More upfront | Much less annually
Property Taxes
Real Property Transfer Tax
When planning for your new home in Los Cabos it is important to understand and budget for the Real Property Transfer Tax. The Real Property Transfer Tax is the equivalent of 2% of the property’s purchase price. As an example, if you purchase a home for $500,000, your Real Property Transfer Tax will be $10,000. This now makes your actual cost for the home $510,000.
There are benefits to paying the Real Property Transfer Tax. Payment of it allows you to acquire annual tax credits from the Mexican government. These credits are then added to the property’s cost basis when it comes time for you to sell your property. Applying tax credits such as this ultimately reduce any Capital Gains Tax you may incur when you plan to sell your property.