FAQ

The algorithm for calculating Capital Gains Tax in Mexico is far too complex to provide a straight “percentage” figure. The current Capital Gains Tax system gives owners roughly a 3.7MM peso exclusion from Capital Gains Tax for every name registered on the deed, therefore many buyers of homes above that value (about $225,000 USD at 2025 exchange rates) include their spouse on the deed and even children (only spouses and descendants can be included) to minimize or avoid paying any Capital Gains Tax on the eventual sale of their home.

The only caveat is that every name on the deed must also have a Mexican residency visa, an electric bill must be in the owner’s name to prove it as a primary residence, and this deduction can be taken only once every three years. There are other strategies that I use with all my selling clients to minimize their taxes at sale, we can discuss them when you are ready to sell in the future. As example, for one milliondollar sale, I worked with my real estate attorney who managed to reduce my selling client’s Capital Gains tax bill by 96%.