

Our concierge services will personally contact you with information on activities, tours, or spa services in the privacy of your villa rental, to the best restaurants for dining out in Puerto Vallarta. We have the most current information to guide you for your holiday in Puerto Vallarta from our daily weather report to maps and directions.   

For more information about renting a villa in Puerto Vallarta visit our website at https://www.casabayvillas.com/ or email Jennifer at info@casabayvillas.com or call us at 203.386.8022.

We hope you will visit one of our luxury vacation rental villas soon and experience the magic of Puerto Vallarta!

Our mission at Casa Bay Villas is to exceed your expectations, listen to your needs, and assist you in selecting the best villa rental for your vacation in Puerto Vallarta Mexico.