If you’re thinking about buying a condo in Mexico, whether for vacation, retirement, or rental income, one of the most common questions is: Do I have to pay property taxes? The short answer is yes — but the amount and process may surprise you. This article explains how property taxes in Mexico work, what costs to expect, and what every foreign buyer in Mexico should know before signing.
What Are Property Taxes in Mexico?
Property taxes in Mexico are known as Impuesto Predial. This tax is calculated based on the assessed value of your property and paid annually to the local municipality. Fortunately, these taxes are generally much lower than in countries like the U.S. or Canada.
For example, in popular coastal areas like Quintana Roo, the yearly property taxes in Mexico for a condo might be only a few hundred dollars, depending on location, size, and type of property.
How Are Property Taxes Calculated?
Municipalities determine the value of your condo using land and construction values set by the local government. Factors include:
- Location and land use
- Size of the land and built area
- Property age and condition
You’ll receive a bill at the beginning of the year and can usually get a discount if paid early (January–March).
You can consult this information on the official Gobierno de México or your local municipal office website.
What About Condo Fees and Other Costs?
Aside from taxes, most condos have HOA (Homeowners Association) fees, which cover maintenance, security, amenities, and administrative expenses. These are separate from property taxes in Mexico and vary depending on the development.
If you plan to invest in Mexican property for rental purposes, you may also need to consider income tax on rental income, which must be declared to SAT (Mexican tax authority).
More info on taxes and foreign ownership is available at Forbes México.
Is It Worth Buying a Condo in Mexico Despite the Taxes?
Absolutely. Mexico remains one of the top destinations for international buyers due to its affordability, stable legal framework for foreigners, and growing ROI. For many foreign buyers in Mexico, the low cost of real estate in Mexico—including low taxes—is a major advantage when compared to their home countries.
Yes, you do need to pay property taxes in Mexico when owning a condo — but the rates are affordable, and the process is straightforward. Understanding your obligations will help you make a smarter, well-informed decision as you explore opportunities in real estate in Mexico.
If you’re ready to begin your journey or want more details about properties near the Riviera Maya, our team at Grupo Miraro can guide you through each step of the process.
