Property tax in Mexico
See what Mexico's tax rules do to your property portfolio.
What Freeholt models for property, income and retirement in Mexico, and what it does not.
Free to start. No card. Rules reviewed 2 July 2026.
Modelled here
- Tax on rental income
- Capital gains on a sale
- Duty on purchase (approximate)
- Annual property or land tax
MXN · Rates as at 2 July 2026 · Estimates, not advice
Residents pay progressive rates (to 35%) on net rent; NON RESIDENTS 25% on GROSS (or elect net via a permanent establishment). On sale non residents pay 35% of the net gain (or a 25% of price alternative). The notario withholds at source.
How rental income is taxed in Mexico
For a resident owner: Progressive rates from 11% to 35%, stacked on other income in this country. The top rate of 35% applies above MX$4,500,000. For an owner living abroad and renting this out: Tax is withheld at source at 25% of the gross rent, before any costs.
Interest and losses
Mortgage interest is deductible against the rent. A rental loss is ring fenced: it carries forward against future rental income rather than reducing other income now.
Capital gains on a sale
Gains are added to income and taxed at the marginal income rate.
Annual property tax while holding
About 0.1% a year on the property value.
What it costs to buy
Freeholt estimates this at 3% of the price. That is an average rather than the published rule, which is not modelled here yet. Acquisition tax (ISAI) 2 to 6.5% by state + notary fees; coastal/border property is held via a fideicomiso bank trust (setup ~USD 1 to 2k).
Can a foreign buyer purchase here?
A foreign buyer needs approval before purchasing. In the restricted zone (100km of borders / 50km of coast) foreign buyers hold residential property via a fideicomiso bank trust (50 year renewable, ~USD 500 to 800/yr); direct ownership elsewhere. The US IRS does not treat a fideicomiso as a foreign trust.
How Freeholt models Mexico
Every rate above is priced from Freeholt's own table for Mexico and runs through the whole projection: rental income, a modelled sale and the annual holding costs all use the same figures. They cannot be edited yet, so a position that differs from the defaults has to be read with that in mind. The estimate assumes an individual owner rather than a company or trust, and where a rule is not modelled it is listed below rather than quietly priced at zero.
What running this property costs
In Mexico this covers the (very low) municipal predial, condo fees, insurance, management at about 10%, plus the annual fideicomiso trust fee (~USD 500 to 800) for coastal/border property.
How borrowing works here
Peso mortgage rates are high (~10%+); most foreign purchases are cash. All tax is computed in pesos.
What actually happened here
This country's own record, one year at a time. Nothing on this page is borrowed from another country. Move across a chart to read a year.
What Freeholt models here
- ModelledTax on rental income
- Resident and non resident rates, with interest and losses treated under the local rule.
- ModelledCapital gains on a sale
- Priced in the year of the sale under the rules of that year.
- ApproximateDuty on purchase
- Carried as one national average rather than the published scale, which differs by band and often by region.
- ModelledAnnual property or land tax
- Charged every year the property is held.
- Not yetIncome tax beyond the rent
- Not modelled for this country yet.
- Not yetDividends, interest and share sales
- Not modelled for this country yet.
- Not yetRetirement savings
- Not modelled for this country yet.
- Not yetInheritance and what happens on death
- Not modelled for this country yet.
What Freeholt does not model here
- Inheritance and estate tax
- Treaty relief between this country and the owner's country of residence
Coverage deepens country by country. Every figure is an estimate, not advice.
Compare with another country
Each page is built from the same table the app runs on, so the figures line up side by side.
Compare Mexico with another country — rent, gains, annual tax and duty, side by side.
Questions people ask
- Does Freeholt model Mexico property tax?
- Yes. Rental income tax, capital gains on a sale, duty on purchase and annual property or land tax are priced from Freeholt's own rate table for Mexico. Duty on purchase carries a simplification that the page names beside the figure. The rates are not editable yet, so one that differs in a particular case cannot be overridden. Every figure is an estimate, not advice.
- How is rental income from Mexico taxed if I live somewhere else?
- Tax is withheld at source at 25% of the gross rent, before any costs. Tax may also be due in the country of residence, with credit for what was paid here. Estimates only, not advice.
- What are the Mexico figures as at?
- The rate table for Mexico was last reviewed on 2 July 2026. Freeholt date stamps every country rather than implying all of them were checked on the same day. Estimates only, not advice.
Model a property in Mexico alongside everything else you own: see the year your portfolio starts paying you back.